Discussion questions with best definitions.

1.     What is a commercial bank? What are the main functions performed by commercial banks? How far are they useful for economic development?

2.     State the kinds of commercial banks.

3.     What do you understand by a commercial bank's balance sheet? What specific information does it convey?

4.     What is the investment policy of a commercial bank? Explain the factors that constitute for formulating a suitable investment policy.

5.     What is credit creation? How banks create credit? What are the limitations of credit creation?

6.     Discuss the role of banks in a developing economy.