Difference between fund based and non fund based financial services
Answers
A number of financial services are offered by banks and other monetary institutions like leasing, factoring, credit card services, portfolio management, underwriting, rediscounting of bills, financial consultancy services, depository services, hire purchases and mutual fund management.
Some financial services are fund based and others are non fund based.
A fund based financial service involves credit offered by banks in the form of loans, overdrafts and other cash transactions.
In a non-fund based financial service the bank does not deal with funds or cash transactions. Some examples of this type of service are bonds, letters of guarantee and letters of credit.
Answer:
A fund based financial service invoves credit offered by the bank in the form of loans,overdraft and other cash transactions. In a non fund financial service does not deal with funds and cash transaction.