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प्रश्न
How is discounting of a bill of exchange a form of bank lending?
संक्षेप में उत्तर
उत्तर
- Discounting a bill of exchange is a type of bank lending in which the bank advances the value of the bill to the holder before its maturity date while deducting a discount fee (interest) for the service.
- When the bill matures, the bank takes the full amount from the drawee, thereby giving the holder a short-term loan.
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Commercial Banks: Functions
क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
संबंधित प्रश्न
Define a commercial bank.
Explain two methods adopted by Commercial banks to advance loans to the general public.
Distinguish between fixed deposit and demand deposit. (Any two)
What is meant by Discounting of a Bill of Exchange?
Distinguish between:
cash credit and loan.
Explain the term bank overdraft.
Differentiate between current deposit account and fixed deposit account.
Which is the primary function of Commercial Banks?
What is meant by demand deposits?
Explain how banks can advance loans through cash credit.
