Match the items of List - I with List - II in terms of functions of a bank : Codes : (a) (b) (c) (d)List - I List - II (Activities) (Functions) (a) Underwriting (i) Primary Functions (b) Transfer of funds (ii) Granting Advances (c) Overdraft (iii) Utility Functions (d) Recurring Deposits (iv) Agency Functions
(iii) (iv) (ii) (i)
Functions of a commercial bank are grouped as primary functions (accepting deposits and granting loans and advances) and secondary functions, which are split into agency functions (acting for customers) and general utility functions (services offered to the public at large).
(a) Underwriting of shares and debentures is a general utility service a bank offers to companies, so (a) matches (iii) Utility Functions.
(b) Transfer of funds (remittances by drafts, mail or telegraphic transfer) is done by the bank on behalf of its customers, i.e. as their agent, so (b) matches (iv) Agency Functions.
(c) An overdraft lets a current-account holder draw beyond the balance; it is a form of credit, so (c) matches (ii) Granting Advances.
(d) Recurring deposits are a type of deposit account, and accepting deposits is a primary function, so (d) matches (i) Primary Functions.
The matching is therefore (a)-(iii), (b)-(iv), (c)-(ii), (d)-(i).
Hence, the answer is (iii) (iv) (ii) (i).
Similar Questions
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Assertion (A) : Taking of deposits and granting of loans single out banks.
Reasoning (R) : Banks act as intermediaries when they mobilize savings from surplus units to shortage units in order to finance productive activities.
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(ii) Reserve Bank Policies
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(iv) Social-sector lending
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a b c d
Select the major principles which banks strive to incorporate in their working from the following :
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Important Questions from Commercial Banks
Which of the following banks is the largest commercial bank in India?
Which one of the following is a primary function of commercial banks?
Which of the following is/are function(s) of a commercial bank?
- Accepting deposits
- Giving loans
- Payments and settlements
Imposition of price _______ below the equilibrium price leads to excess _______.
- Which of the following are liabilities of commercial banks ?
I. Capital and reserves
II. Cash and balances with RBI
III. Investments
IV. Borrowings
Codes :
