Financial Awareness - Risk, Stability & Emerging Finance
Which of the following functions helps commercial banks in earning profit?
Which of the following functions helps commercial banks in earning profit?
easy Q13 of 15
Step-by-Step Solution
Step 1: Identify profit-generating functions
Granting loans and advances earns interest income, which is a major source of profit for banks.Step 2: Analyze other options
Accepting deposits is a liability, while collection of cheques and safe deposit lockers are service functions with minimal direct profit.Final Answer:
Granting loans and advances → Option AQuick Check:
Profit function = Granting loans and advances ✅
Quick Trick: Loans generate interest income for banks
Common Mistakes:
- Assuming deposit acceptance directly earns profit
Master "Risk, Stability & Emerging Finance" in Financial Awareness
Start learning the concept with an interactive lesson.
Want More Practice?
15+ quiz questions · All difficulty levels · Free
Free Signup - Practice All QuestionsMore Financial Awareness Quizzes