Money and credit
7.What is banks income?How much money the bank should hold for its daily transactions?
8. Explain what is credit and debt trap?
Answers
Answer:
7)Banks provide various loans and advances to industries, corporates and individuals. The interest received on these loans is their main source of income. 2 Interest on investments: Banks invest in various government and rated securities, and earn interest and dividends from these investments.
8)credit:Credit is the ability to borrow money or access goods or services with the understanding that you'll pay later. ... To the extent that creditors consider you worthy of their trust, you are said to be creditworthy, or to have "good credit."
debt trap : A debt trap is a situation in which a borrower is led into a cycle of re-borrowing, or rolling over, their loan payments because they are unable to afford the scheduled payments on the principal of a loan. These traps are usually caused by high-interest rates and short terms.
Explanation:
sorry could not answer this question,How much money the bank should hold for its daily transactions?