CUET Preparation Today
Which of the following is not a function of commercial banks ? |
Accepts deposits from the public Controls money supply Gives loans to the public Creates loans to the public |
Controls money supply |
The correct answer is option (2) : Controls money supply Controls money supply is not a function of commercial banks. The control of the money supply is typically a function of central banks, which set monetary policy to achieve economic goals such as price stability and full employment. Commercial banks play a role in the money supply through their lending and deposit activities, but the direct control and regulations of the money supply fall under the purview of the central bank. |
