Answer the following
1. Define barter system
2. What is the major source of income to the bank?
3. On which deposits a customer obtains highest interest rate?
4. Define cheque
5. What are SHG s?
Answers
Answer:
1.A barter system is an old method of exchange. The system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return. ... Bartering doesn't involve money which is one of the advantages
2.The main source of income for banks is the difference between interest rate charged from borrowers and what is paid to depositors. After keeping a portion of deposits as reserves banks lend to people who demand money as loan and bank charges interest from them.
3.Time deposits generally pay a slightly higher rate of interest than a regular savings account. The longer the time to maturity, the higher the interest payment will be. Another name for this type of investment is term deposit.
4.an order to a bank to pay a stated sum from the drawer's account, written on a specially printed form.
5.Self Help Groups (SHGs) are informal groups that consist of people who face similar problems. These people come together to form a group to overcome their common problems to improve their standard of living. ... This amount acts as the fund for the SHGs and is used to provide loans to its members.
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Answer:
1.A barter system is an old method of exchange. Th is system has been used for centuries and long before money was invented. People exchanged services and goods for other services and goods in return.
2.The main source of income for banks is the difference between interest rate charged from borrowers and what is paid to depositors. After keeping a portion of deposits as reserves banks lend to people who demand money as loan and bank charges interest from them.
3.The bank makes a profit by lending the funds held in time deposit accounts for a higher interest rate than the rate it pays on the time deposits. The bank may also invest the money from the time deposit in other securities that pay a higher return than it is paying the customer.
4.an order to a bank to pay a stated sum from the drawer's account, written on a specially printed form.
5.A SHG (self help group) is a community based group with 10-20 members. They are usually women from similar social and economic backgrounds, all voluntarily coming together to save small sums of money, on a regular basis.
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