Question

Name the institution which performs the functions of accepting deposits, granting loans, and making investments, to earn profits.
A.Commercial Bank
B. Central Bank
C. Neither A nor B
D. Both A and B

Answer 1

Hint:
-The bank that performs the functions of accepting deposits, granting loans, and various other functions can be sorted into Public Sector banks, Private area banks, Foreign Banks, and Regional Rural Banks.
-They are banks that have no role in looking after the GDP of the country or managing the fiscal rates.
-Reserve Bank of India is the head bank that manages those banks.

Complete answer:
Option A. A commercial bank is a benefit based monetary organization that awards advances, acknowledges stores, and offers other monetary administrations, for example, overdraft office, electronic exchange of assets, accepts deposits, and grants loans. It gives transient credits to businesses and makes cash. Thus, it is the correct option.

Central banks complete a country's financial approach and control its cash flexibly, frequently commanded with keeping up low swelling and consistent GDP development. Thus, it is an incorrect option.

Additional Information:
On a full-scale premise, central banks impact loan fees and partake in open market tasks to control the expense of getting and loaning all through an economy.
Central banks likewise work on the small size, setting business banks' hold proportion and going about as moneylenders of commercial banks.

Hence the correct answer is option ‘A’.

Note:
i) All significant banks are viewed as commercial as indicated by the essential structure as given in the Reserve Bank of India Act 1934.

ii) Commercial banks do assume a significant function in satisfying the present moment and mid-term credit prerequisites in an economy. In any case, they don't give long haul credit to more than 15 years or more, with the goal that liquidity of resources can undoubtedly be kept up.

iii) Commercial banks are directed under the Banking Regulation Act 1949 and empower a bank to complete business activities of keeping cash as stores and award credits to people in general, corporates, and the public authority itself.