Which of the following is not a function of a commercial bank?
Correct answer: D. Banker to the government
- A. Accepting public deposits
- B. Granting loan and advances
- C. Undertaking agency functions
- D. Banker to the government
Explanation
Accepting deposits, lending and agency services are normal commercial-bank functions, whereas acting as banker to the government is primarily a central-bank function. The State Bank performs that role in Pakistan.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
Practise Macroeconomics
1,499 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Macroeconomics questions
Balance of payments of a country includes ?
Exchange rate of which of the following currencies falls because of persistent balance of payments deficit ?
From each according to his ability to each according to his need is the theoretical slogan of ?
When the State Bank wants to decrease money supply in the country, it _______________?
When a commercial bank creates credit its immediate effect is that it raises__________________?
The Liquidity Trap condition occurs at a_______________?