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.