Explain the case study of terms of credit from money and credit
Answers
Explanation:
Money
Money is a means by which we can get something in exchange. Initially, coins came into use. The coins were initially made up of precious metals; like gold & silver. When the precious metals became too precious, ordinary metals were being used for making coins ; although Paper money and smaller dimenstions coins are still in use.
The currency notes and coins are issued by Government of an authorized body. In India RBI(Reverse Bank of India) issued currency notes.
Advantages of Money
- Removes the coincidence of wants.
- Takes less storage space and easir to carry.
Terms of Credit
People often need to borrow money for various purposes. Many businessmen need to borrow to buy raw materials and machinearies. Many farmers need ti borrow to buy seeds, fertilizers, farm equipments, etc. People usually buy vehicles and houses by borrowing loan from banks. Thus, credit plays an important role in the economy.
Every loan agreement specifies terms and conditions; regarding the rate of interest and terms of payment. In most of the cases the banks fix an EMI( Equated Monthly Installment) for repayment of loan.
Answer:
Money.
Money is a means by which we can get something in exchange, initially, coins came into use. The coins were iniyially made up of precious metals; like - gold & silver. When the precious metals became too precious, ordinary metals were being used for making coins; although Paper maony and smaller dimensions coins are still in use.
The currency notes and coins are issued by Government of an authorized body. In India RBI( Reserve Bank of India) issued currency notes.
Advantages of Money.
- Removes the coincidence of wants.
- Takes less storage space and easier to carry.
Terms of Credit
People often need to borrow money for various purposes. Many businessmen need to borrow to buy raw materials and machinearies. Manh farmers need to borrow to buy seeds, fertilizers, farm equipments, etc. People usually buy vehicles and houses by borrowing loan from banks. Thus, credit plays an an important role in the economy.
Every loan agreement specified terms and conditikns ; regarding the rate if interest and terns of payement. In most if the cases the banks fix an EMI( Equated Monthly Installments) for repayment of the loans.