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State five services a commercial bank renders to customers – List five duties of a customs authority

a) State five services a commercial bank renders to customers.

b) List five duties of a customs authority.

Explanation

a Services rendered by Commercial Banks to Customers:

  • Acceptance of deposit: commercial banks accept deposits from customers for safe custody. i.e savings, current and deposits accounts.
  • Safekeeping of Valuables: commercial banks keep valuable goods like gold, jewellery, wills, deeds etc on behalf of customers.
  • Commercial banks lend money to customers on a long and short term basis.
  • Agents of payments: it acts as agents of payment for customers. Commercial banks accept and honour cheques drawn on them.
  • Issuance of Travellers’ cheques: commercial banks issue traveller’s cheques to customers who are travelling outside the country.
  • Advice to customers: commercial banks advise customers on matters that affect their businesses.
  • Solving the problem of foreign Exchange: commercial banks help their customers to get foreign exchange
  • They Act as Referee: commercial banks act as referees for their customers when their business partners are in doubt about their financial credibility.
  • Discounting Bills of Exchange: commercial banks discount bills of exchange that is, they pay cash for bills of exchange before the bills mature.
  • Commercial Banks issue bank statements to customers at regular intervals.

(b)  Duties of a Customs Authority

  • A Customs Authority collects taxes in terms of imports, exports and excise duties on behalf of the government.
  • A Customs Authority enforces import and export restrictions and prohibition by the government.
  • A Customs Authority supervises bonded warehouse where goods whose duties have not been paid are kept.
  • A Customs Authority collects data for the compilation of a country’s international trade statistics which gives a picture of a country’s balance of trade and payments.
  • Provision of quarantine facilities – it provides appropriate quarantine facilities for the importation of live stocks.
  • Completion of documents – the Customs ensure that custom declaration forms and other documents are completed.
  • Issuance of Clearance Certificates – it issues clearance certificates for goods whose duties have been paid.