Describe methods which may be used by commercial banks to advance money to customers.
Answer Text: -Overdraft facilities: a customer who operates a current account with a commercial bank may require the bank to allow him overdraft on his account-Discounting of bills of exchange/ promissory notemay request a commercial bank to discount/ pay the bill/note before maturity-Formal loans: an individual can apply to a commercial bank for a loan-Plastic money: Credit card holders may present such cards and have credit advanced to them by commercial banks.-Treasury bills:Banks advance to the government on exchange of the bill or bond.