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Question
A bank is an institution which accepts _____ from the public and advances ______.
Options
Deposits, loans
Loans, deposits
Cash, cash
Loan, loan
Solution
A bank is an institution which accepts deposits from the public and advances loans.
Explanation:
- A bank is different from other financial institutions, which may accept deposits and make advances but cannot create credit.
- It purchases and sells money, and transacts other related business.
- Thus, a bank is an institution that accepts deposits from the public and advances loans.
RELATED QUESTIONS
Given below is a page from the passbook of a saving bank account that Mr. Sharma has with SBI. If the bank gives interest at 6%pa, find
The principal amount in January, February and March which will be considered for interest for interest calculation.
Given below is a page from the passbook of a saving bank account that Mr. Sharma has with SBI. If the bank gives interest at 6%pa, find
The interest she gets at the end of March.
| Date | Particulars | Withdrawls | Deposite | Balance |
| 05.01.08 | By cash | 15500.00 | 15500.00 | |
| 10.01.08 | To cheque | 4800.00 | 10700.00 | |
| 15.02.08 | To cheque | 5300.00 | 5400.00 | |
| 08.03.08 | By cash | 19200.00 | 24600.00 | |
| 17.03.08 | To cheque | 7400.00 | 32000.00 |
Anita opens an S.B. account in State Bank of India on August 1, 1983 with Rs. 100. She deposits Rs. 100 on the first or second day every month till and including February 1, 1984. In between she withdrawal Rs. 200 on October 17, 1983 and also on January 13, 1984. Write the entries of the passbook.
What is Banking?
A bank is a ______ which collects money from the public in the form of deposits and lends the same to the borrowers.
