Financial Awareness - Risk, Stability & Emerging Finance
Which of the following statements about the functions of commercial banks is correct?
Which of the following statements about the functions of commercial banks is correct?
hard Q9 of 15
Step-by-Step Solution
Step 1: Understand classification of functions
Accepting deposits and granting loans (including overdraft) are primary functions; collection of cheques is an agency function; locker facilities are general utility functions.Step 2: Analyze each statement
Accepting deposits is primary, not secondary; granting overdraft is a primary function; collection of cheques is agency, not primary; locker facilities are utility, not agency.Final Answer:
Granting overdraft facility is a primary function of commercial banks → Option BQuick Check:
Overdraft facility = Primary function ✅
Quick Trick: Overdraft is a type of loan (primary function)
Common Mistakes:
- Misclassifying functions leads to wrong answers
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