What is a commercial bank answer? (2024)

What is a commercial bank answer?

A commercial bank is a financial institution that provides services like loans, certificates of deposits, savings bank accounts bank overdrafts, etc. to its customers. These institutions make money by lending loans to individuals and earning interest on loans.

What is a commercial bank quizlet?

Commercial bank. financial institution that offers checking accounts, demand deposits, business and personal loans, savings vehicles and a variety of other related financial services.

What is the best description for a commercial bank?

The commercial bank definition describes a financial institution tasked with accepting customer deposits for safekeeping purposes, granting loans to individuals and businesses at an interest rate, and providing basic financial products and services like certificates of deposits and savings accounts.

What is the goal of the commercial bank ___________?

Answer and Explanation: The correct option is (a) maximize the wealth of its shareholders. A commercial bank is a profit-seeker. Its main goal is to earn profits so that its shareholders see an appreciation in the amount that they have invested.

What is a bank answers?

A bank is a financial institution that is licensed to accept checking and savings deposits and make loans. Banks also provide related services such as individual retirement accounts (IRAs), certificates of deposit (CDs), currency exchange, and safe deposit boxes.

What are commercial banks simple?

What Is a Commercial Bank? The term “commercial bank” refers to a financial institution that accepts deposits, offers checking account services, makes various loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

What are commercial banks an important source of _____?

Answer & Explanation. Commercial banks are an important source of : c. short-term loans and term loans.

What is a commercial bank also known as?

Commercial banks are also called 'Joint stock banks' because they are organised in a manner similar to joint stock companies.

What are 5 functions of a commercial bank?

What is unique about a commercial bank?

Commercial banks have different customers and, therefore, different services from retail and investment banks. Retail banks specifically serve individuals and households. Their offerings include things like basic deposit accounts, credit cards, auto loans, lines of credit, and mortgage loans.

How do commercial banks make money?

They earn interest on the securities they hold. They earn fees for customer services, such as checking accounts, financial counseling, loan servicing and the sales of other financial products (e.g., insurance and mutual funds).

Who protects commercial banks?

The FDIC insures deposits; examines and supervises financial institutions for safety, soundness, and consumer protection; makes large and complex financial institutions resolvable; and manages receiverships.

Why should I use a commercial bank?

Using a commercial bank comes with plenty of benefits. This includes the ability to get loans, safe keeping of funds, and electronic transactions. These things are important to get from a bank.

What is the main role of a bank?

Although banks do many things, their primary role is to take in funds—called deposits—from those with money, pool them, and lend them to those who need funds. Banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).

What do banks call tellers?

A bank teller (often abbreviated to simply teller) is an employee of a bank whose responsibilities include the handling of customer cash and negotiable instruments. In some places, this employee is known as a cashier or customer representative.

What are the 5 most important banking services?

The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and Debit Cards, Overdraft services. You can read about the Types of Banks in India – Category and Functions of Banks in India in the given link.

Which is an example of an advantage of commercial banks?

Location: Commercial banks are located in most of the locations. Discounts: Commercial banks offer services to the customer at discounted rates. Product offerings: Commercial banks offer more product offerings to the customers in the form of loans, credit cards, fixed deposits, recurring deposits, mutual funds etc.

Which of the following is an example of a commercial bank?

Wells Fargo and Chase are examples of commercial banks as they provide these services.

What is accepting deposits?

Accepting Deposits means accepting money or funds received as a Deposit if that money or funds are: lent to other Persons; or. used to finance wholly, or partly, any other activity of the Person accepting the Deposit.

What are three ways banks make money?

What are the types of commercial banks?

Commercial Banks can be further classified into public sector banks, private sector banks, foreign banks and Regional Rural Banks (RRB). On the other hand, cooperative banks are classified into urban and rural.

Is a commercial bank the most common?

A commercial bank is the most common depository institution which lends, issues, borrows, and protects money.

What is the difference between a bank and a commercial bank?

Central bank can be called the apex bank, which is responsible for formulating the monetary policy of an economy. Commercial banks, on the other hand, are those banks that help in the flow of money in an economy by providing deposit and credit facilities.

What is the difference between a commercial bank and a regular bank?

The key difference between retail and commercial banking is who the products are designed for. While retail banks service individuals, communities, small businesses, and families, commercial banks focus on larger companies, government entities, and institutions.

Who owns commercial banks?

Commercial Bank

A financial institution that is owned by stockholders, operates for a profit, and engages in various lending activities.