Chapter: Money Market and Capital Market in India· Economics

Choose the correct option: Commercial banks act as intermediaries in the financial system to _____.(a) make profits(b) accelerate the country’s economic growth(c) mobilise the saving and allocating them to various sectors of the economy(d) control th…

Q.1 (A) (v) Choose the correct option: Commercial banks act as intermediaries in the financial system to _____.

(a) make profits
(b) accelerate the country’s economic growth
(c) mobilise the saving and allocating them to various sectors of the economy
(d) control the credit

A. only a

B. a and b

C. b and c

D. a, b, c and d

Doubtly Asked 29 Oct 2026 Board exam · July 2024 hsc 12th Save WhatsApp Report

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Answer: (3) b and c

As financial intermediaries, commercial banks mobilise savings of the public as deposits and allocate them as loans to agriculture, industry, trade and services. This channelling of savings into investment accelerates economic growth. Making profits is the bank’s own business motive, not its role as an intermediary, and credit control is the function of the central bank (RBI), not of commercial banks.

Doubtly AI · 29 Oct 2026 AI-verified · Nov 2026 Report

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Choose the correct option: Commercial banks act as intermediaries in the financial system to _____.(a) make profits(b) accelerate the country’s economic growth(c) mobilise the saving and allocating them to various sectors of the economy(d) control th…

1 answer

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