Commercial banks primarily help in:
A) Currency printing
B) Monetary policy making
C) Mobilizing savings and lending credit
D) Setting tax rates
Which of the following is a key function of commercial banks?
A) Tax collection
B) Issuing currency notes
C) Providing loans and accepting deposits
D) Regulating financial markets
Commercial banks help economic growth by:
A) Controlling inflation
B) Reducing foreign trade
C) Channeling funds from savers to investors
D) Printing money
Which of the following services is provided by commercial banks?
A) Defense spending
B) Credit creation
C) National budgeting
D) Foreign policy making
What is the main source of profit for commercial banks?
A) Service charges on accounts
B) Interest earned on loans
C) Government grants
D) Printing money
Which type of account is commonly used for daily transactions?
A) Fixed deposit account
B) Savings account
C) Current account
D) Recurring deposit account
Commercial banks help businesses by:
A) Reducing government regulations
B) Providing financial assistance and loans
C) Increasing interest rates
D) Reducing employment opportunities
What happens when commercial banks increase lending?
A) Money supply decreases
B) Economic activity rises
C) Interest rates increase
D) Inflation decreases
Which financial tool is used by commercial banks to promote savings?
A) Interest on deposits
B) High transaction fees
C) Foreign currency reserves
D) Government bonds
How do commercial banks contribute to monetary stability?
A) By controlling government spending
B) By regulating stock markets
C) By ensuring smooth financial transactions
D) By printing more money
Commercial banks provide which of the following digital banking services?
A) Mobile banking
B) Import regulations
C) Government taxation
D) Oil price controls
Which type of bank primarily deals with deposits and loans for the public?
A) Central bank
B) Commercial bank
C) Investment bank
D) Development bank
How do commercial banks support trade and commerce?
A) By imposing tariffs
B) By providing trade finance and credit
C) By restricting capital movement
D) By controlling export taxes
What impact do commercial banks have on employment?
A) Reduce job opportunities
B) Facilitate business expansion and job creation
C) Increase government employment
D) Decrease labor market efficiency
Which service is NOT provided by commercial banks?
A) Foreign exchange transactions
B) Infrastructure development
C) Loan disbursement
D) Issuing currency notes
What role do commercial banks play in investment?
A) Provide funds to businesses and individuals
B) Control stock prices
C) Increase inflation
D) Reduce capital markets
A major challenge faced by commercial banks is:
A) Cybersecurity threats
B) Increasing agricultural output
C) Regulating trade agreements
D) Controlling oil prices
Which of the following is a method of credit creation by banks?
A) Lending more than deposits
B) Printing more currency
C) Increasing tax collection
D) Reducing money supply
Which factor affects commercial bank lending?
A) Inflation rate
B) Population growth
C) Weather conditions
D) Political debates
How do commercial banks promote entrepreneurship?
A) By offering loans to startups and businesses
B) By restricting foreign investment
C) By increasing tax rates
D) By controlling land prices
Why are commercial banks important for financial inclusion?
A) They provide banking services to underserved populations
B) They control government spending
C) They set national trade policies
D) They increase tax rates
What is the main function of a commercial bank in money supply?
A) Printing money
B) Controlling fiscal policy
C) Credit creation
D) Increasing inflation
Which economic sector benefits most from bank credit?
A) Agriculture
B) Manufacturing
C) Services
D) All of the above
How do commercial banks help in poverty reduction?
A) By providing microfinance and small loans
B) By reducing agricultural subsidies
C) By restricting foreign trade
D) By lowering interest rates to zero
What is a major challenge in rural banking?
A) High cost of services
B) Excess availability of funds
C) Over-banking in villages
D) Low interest rates
Which type of loan is typically provided by commercial banks for home purchases?
A) Business loan
B) Auto loan
C) Mortgage loan
D) Student loan
Which technology is revolutionizing commercial banking?
A) Blockchain
B) Typewriters
C) Paper-based ledgers
D) Barter system
What is a commercial bank’s role in international trade?
A) Providing trade finance and foreign exchange services
B) Controlling import quotas
C) Managing diplomatic relations
D) Regulating stock exchanges
Which financial instrument is commonly offered by commercial banks?
A) Treasury bonds
B) Bank deposits and loans
C) Trade tariffs
D) Land taxes
Which risk is most common in commercial banking?
A) Credit risk
B) Climate risk
C) Oil price volatility
D) Cultural risk
