Financial Awareness - Risk, Stability & Emerging Finance
Which of the following statements about the legal definition of banking is INCORRECT?
Which of the following statements about the legal definition of banking is INCORRECT?
hard Q9 of 15
Step-by-Step Solution
Step 1: Recall the legal definition of banking
Banking includes accepting deposits, lending money, and allowing withdrawals by cheque or draft.Step 2: Identify incorrect statement
Issuing shares and debentures is a capital market activity, not part of banking.Step 3: Explain why other options are correct
Accepting deposits repayable on demand or otherwise, lending money, and withdrawals by cheque are core banking activities.Final Answer:
Banking includes issuing shares and debentures to the public → Option CQuick Check:
Issuing shares and debentures is NOT part of banking ✅
Quick Trick: Remember capital market activities are outside banking definition.
Common Mistakes:
- Confusing banking with capital market functions.
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