The question was not well understood by most of the candidates. Many candidates wrote on all types of loans only. Others wrote on the functions of Commercial banks. The following are some of the points expected from the candidates.
- Acting as References: Commercial banks provide information on credit worthiness of their foreign partner/companies.
- Providing traveller’s cheques: They provide services to travellers by selling traveller’s cheques to them, reducing the risk of carrying cash.
- Discounting International Bill of Exchange They pay cash for bills of exchange before the bills mature.
- Giving letter of credits: They open letters of credit on behalf of their customers/clients etc.
