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प्रश्न
State the differences between a loan and an overdraft.
उत्तर
| Loan | Overdraft |
| Opened against the borrower's name, with loans available for short, medium, and long maturities. | When an account holder requires credit in excess of his or her deposit amount, he or she is allowed to borrow the excess amount for a short period. |
| This function is available to all types of account holders. It charges interest on the total borrowed amount. | It is distributed to current account holders. The bank charges interest only on the extra amount. |
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संबंधित प्रश्न
State two advantages of a bank account.
Briefly explain how Cash Reserve Ratio can be used to control credit.
What are current accounts?
Explain any two Lending Money functions of Commercial Banks.
Mention any two agency functions/services of a commercial bank.
Explain the term bank overdraft.
Write short notes on the primary functions of commercial banks.
Which of the following is not the function of commercial bank?
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Commercial Banks keep only a fraction of deposits as Cash Reserves and use the remaining deposits for given loans, etc.
Reason (R): All the depositors of Commercial Banks do not approach the banks for withdrawal of money at the [iame time and also they do not withdraw the entire amount in one go.
Mention primary functions of commercial banks.
