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. 

This question was previously asked in
SSC GD Constable (2024) Official Paper (Held On: 21 Feb, 2024 Shift 4)
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  1. Neither A nor B 
  2. Only A
  3. Both A and B
  4. Only B

Answer (Detailed Solution Below)

Option 1 : Neither A nor B 
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Detailed Solution

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The correct answer is Neither A nor B.

Key Points

  • Option 1 is the correct answer because both statements A and B are correct.
  • Statement A correctly identifies commercial banks as part of the money-creating system of the economy.
  • Statement B accurately describes the primary functions of commercial banks, which include accepting deposits from the public and lending out funds to borrowers.

Additional Information

  • Commercial banks play a crucial role in the economy by providing financial services that facilitate economic activities.
  • They help in the mobilization of savings by accepting deposits and channeling those funds into productive uses through loans and advances.
  • Commercial banks also provide various other services such as payment and settlement services, foreign exchange transactions, and investment services.
  • These institutions are regulated by the Reserve Bank of India (RBI) to ensure their stability and the overall health of the financial system.
Latest SSC GD Constable Updates

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-> The Staff Selection Commission released the SSC GD 2025 Answer Key on 26th June 2025 on the official website.

-> The SSC GD Notification 2026 will be released in October 2025 and the exam will be scheduled in the month of January and February 2026.

-> Now the total number of vacancy is 53,690. Previously, SSC GD 2025 Notification was released for 39481 Vacancies. 

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