Question

Observe the relationship of the first pair of word and complete the second pair.

The primary function of a commercial bank : Acceptance of deposit, the agency function of a commercial banks : ______.

Options

•  Advancing of loans 

• Credit creation

• Providing overdraft facility

• Transfer of funds

Answer 1

The primary function of a commercial bank : Acceptance of deposit, the agency function of a commercial banks : Transfer of funds.

Explanation:

1. The first pair represents the relationship between a commercial bank's basic function (deposit acceptance) and its purpose.
2. Similarly, in the second pair, a commercial bank's agency function involves working on behalf of customers to deliver certain services, such as financial transfers.