Functions of Commercial Banks

What is the primary reason for fixed deposits being liked by depositors?

What is the consequence of withdrawing more than the specified amount without prior notice?

How do fixed deposits differ from current accounts in terms of withdrawal?

What is the most common way of lending by commercial banks as mentioned in the text?

Why are fixed deposits also referred to as time deposits?

What is the main incentive for depositors to opt for an overdraft facility in a current account?

What type of lending allows the borrower to pay interest only on the used amount?

Which type of lending involves the bank deducting its commission before paying the present price of a bill to the holder?

In which type of lending can the borrower withdraw small sums of money through cheques, but not exceed the credit limit?

Which type of lending provides a very liquid asset that can be quickly turned into cash?

What is a distinguishing feature of an Overdraft compared to Cash Credit?

What is a key characteristic of Discounting Bills of Exchange in terms of bank investment?

What is the primary reason mentioned in the text for settling debts through cheques?

Which of the following is NOT mentioned as a secondary function of commercial banks?

What type of credit instrument is highlighted as the most developed in the money market?

Which service involves banks collecting dividends and interest on shares and debentures on behalf of customers?

What is a key aspect of the agency services provided by banks as mentioned in the text?

What is the significance of money at call and short notice for banks?

Which item constitutes the 'third line of defense' for banks?

Why are short-term bills like bills of exchange and treasury bills attractive to commercial banks?

What type of assets do investments include for banks?

Why are loans and advances considered the most profitable asset for banks?

Where does the item 'Acceptances and Endorsements' appear on a bank's balance sheet?

What are the three most important guiding principles for the distribution of assets in a bank?

Which item on the assets side is considered the 'first line of defense' for a bank?

What is the purpose of keeping money with the central bank or other commercial banks?

In what order are the various items on the assets side distributed?

What does 'Money at Call and Short Notice' include?

Why are loans to brokers and dealers considered easily convertible assets?