Advertisements
Advertisements
प्रश्न
How do banks mediate between those who have surplus money and those who need money?
उत्तर
A bank mediates between those who have surplus money and those who need money by allowing both to open accounts with it. Banks only keep about 15% of cash reserves to provide to people who come to withdraw money on a daily basis. Those with surplus money are encouraged to invest with the bank and are paid a certain rate of interest for the same. Those who need loans are required to pay interest on their loans. The difference between payment to lenders and receipt from borrowers comprises the bank’s earnings. Thus, the bank acts as a beneficiary for those with surplus money as well as those who need money.
APPEARS IN
संबंधित प्रश्न
Explain with an example, how credit plays a vital and positive role for development.
Why is it necessary for the banks and cooperative societies to increase their lending facilities in rural areas? Explain.
Why do we need to expand formal sources of credit in India?
Majority of the credit needs of the _________ households are met from informal sources.
How can the problem of unemployment be eradicated in India? Explain any three ways.
“Credit can play a positive role.” Justify the statement with arguments.
“Credit can play a negative role.” Justify the statement with arguments.
Answer the following question.
Describe the bad effects of informal sources of credit on borrowers.
Explain the importance of formal sector loans in India.
Answer the following question.
Give any two examples of the informal sector of credit.
