MP Board · Class 11 · Business Studies · Business ServicesWhat is the principal function of commercial banks?
Step-by-Step Solution
Accepting deposits from the public and granting loans to individuals and businesses is the principal function of commercial banks.
Detailed Options Breakdown
Option : Issuing currency notes
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
Option 1: Accepting deposits and granting loans (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Formulating monetary policy
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
Option 3: Regulating stock exchanges
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
💡 Study Guide: This question tests core syllabus concepts from Business Services. For formulas, key summaries, and mock exam reference guides, read the full Business Services Revision Notes.