SSC Stenographer 2022 PYQ — Question 104

SSC Stenographer - 18 Nov 2022 - Shift 1 • General Awareness • Q104

Which of the following is NOT the function of a commercial bank?

Show answer & explanation

Correct answer: B

Explanation

 The correct answer is option 2 i.e. Money supply

  • The function NOT associated with a commercial bank among the options provided is "Money supply."
  • While commercial banks play a crucial role in accepting deposits, performing agency functions like facilitating payments and transfers, and creating credit through lending activities, the direct control of the money supply within an economy typically falls under the purview of a central bank, such as the Reserve Bank of India (RBI) in India or the Federal Reserve in the United States.
  • Central banks have the authority to regulate the money supply to maintain price stability and achieve economic objectives, while commercial banks primarily deal with financial intermediation and customer services.