Read the following about Commercial Banks in India.
A. Commercial banks are the other type of institutions which are a part of the money-creating system of the economy.
B. They accept deposits from the public and lend out part of these funds to those who want to borrow.
Identify the INCORRECT statement/statements.
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Neither A nor B.
- Both statements provided about commercial banks in India are correct.
- A. Commercial banks are indeed part of the money-creating system of the economy. They play a crucial role in the financial system by creating money through lending activities.
- B. It is accurate that commercial banks accept deposits from the public and lend out a portion of these funds to borrowers.
- Therefore, there are no incorrect statements among the ones given.