Home Indian Economy MCQs

Question

Which of the following is a function of commercial banks?

  1. Controlling inflation
  2. Issuing currency
  3. Accepting deposits and granting loans
  4. Acting as banker to the government

Answer:

Option C: Accepting deposits and granting loans

Detailed Solution:

The correct answer is “Accepting deposits and granting loans”.

Commercial banks primarily accept deposits from the public and provide loans for various purposes.