Banking Practice Exam

Commercial banks are recognized for their diverse range of financial services, which is a hallmark characteristic of their operations. These institutions not only accept deposits but also provide various services such as issuing loans, facilitating transactions, offering credit cards, and providing investment products. This broad spectrum of offerings allows commercial banks to cater to different customer needs, from individual consumers to small businesses and large corporations.

While some banks may focus more on one area than another, the strength of a commercial bank lies in its ability to serve different segments of the market. They are not limited to only accepting deposits or singling out personal loans; rather, they engage in a wide array of financial activities that enhance customer convenience and financial management.

The focus on a diverse portfolio also allows commercial banks to diversify their income sources, reducing reliance on a single aspect of banking and contributing to overall financial stability.