Match the following. List-I (Activities) List-II (Functions) a. Underwriting 1. Primary functions b. Transfer of funds 2. Granting advances c. Overdraft 3. Utility functions d. Recurring deposits 4. Agency functions

The correct answer is: A. a-1, b-2, c-4, d-3.

Underwriting is a primary function of banks. It is the process of guaranteeing the issuance of securities by a company or government. Banks also provide transfer of funds services, which are utility functions. These services include check clearing, wire transfers, and online bill pay. Overdrafts are a type of loan that banks provide

to customers who have overdrawn their checking accounts. This is an agency function of banks, as they are acting on behalf of the customer to provide them with a loan. Recurring deposits are a type of savings account that allows customers to make regular deposits into their account. This is a utility function of banks, as it allows customers to save money on a regular basis.

Here is a more detailed explanation of each of the options:

• Underwriting is a primary function of banks. It is the process of guaranteeing the issuance of securities by a company or government. Banks underwrite securities by agreeing to purchase them from the issuer at a predetermined price. This helps to ensure that the securities are sold and that the issuer receives the funds it needs.
• Transfer of funds is a utility function of banks. It is the process of moving money from one account to another. Banks provide this service through a variety of channels, including check
  Subscribe on YouTube
  clearing, wire transfers, and online bill pay.
• Overdrafts are a type of loan that banks provide to customers who have overdrawn their checking accounts. This is an agency function of banks, as they are acting on behalf of the customer to provide them with a loan. When a customer overdraws their checking account, the bank will typically allow them to continue spending money up to a certain amount. The customer will then be charged interest on the amount they have overdrawn.
• Recurring deposits are a type of savings account that allows customers to make regular deposits into their account. This is a utility function of banks, as it allows customers to save money on a regular basis. Recurring deposits are often used to save for specific goals, such as a down payment on a house or a new car.