1) List out the charecteristics relating to bank transactions ? 2) What are the functions of a bank ? 3) What are the advantages of opening a bank account ? Write same points for this questions..
Answers
Explanation:
1) The list of the characteristics relating to bank transactions is as under:
- Dealing with money,
- Acceptance of deposits.
- Lending loans.
- Payment and withdrawal.
- Agency and Utility services,
- Profit and Service orientation.
- Connecting link.
2) Utility Functions of Bank
Issuing letters of credit, traveller's cheque, etc. Undertaking safe custody of valuables, important documents, and securities by providing safe deposit vaults or lockers. Standing guarantee on behalf of its customers, etc.
3) Benefits of a Bank Account
- Bank accounts offer convenience. For example, if you have a checking account, you can easily pay by check or through online bill pay. ...
- Bank accounts are safe. ...
- It's an easy way to save money. ...
- Bank accounts are cheaper. ...
- Bank accounts can help you access credit
Answer:
1st)
1) Dealing with money -- banks deal with money of the public.
2) Individual / Firm /Company -- bank may be person , firm or a company.
3) Acceptance of deposits -- banks accepts deposits from the public.
4) Leading loans -- Banks lead loans to to industrial sector , agriculture sector, education.
2nd )
Primary functions include accepting deposits, granting loans, advances, cash, credit, overdraft and discounting of bills. - Secondary functions include issuing letter of credit, undertaking safe custody of valuables, providing consumer finance, educational loans, etc.
3rd)
1. Bank account facilitates a safe custody of money
The bank is the custodian of cash. As and when the account holders needs the money can withdraw the same depending upon the type of account.
2. Bank account helps in making payments
The bank account holder can make payment to third parties through the savings and current account. The payment may be regarding electricity bills, insurance premium, etc. The bank also makes direct payment on the standing instructions of the customer.
3. Bank account helps in collection of money
The bank can directly collect money of the customer in respect of dividend, salary pension or from debtors. The collected money is then deposited in customer's bank account.
4. Bank account holders get advances and loans
The current account holder can obtain an overdraft facility from his bank. The recurring and fixed deposit account holders can get a loan upto 75% of the amount to their credit. The savings account holders can also obtain loans to purchase computers and such other equipments.
5. Bank account helps in smooth transactions
The bank account make it possible for the businessmen to conduct their business operations smoothly not only in the domestic trade but also in the foreign markets.
6. Bank account holders get a safe deposit locker
The bank provides safe deposit locker facility to its account holders to keep their valuables like gold jewellery, share certificates, property documents, etc.