Advertisements
Advertisements
Questions
Give two agency functions of commercial banks.
Mention two/three agency functions of a Commercial Bank.
Explain briefly five agency functions of a commercial bank.
Discuss any two agency functions of Commercial Banks.
Advertisements
Solution 1
- Collecting Receipts: Banks collect consumer payments such as cheques, bills, promissory notes, and hundreds. They earn interest, dividends, and rent based on customer instructions.
- Making Payments: Banks fulfill customer orders by paying loan instalments, interest, rent, insurance premiums, and taxes on their behalf.
- Purchase and Sale of Securities: Banks purchase and sell securities on behalf of their customers, including shares, debentures, bonds, and government securities.
- Acting as Trustees and Executors: Commercial banks serve as Trustees and Executors for their customers. They also represent their customers at other banks.
- Transfer of Funds: Banks offer remittance services, allowing consumers to move payments both domestically and internationally.
Solution 2
Two agency functions of commercial banks are as follows:
- Collection of Funds: Commercial banks collect funds for their customers, including cheques, bills of exchange, dividends, promissory notes, and rents. This solution saves clients time and effort while ensuring accurate, efficient processing.
- Transfer of Funds: Commercial banks transfer funds between branches and locations at the request of consumers. They pay loan instalments, interest, insurance premiums, and taxes on behalf of their customers. Commercial banks facilitate and secure transactions for their clients.
APPEARS IN
RELATED QUESTIONS
A bank which is known as bankers bank.
State with Reasons whether the following statement is TRUE or FALSE.
Overdraft facility is given to saving account holders.
State with Reasons whether the following statement TRUE or FALSE.
Current account is suitable for salaried people.
Explain the types of banks?
Mention two differences between the Central Bank and a Commercial Bank.
Give the meaning of Commercial Banks?
What do you mean by Industrial Banks?
Briefly explain about Correspondent Banks?
What are the objectives involved in Regional Rural Banks?
Mention the purposes of Agricultural and Cooperative banks?
The ______ function of the Central bank involves the settling claims of Commercial banks through a process of book entries.
Which of the following banks regulate the supply of money in the economy?
It acts as the bankers' bank.
Central bank is owned by the ____ while commercial bank is owned by ______.
Name the largest commercial bank of India.
Name one development bank.
What is a commercial bank?
Why was EXIM Bank set up in India?
Explain the four functions of the Reserve Bank of India.
