Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

Banks are defined as the institutions dealing with credit. Which of the following depicts the most important features of bank?

Options:

Accepting deposits and lending loans

Creating money and selling securities

Increasing the economic growth and lending surplus money

Issuing instruments and infusion of money

Correct Answer:

Accepting deposits and lending loans

Explanation:

The 2 most important features of a bank are:

  1. Accepting the deposits
  2. Lending loans

Apart, from that banks perform other functions as well like issuing securities, insurance etc., discounting of bills of exchange, transfer of money and other miscellaneous functions.