Commercial banks help in promoting large-scale production and growth of priority sectors such as agriculture, small-scale industry, retail trade and export.2 pointsTRUEFALSE

One significance of commercial banks is that it facilitates payments for smooth flow of money within the economy.2 pointsTRUEFALSE

One significance of commercial banks is that they promote balanced geographical distribution of bank branches in backward areas2 pointsTRUEFALSE

Define the term Commercial Bank. Explain the main functions of Commercial Banks

What is the primary function of the Commercial Banks in the financial system?Question 13AnswerA.Conducting monetary policyB.Regulating the stock marketC.Issuing currencyD.Providing loans and accepting deposits

A retail bank helps drive economic growth by:A.providing loans and financial services to corporations.B.keeping all deposited funds in reserve at all times.C.requiring all loans to be paid back within a few weeks.D.offering affordable mortgage loans to home buyers