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Accepting deposits and lending money is the ________ function of commercial banks.

  • Accepting deposits and lending money is the Primary function of commercial banks.
  • Commercial banks accept various types of deposits, including current deposits, savings deposits, and fixed deposits, from individuals and businesses, and use these deposits to make loans to borrowers.
  • The interest rate on loans is typically higher than the interest paid on deposits, and the difference between the two is the bank's profit.
  • In addition to accepting deposits and lending money, commercial banks also offer a range of other financial services to their customers, such as issuing credit cards, providing trade finance services, and offering various types of insurance products.
  • However, accepting deposits and lending money remain the core activities of commercial banks.