The three loan activities of the banks are: People have extra cash with them. Those having extra cash open a bank account in their name and deposit the surplus money there. Out of the total money deposited with the banks, 15% of it is kept as minimum cash balance to pay to the depositors who …
Explain Any Three Loan Activities of Banks in India. Read More »
Yes, it is true to say that Banks are efficient medium of exchange. People have extra cash with them. Those having extra cash open a bank account in their name and deposit the surplus money there. Out of the total money deposited with the banks 15% of it is kept as minimum cash balance to …
Banks Are Efficient Medium of Exchange. Support the Statement With Arguments. Read More »
The loan plays two different role in business: Credit plays a positive role when the borrower is able to return the loan amount on time and also made some profit with the use of that money. For example, Salim, a shoe manufacturer took a loan from different sources to complete the order of 3000 pair …
Illustrate With Examples the Role of Loan in Business. Read More »
If a shoe manufacturer wants to sell shoes and buy wheat, then first he has to look for a wheat-growing farmer who wants to buy shoes and needs to sell wheat. Money can make it easier to exchange the things. The shoe manufacturer can sell the shoes for money and that money can used to …
How Can Money Be Easily Exchanged for Goods and Services? Give an Example to Explain. Read More »
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 …
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 …
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 …
Credit plays a positive role when the borrower is able to return the loan amount on time and also made some profit with the use of that money. For example, Salim, a shoe manufacturer took a loan from different sources to complete the order of 3000 pair of shoes. In the end he delivered the …
Credit Has Its Own Unique Role for Development. Justify the Statement With Arguments. Read More »
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 …
Yes, it is true that the poor households still depend on informal source of credit. It is due to the following reasons: Banks are not present everywhere. Collateral is required by the formal sector loan providers. Many a time, the moneylenders know the borrowers personally and willing to pay the loan without any collateral.
