n NISM Certifications
X NISM Series X
Medium

What is a key function of the banking system in an economy?

Practice question from NISM Series XA- Investment Adviser (Level 1) Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Guarantee funds for economic activity

  2. B

    Provide returns to investors

  3. Provide credit at efficient cost

    Correct answer

  4. D

    All of the above

Why this is the answer

Banks primarily mobilize deposits and extend credit at reasonable costs, supporting economic growth efficiently.

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