Economics

Describe the Utility of Cheque.

A Cheque is a paper that instructs the bank to pay a specific amount from the account holder’s account to the person in whose name the Cheque has been issued. Demand deposits are accepted as a means of payment because the depositors get the facility of Cheque against it, which is used to settle the …

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The Credit Activities of the Informal Sector Should Be Discouraged. Support the Statement With Arguments.

It is true to say that the credit activities of the informal sector should be discouraged. It is due to the following reasons: They charge high rate of interest in comparison to that of formal sector. Thus the cost of borrowing is high. Due to high cost of borrowing, the borrowers have to repay more …

The Credit Activities of the Informal Sector Should Be Discouraged. Support the Statement With Arguments. Read More »

Deposits With the Banks Are Beneficial to the Depositors as Well as to the Nation. Examine the Statement.

Those having extra cash open a bank account in their name and deposit the surplus money there. Their money is safe with the banks and they get some interest rate on the amount they have deposited. Out of the total money deposited with the banks, 15% of it is kept as minimum cash balance to …

Deposits With the Banks Are Beneficial to the Depositors as Well as to the Nation. Examine the Statement. Read More »

How Is Money Transferred From One Bank Account to Another Bank Account? Explain With an Example.

In modern times we have different options to transfer the money from one bank account to another such as through Cheque, draft, internet banking etc. A Cheque is a paper that instructs the bank to pay a specific amount from the holder’s account to the person in whose name the cheque has been issued. In …

How Is Money Transferred From One Bank Account to Another Bank Account? Explain With an Example. Read More »