Commercial Applications
Commercial banks act as trustees and executors for their customers. This is a/an …………… function of Commercial bank.
- General utility
- Agency
- Marketing
- Public Relations
Banking
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Answer
Agency
Reason — As an agent of its customers, a commercial bank performs several functions including (a) collecting receipts, (b) making payments, (c) buying and selling securities, and (d) acting as trustees and executors and transferring funds. Hence, acting as trustees and executors is classified under Agency Functions of commercial banks. (General utility functions include issuing letters of credit, underwriting, safe custody of valuables and providing credit information.)
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