Multiple choice

Which one of the following can be described as a secondary function of commercial banks in India?

  1. Overdraft facilities

  2. Discounting Bills of Exchange

  3. Mosey at Call

  4. Purchase and Sale of Securities

  5. Remittance of Funds
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Purchase and Sale of securities (Government bonds, securities) is a secondary function of commercial banks, also called agency functions or utility functions. Primary functions are accepting deposits and lending. Overdraft facilities, discounting bills, money at call, and remittances are all primary banking functions, not secondary.

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