Commercial Bank , Types of Account

Bank Services

​Lesson objectives:

i. definition of commercial bank.

ii. services of commercial bank.

iii. types of bank account.

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​Commercial Bank:

Commercial Banks are financial institutions that accept money and valuables from customers for safekeeping.

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​Commercial Bank

​Types of Bank Account

1. Current Account: is an account from which the owner can make a demand by issuing a cheque.

2. Fixed deposit account: is a special form of account where money not immediately needed is kept for a specified period of time at a fixed interest rate.

3. Savings account: is an account operated by low income earners to keep their money safe.

    Documents required to open savings account are: 2 passport photograph, utility bill, national I.D. etc.

​Cheque

Cheque is a written order to the bank to pay a specified person named on it

Link for video on cheque:​https://www.google.com/search?q=lesson+video+on+cheques&oq=lesson+video+on+cheque&aqs=chrome.1.69i57j33i160.11560j0j7&sourceid=chrome&ie=UTF-8#fpstate=ive&vld=cid:6e516199,vid:p2AjiVkJDuw

​Types of cheque

Bearer cheque

Order cheque

Uncrossed/open cheque

Crossed cheque

Ante-dated cheque

Post dated cheque

Stale cheque

​PARTIES TO A CHEQUE

1.     Payee: the person whose name is written on the cheque, that is the person to whom cheque is payable.

2.     Drawer: the owner of the current account, that is, the person who issued and signed the cheque.

3.     Drawee: the bank from where the money is cashed.

Multiple Choice

An account from which the owner can make a demand by issuing a cheque is ___

• Savings account

• Current account

• Fixed Deposit Account

• Overdraft

Multiple Choice

A financial institutions that accept money and valuables from customers for safekeeping is

• Central bank

• savings bank

• Commercial bank

• Development bank

Multiple Choice

A special form of account where money not immediately needed is kept for a specified period of time at a fixed interest rate is

• Fixed deposit account

• Interest account

• Savings account

• Current account

Multiple Choice

An account operated by low income earners to keep their money safe.

• Current account

• Deposit account

• Savings account

• Fixed Deposit account

Multiple Choice

The person to whom cheque is payable is

• Payee

• Drawer

• Drawee

• Bank

Multiple Choice

The person who issued and signed the cheque is __

• Payee

• Drawer

• Drawee

• Cashier

Multiple Choice

Money borrowed from the bank is called ____

• Loan

• Cash

• Overdraft

• Interest

Multiple Choice

When a cheque is stale, it means it has stayed in circulation more than___ months

• 6

• 5

• 3

• 4

Multiple Choice

The bank from where the money is cashed is

• Drawee

• Drawer

• Payee

• Counter

Multiple Choice

A written order to the bank to pay a named person on it is ____

• Draft

• Cheque

• Teller

• Receipt