Which primary function of a commercial bank
Subject : Business
Question: Which of the following is a primary function of a commercial bank?
A) Issuing government currency
B) Providing financial services such as loans, savings accounts, and investment options
C) Regulating monetary policy
D) Conducting scientific research
Expert Verified Solution:
The correct answer is:
B) Providing financial services such as loans, savings accounts, and investment options.
Explanation:
The primary function of a commercial bank is to provide a range of financial services to individuals and businesses. These services include:
Loans: Offering various types of loans, such as personal loans, mortgages, and business loans.
Savings Accounts: Providing accounts for individuals and businesses to deposit and earn interest on their savings.
Investment Options: Offering investment products and services, such as certificates of deposit (CDs), mutual funds, and retirement accounts.
In contrast:
A) Issuing government currency is typically the role of a central bank, not a commercial bank.
C) Regulating monetary policy is also the responsibility of a central bank or monetary authority, not a commercial bank.
D) Conducting scientific research is not a function of commercial banks; it is usually done by research institutions or universities.
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