What is commercial bank answers? (2024)

What is commercial bank answers?

The term “commercial bank” refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

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What is a bank short answers?

What Is a Bank? A bank is a financial institution that is licensed to accept checking and savings deposits and make loans. Banks also provide related services such as individual retirement accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit boxes.

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What is the best explanation of a commercial bank?

Definition. Commercial banking is a type of banking that provides services for businesses, government agencies, and institutions like colleges and universities to help them grow and profit. Commercial banks make money mainly by loaning money to businesses and earning back interest and fees from these loans.

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What is a commercial bank quizlet?

Commercial bank. financial institution that offers checking accounts, demand deposits, business and personal loans, savings vehicles and a variety of other related financial services.

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What is the goal of the commercial bank ___________?

Answer and Explanation: The correct option is (a) maximize the wealth of its shareholders. A commercial bank is a profit-seeker. Its main goal is to earn profits so that its shareholders see an appreciation in the amount that they have invested.

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What is commercial bank details?

What Is a Commercial Bank? The term “commercial bank” refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

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Why banking best answers?

Sample Answer:

The banking industry is lucrative and plays an important role in our economy. It offers challenging roles and opportunities to develop skills and knowledge. The dynamic nature of the industry and its relevance in the economic scenario is why I want to pursue a career in the banking sector.

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What are 5 functions of a commercial bank?

Commercial banks perform various functions that are as follows:
  • Accepting deposits.
  • Granting loans and advances.
  • Agency functions.
  • Discounting bills of exchange.
  • Credit creation.
  • Other functions.

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What is a bank of questions?

A question bank refers to a pool of test questions to be used on various assessments across time. For example, a Certified Widgetmaker Exam might have a pool of 500 questions developed over the past 10 years. Suppose the exam is delivered in June and December of every year, and each time 150 questions are used.

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What is commercial bank and its types?

Commercial Banks can be further classified into public sector banks, private sector banks, foreign banks and Regional Rural Banks (RRB). On the other hand, cooperative banks are classified into urban and rural. Apart from these, a fairly new addition to the structure is a payments bank.

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Why are commercial banks better?

A commercial bank is an easy and flexible source of accepting and withdrawing money. These are the economical source of funds as it manages deposits and withdrawals at a low cost and involves no hidden cost. It generally provides the loan against some security.

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Why do commercial banks matter?

Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).

What is commercial bank answers? (2024)
What is a commercial bank example?

For instance, American Express Bank, Hong Kong and Shanghai Banking Corporation (HSBC), Standard & Chartered Bank, Citibank, and more such banks.

Which of these is a commercial bank?

The correct answer is State Bank of India. A Commercial Bank is a financial institution that accepts deposits, offers checking and savings account services and make loans.

What do commercial banks mostly specialize in?

While commercial banks mostly specialize in short-term business credit, they also make consumer loans and mortgages, and have a broad range of financial powers. Their corporate charters and the powers granted to them under state and federal law determine the range of their activities.

What is the main function of commercial bank quizlet?

One of the primary functions of a commercial bank is accepting deposits, allowing customers to deposit and save money. One of the primary functions of a commercial bank is making advances, which allows customers to borrow money (loans, overdrafts, mortgages, credit cards).

What is the major role of a commercial bank quizlet?

Coming to the question, the primary goal of a commercial bank is to generate more revenue from its lending activities and then pay it to depositors with interest. In simple terms, banks earn from the difference that they earn from the interest income from loans and interest expenses that they pay to depositors.

Who protects commercial banks?

The Federal Deposit Insurance Corporation (FDIC) is an independent federal government agency which insures deposits in commercial banks and thrifts. Federal deposit insurance is mandatory for all federally-chartered banks and savings institutions.

What is the role of the bank?

Providing Loans: Banks lend money to individuals and businesses for various purposes, such as home mortgages, business expansion, or personal loans. Payments and Settlements: Banks enable transactions through various payment methods, like checks, debit/credit cards, and electronic transfers.

What is commercial money?

The term commercial bank money describes the portion of a currency which is made of book money – debt generated by commercial banks. It is the opposite of the terms central bank money, base money and sovereign money, which denote legal tender issued by a central bank or monetary authority.

What does commercial only mean at the bank?

Commercial banks serve much larger customers than the standard retail bank, which is designed for individual account holders and some small businesses. These large banks are designed to handle the needs that businesses have for large loans, lines of credit, and deposit accounts.

What type of questions are asked in bank interview?

Whether you are preparing to interview a candidate or applying for a job, review our list of top Banker interview questions and answers. What is the highest volume of clients you have served at your previous bank? How did you manage multiple clients? Can you describe the process of authorizing a loan?

What is a weakness you have?

Examples of weaknesses you might want to cite during your interview include: Getting caught up in details. Unable to let go of projects. Trouble saying “no” to others. Managing missed deadlines.

How to introduce yourself in interview?

When introducing yourself to a recruiter, be polite and confident. Start with a greeting, state your name, and briefly mention your current job title or area of expertise. Highlight your most relevant experience and skills that match the job requirements. Mention any significant achievements or certifications.

What are the two main functions of a commercial bank?

Answer: The primary functions of a commercial bank are accepting deposits and also lending funds. Deposits are savings, current, or time deposits. Also, a commercial bank lends funds to its customers in the form of loans and advances, cash credit, overdraft and discounting of bills, etc.


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