Question : Which of the following is not the function of a commercial bank?
Option 1: Accepting deposits
Option 2: Money supply
Option 3: Agency function
Option 4: Credit creation
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Correct Answer: Money supply
Solution : The correct option is Money Supply.
A commercial bank's duty is not to directly manage or set the amount of money in an economy. Rather, the central bank of a nation affects the money supply through its operations. As part of its monetary policy, the central bank, such as the Reserve Bank of India in India, can regulate and control the money supply.
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