If a person has to make a payment he issue a cheque for a specific amount in his name such a TPDDL. The TPDDL will deposit the cheque in their own account in the banks Thereafter, the money is transferred from one bank to another bank account in a couple of days. Thus, transaction takes place withoRead more
If a person has to make a payment he issue a cheque for a specific amount in his name such a TPDDL. The TPDDL will deposit the cheque in their own account in the banks Thereafter, the money is transferred from one bank to another bank account in a couple of days. Thus, transaction takes place without any payments of cash from one bank account to another bank account.
(a) Collateral is an asset that the borrow owns and uses this as a guarantee to a lenders until the loans is rapid. (b) If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment. (c) Property such as land titles, deposits with banks, livestocRead more
(a) Collateral is an asset that the borrow owns and uses this as a guarantee to a lenders until the loans is rapid.
(b) If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment.
(c) Property such as land titles, deposits with banks, livestock are some common examples of collateral used for borrowing.
(a) Deposits are beneficial to the depositors as mentioned below: (i) Bank accept the deposit and pay as interest rate on the deposits. (ii) Money is safe with the bank. (iii) People (depositor) may withdraw the money as and when they require. (iv) Depositors may make payments through cheques insteaRead more
(a) Deposits are beneficial to the depositors as mentioned below:
(i) Bank accept the deposit and pay as interest rate on the deposits.
(ii) Money is safe with the bank.
(iii) People (depositor) may withdraw the money as and when they require.
(iv) Depositors may make payments through cheques instead of cash.
(b) Deposits are beneficial for the banks too as mentioned below:
(i) Banks keep only a small proportion of deposits. Now a days, banks keep you about 15 per cent as cash in order to pay the depositors who might come to withdraw money from the bank on any give day.
(ii) Bank use the major portion of the deposits to extend loans. There is huge demand for loans for various economic activities. Banks make use of the deposits to meet the loan requirements of the people. Businessmen and other entrepreneurs take loan s from the bank and open the factories. They help in the advancement of the economy. Thus the deposits are beneficial to the nation.
Modern currency accepted as the medium of exchange without any use of its own due to reason as mentioned below: (i) In India, the Reserve Bank of India issues currency notes on behalf of the central government. (ii) As per Indian law, no other individual or organisation is allowed to issue currency.Read more
Modern currency accepted as the medium of exchange without any use of its own due to reason as mentioned below:
(i) In India, the Reserve Bank of India issues currency notes on behalf of the central government.
(ii) As per Indian law, no other individual or organisation is allowed to issue currency.
(iii) The law legalises the use of rupee as a medium of payment that cannot be refused in settling transaction in India.
(iv) No individual in India can legally refuse a payment made in rupee. Hence the rupee is widely accepted as the medium of exchange.
(a) A system in which goods are directly exchanged without the use of money is called barter system. (b) Double coincidence of wants means when both the parties - seller and purchaser - ae agree to sell and buy each other's commodities. It implies that what a person desires to sell is exactly what tRead more
(a) A system in which goods are directly exchanged without the use of money is called barter system.
(b) Double coincidence of wants means when both the parties – seller and purchaser – ae agree to sell and buy each other’s commodities. It implies that what a person desires to sell is exactly what the other wishes to buy. No money is used in such an arrangement. Therefore it is an essential feature of barter system.
Describe how cheque payments are made and realised.
If a person has to make a payment he issue a cheque for a specific amount in his name such a TPDDL. The TPDDL will deposit the cheque in their own account in the banks Thereafter, the money is transferred from one bank to another bank account in a couple of days. Thus, transaction takes place withoRead more
If a person has to make a payment he issue a cheque for a specific amount in his name such a TPDDL. The TPDDL will deposit the cheque in their own account in the banks Thereafter, the money is transferred from one bank to another bank account in a couple of days. Thus, transaction takes place without any payments of cash from one bank account to another bank account.
See lessWhat is a collateral? What happens if a borrower fails to repay the loan? Give some examples of colllateral.
(a) Collateral is an asset that the borrow owns and uses this as a guarantee to a lenders until the loans is rapid. (b) If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment. (c) Property such as land titles, deposits with banks, livestocRead more
(a) Collateral is an asset that the borrow owns and uses this as a guarantee to a lenders until the loans is rapid.
(b) If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment.
(c) Property such as land titles, deposits with banks, livestock are some common examples of collateral used for borrowing.
See less“Deposits in the banks are beneficial to the depositors as well as to nation.” Examine the statement.
(a) Deposits are beneficial to the depositors as mentioned below: (i) Bank accept the deposit and pay as interest rate on the deposits. (ii) Money is safe with the bank. (iii) People (depositor) may withdraw the money as and when they require. (iv) Depositors may make payments through cheques insteaRead more
(a) Deposits are beneficial to the depositors as mentioned below:
(i) Bank accept the deposit and pay as interest rate on the deposits.
(ii) Money is safe with the bank.
(iii) People (depositor) may withdraw the money as and when they require.
(iv) Depositors may make payments through cheques instead of cash.
(b) Deposits are beneficial for the banks too as mentioned below:
(i) Banks keep only a small proportion of deposits. Now a days, banks keep you about 15 per cent as cash in order to pay the depositors who might come to withdraw money from the bank on any give day.
(ii) Bank use the major portion of the deposits to extend loans. There is huge demand for loans for various economic activities. Banks make use of the deposits to meet the loan requirements of the people. Businessmen and other entrepreneurs take loan s from the bank and open the factories. They help in the advancement of the economy. Thus the deposits are beneficial to the nation.
See lessWhy is modern currency accepted as a medium of exchanges without any use of its own? Find out the reason?
Modern currency accepted as the medium of exchange without any use of its own due to reason as mentioned below: (i) In India, the Reserve Bank of India issues currency notes on behalf of the central government. (ii) As per Indian law, no other individual or organisation is allowed to issue currency.Read more
Modern currency accepted as the medium of exchange without any use of its own due to reason as mentioned below:
(i) In India, the Reserve Bank of India issues currency notes on behalf of the central government.
(ii) As per Indian law, no other individual or organisation is allowed to issue currency.
(iii) The law legalises the use of rupee as a medium of payment that cannot be refused in settling transaction in India.
(iv) No individual in India can legally refuse a payment made in rupee. Hence the rupee is widely accepted as the medium of exchange.
See lessWhat is the meaning of Barter System? Why is double coincidence of wants is an essential feature of a Barter system?
(a) A system in which goods are directly exchanged without the use of money is called barter system. (b) Double coincidence of wants means when both the parties - seller and purchaser - ae agree to sell and buy each other's commodities. It implies that what a person desires to sell is exactly what tRead more
(a) A system in which goods are directly exchanged without the use of money is called barter system.
(b) Double coincidence of wants means when both the parties – seller and purchaser – ae agree to sell and buy each other’s commodities. It implies that what a person desires to sell is exactly what the other wishes to buy. No money is used in such an arrangement. Therefore it is an essential feature of barter system.
See less