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Sec3- Banks (Commercial Banks (Functions (to accept deposits (Current…

- - - - Current account - easy and immediate access. Interest is not paid on it. Usually used to receive and make payments
        Deposit or Time account- a period of notice required before withdrawal. Used as a way of saving.
    - - Overdraft- more than what they have. Usually high interest. To bridge short term gaps between expense and income.
        Loan- taken for particular purpose and particular period of time. Rate of interest lower than that on an overdraft. Collateral required.
    - - Takes from lenders, gives to borrowers
        Payments can be made using cheques, standing orders, direct debits, debit/credit cards and online banking
    - - Traveller cheques
        exchange foreign currency
        leave important things in a locker
        administration of wills
        advice and help with financial matters like tax and purchase and sale of shares
- - - - Tax revenue goes into govt. accounts
        Payments by the govt. are paid out of this account
    - - they settle debts between each other from their accounts here
    - - other banks which are temporarily short of cash
    - - total amounts the govt. owes
        by issuing govt. securities-govt. bonds
    - - in order to influence exchange rate if needed
    - - prints and destroys notes
        authorises minting of coins
    - - to keep inflation low and steady
        influence interest rates and money supply
    - - regulate and supervise
    - - at meeting with other Central banks and international organisations