Question

Identify one benefit and one problem for a commercial bank when it increases the amount of its bank capital?

Answer 1

Answer:

Like wholesale companies, the commercial banks buy in bulk and sell to the public at a discount. These discounts may offer free checking, no fees while opening savings or checking accounts. They also provide the customers with low interest rates on real estate loans.

Commercial banking or business accounts are often more expensive than traditional bank accounts. Banks may charge fees for night deposits, for processing a certain number of checks and for the payroll services.