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Question : A ___________ is a financial institution that accepts deposits from the public and provides credit facilities.

 

Option 1: Commercial bank

Option 2: Central bank

Option 3: Cooperative bank

Option 4: Development bank


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Commercial bank


Solution : The correct answer is (a) Commercial bank. 

A commercial bank is a financial institution that accepts deposits from the public and provides various credit facilities such as loans, overdrafts, and lines of credit. Commercial banks play a crucial role in the economy by mobilizing savings from individuals and businesses and channeling those funds towards productive activities through lending. They offer a range of banking services, including current and savings accounts, fixed deposits, ATM services, online banking, and payment services.

 

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