(a) State four steps that can be taken by a customer opening a current account. (b) Explain six functions of commercial banks.

(a) Four steps a customer takes to open a current account

1. Obtain and complete the account opening form: The customer collects the current account application form from the bank and fills in his personal details.
2. Provide references and required documents: He supplies two respectable referees who already operate accounts, together with passport photographs and means of identification.
3. Make an initial deposit: He pays in the minimum opening balance required by the bank as an initial deposit.
4. Complete a specimen signature card and receive account tools: He records his specimen signature on the mandate card, and after verification the bank opens the account and issues him a cheque book and pay-in slips.

(b) Six functions of commercial banks

1. Acceptance of deposits: They receive and keep money for customers in current, savings and fixed deposit accounts.
2. Granting of loans and overdrafts: They lend money to customers and allow overdraft facilities to help finance business and personal needs.
3. Provision of means of payment: They provide cheques, standing orders, credit transfers and electronic payment services for settling debts.
4. Safe-keeping of valuables: They keep customers' valuables and important documents in safe custody through their strong rooms and safe deposit boxes.
5. Agency and foreign exchange services: They act as agents for customers by paying and collecting money, buying and selling shares, and providing foreign exchange for international trade.
6. Provision of financial advice and other services: They give advice on investment, provide references, issue travellers' cheques and act as executors and trustees.