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What is the main function of commercial banks like SBI and HDFC?

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Question

What is the main function of commercial banks like SBI and HDFC?

Options

  • Issuing currency

  • Promoting saving habits only

  • Financing international organizations

  • Accepting deposits and granting loans

MCQ
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Solution

Accepting deposits and granting loans

Explanation: 

Commercial banks are general-purpose banks that accept deposits from the public and provide short-term loans for everyday needs.

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