Question

Commercial banks act as trustees and executors for their customers. This is a/an ______ function of Commercial bank.

Options

• General utility

• Agency

• Marketing

• Public Relations

Answer 1

Commercial banks act as trustees and executors for their customers. This is a/an agency function of Commercial bank.

Explanation:

Acting as a trustee or executor is a commercial bank’s agency function in which it legally serves as an agent on behalf of its customers to preserve, administer, or manage their estates and wills. These services are classified as secondary functions, as opposed to ordinary utility activities such as locker facilities, because they create a formal, fiduciary relationship to carry out the client's direct legal commands.