Question : Which of the following is a function of a commercial bank?
Option 1: Issuing currency notes
Option 2: Providing credit facilities
Option 3: Managing the foreign exchange reserves of India
Option 4: None of the above
Correct Answer: Providing credit facilities
Solution : The correct answer is (b). Providing credit facilities
One of the primary functions of a commercial bank is to provide credit facilities. Commercial banks play a crucial role in facilitating lending and borrowing activities in an economy. They accept deposits from customers and use those funds to provide various types of credit facilities, such as loans, overdrafts, cash credits, and trade financing, to individuals, businesses, and other entities.
Commercial banks play a vital role in the economy by channeling funds from savers to borrowers, thus facilitating economic activities and growth.
Question : Which of the following is not a function of the Reserve Bank of India (RBI)?
Option 2: Regulating the banking system
Option 3: Regulating the securities market
Option 4: Managing the foreign exchange reserves of India
Question : Which of the following is a function of a non-banking financial company (NBFC)?
Option 2: Accepting deposits from the public
Question : Which of the following is not a function of commercial banks?
Option 1: Accepting deposits
Option 2: Granting loans
Option 3: Issuing currency notes
Option 4: Providing remittance services
Question : Which of the following institutions is responsible for managing the foreign exchange reserves of India?
Option 1: Reserve Bank of India (RBI)
Option 2: Securities and Exchange Board of India (SEBI)
Option 3: National Stock Exchange of India (NSE)
Question : Which of the following is a feature of a credit rating agency?
Option 1: Regulating the functioning of commercial banks
Option 3: Issuing credit ratings for debt securities
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