[amp_mcq option1=”The mobilization of savings” option2=”The extending Loans and Advances” option3=”Issuing Currency Notes” option4=”Financing Priority Sectors” correct=”option3″]
The correct answer is C. Issuing Currency Notes.
Commercial banks are financial institutions that accept deposits from customers and use those deposits to make loans to other customers. They also provide other services, such as checking and savings accounts, and investment products.
One of the main functions of commercial banks is to mobilize savings. This means that they collect money from people who want to save their money, and then they use that money to make loans to other people who want to borrow money. This helps to keep the economy running smoothly by providing a way for people to save their money and for businesses to get the money they need to grow.
Another important function of commercial banks is to extend loans and advances. This means that they lend money to people who need it, such as businesses that need to buy new equipment or people who need to buy a house. This helps to stimulate the economy by providing businesses and individuals with the money they need to invest and spend.
Commercial banks also provide a variety of other services, such as checking and savings accounts, and investment products. These services help people to manage their money and to save for the future.
Issuing currency notes is not a function of commercial banks. This is the responsibility of the central bank, which is the government’s bank. The central bank is responsible for maintaining the stability of the currency and for ensuring that there is enough money in circulation to meet the needs of the economy.