Commercial banks provide which of the following services?

The correct answer highlights the fundamental role that commercial banks play in the financial system. Commercial banks are primarily designed to provide basic banking services, which include accepting deposits, providing checking accounts, and offering a range of loans, such as personal loans, mortgages, and business loans. These services are essential for both individual consumers and businesses, as they facilitate everyday financial transactions, savings, and access to credit.

While investment banking and trade financing are crucial services within the broader financial market, they fall outside the primary scope of what commercial banks typically offer. Investment banking is more focused on underwriting securities and facilitating mergers and acquisitions, which is generally handled by specialized financial institutions. Similarly, trade financing deals with international trade transactions and often involves different kinds of financial institutions or banks specialized in that area.

Although savings accounts and loans are indeed part of commercial banks’ offerings, the assertion that they provide only those services is misleading. Commercial banks offer a wide array of products beyond just savings accounts and low-interest loans, making them integral to the financial and economic activities of both individuals and businesses. This broad perspective encompasses diverse financial needs and highlights the versatility of commercial banks in serving the general public.