Q. Consider the following statements:
1.Both banks and non-bank financial institutions can accept deposits and provide loans.
2.Non-bank financial institutions allow depositors to withdraw funds using cheques.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Explanation:

  • Both banks and non-bank institutions may accept deposits and lend money.
  • Only banks allow depositors to withdraw funds using cheques; non-bank institutions do not offer this facility.

Source: Indian Economy (Ramesh Singh)

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