5 Questions
What is the core business of a banking company?
The core business of a banking company is accepting deposits and lending to borrowers or investing money in securities to earn returns.
According to Section 5(b) of the Banking Regulation Act, 1949, how is banking defined?
Banking is defined as accepting deposits of money from the public for the purpose of lending or investment, repayable on demand or otherwise and withdrawable by cheque, draft, order, or otherwise.
What is the profit for a banking company?
The profit for a banking company is the difference between interest paid and interest earned.
What are agency services provided by banks?
Agency services provided by banks include collection of cheques, drafts, and trade bills on behalf of customers.
What are the other types of activities undertaken by banks?
In addition to their core business, banks also undertake other activities to serve their clientele better and earn additional revenue from banking services offered.
Test your knowledge on the fundamentals of banking with this quiz. Learn about the definition of banking, its role as a financial intermediary, and the concept of accepting deposits and lending to borrowers.
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