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Explain Briefly the Five Agency Functions of a Commercial Bank. - ICSE Class 10 - Economics

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Questions

Explain briefly the five agency functions of a commercial bank.

Mention two agency function of a Commercial bank.

Solution

Agency functions of a commercial bank:

1) Commercial banks provide services such as collection and making payments on behalf of their customers such as insurance premiums and dividends.

2) They also help in transferring funds from one place to another in the form of cheques and drafts.

3) Trustee and executor: Banks preserve the wills of their customers and execute them after their death.

4) They also undertake purchase and sale of securities such as shares, stocks, bonds and debentures on behalf of their customers.

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Solution Explain Briefly the Five Agency Functions of a Commercial Bank. Concept: Commercial Banks: Functions.
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