Which of the following is NOT a function of commercial banks?
Practice Questions
Q1
Which of the following is NOT a function of commercial banks?
Accepting deposits
Providing loans
Issuing currency
Facilitating payments
Questions & Step-by-Step Solutions
Which of the following is NOT a function of commercial banks?
Step 1: Understand what a commercial bank is. A commercial bank is a financial institution that provides services like accepting deposits, making loans, and offering checking accounts.
Step 2: Learn about the functions of commercial banks. Common functions include accepting deposits, providing loans, and facilitating payments.
Step 3: Identify the role of a central bank. A central bank is responsible for issuing currency and managing a country's monetary policy.
Step 4: Compare the functions of commercial banks and central banks. Recognize that issuing currency is a function of central banks, not commercial banks.
Step 5: Conclude that the option 'issuing currency' is NOT a function of commercial banks.
