Class 12 Macroeconomics
,Commercia
l Banks
Commercial Bank is an institution
that performs the functions of
accepting deposits, granting loans,
and making investments, to earn
profits. State Bank of India (SBI),
Punjab National Bank (PNB), and
Canara Bank, are some examples
of Commercial Banks in India.
, Commercial It can be very well assumed that the household
Banks – sector saves a part of its income which is made
Backbone of available to the productive sector for further
investment.
an Economy
Commercial banks act as financial intermediaries
whose main function is to collect savings from the
household sector and lend them to the productive
sector.
The rate of interest at which commercial banks
accept deposits is known asthe 'borrowing rate'
and the rate at which banks lend out their
reserves to investors is called the 'lending rate'.
The difference between the two rates, known as
„spread‟, is the profit earned by the banks.
,Commercia
l Banks
Commercial Bank is an institution
that performs the functions of
accepting deposits, granting loans,
and making investments, to earn
profits. State Bank of India (SBI),
Punjab National Bank (PNB), and
Canara Bank, are some examples
of Commercial Banks in India.
, Commercial It can be very well assumed that the household
Banks – sector saves a part of its income which is made
Backbone of available to the productive sector for further
investment.
an Economy
Commercial banks act as financial intermediaries
whose main function is to collect savings from the
household sector and lend them to the productive
sector.
The rate of interest at which commercial banks
accept deposits is known asthe 'borrowing rate'
and the rate at which banks lend out their
reserves to investors is called the 'lending rate'.
The difference between the two rates, known as
„spread‟, is the profit earned by the banks.
