Choose the given statement that is true/false.

The main functions of banks are to accept deposits and advance loans.

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True

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Detailed Solution

The above statement is true.
Commercial banks accept savings, fixed, and current deposits from their clients. Commercial banks' primary duties include extending credit to businesses and individuals while making money off the interest earned. Banks typically offer their clients a variety of short- and long-term credit while keeping a small reserve for operating costs. Credit creation is one of the specialities of commercial banks. Banks create a line of credit in place of providing liquid cash and disburse the loan to a company or other commercial entity all at once. Short-term loans typically have lower loan amounts, and shorter repayment terms and are pledged without any security. They are additionally known as personal loans.

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