Explain the functions of commercial bank | Class 11 Business Studies Chapter Business Services, Business Services NCERT Solutions

Welcome to the NCERT Solutions for Class 11 Business Studies - Chapter Business Services. This page offers a step-by-step solution to the specific question from Exercise 3: Extra Questions, Question 4: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 4:

Explain the functions of commercial banks.

Answer:

  • Commercial banks perform the following key functions:
    • Accepting deposits: They accept savings, current, and fixed deposits from customers and provide interest on them.
    • Providing loans: They offer various types of loans, including cash credit and overdraft facilities, earning interest in return.
    • Fund transfer: Banks facilitate fund transfers through instruments like demand drafts, NEFT, and RTGS.
    • Cheque clearing: They act as clearinghouses for cheques and other negotiable instruments.
    • Value-added services: These include locker facilities, investment services, and utility bill payments.


Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

  • Read the question carefully and focus on the core concept being asked.
  • Reference examples and data from the chapter when answering questions about Business Services.
  • Review previous year question papers to get an idea of how such questions may be framed in exams.
  • Practice answering questions within the time limit to improve your speed and accuracy.
  • Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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Welcome to the NCERT Solutions for Class 11 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Extra Questions, Question 4: Explain the functions of commercial banks.....