plz answer these questions
Answers
Answer:
bank earn money by getting interest on loans which are taken by the people
Answer:
1. 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 coincidence of wants is an economic phenomenon where two parties each hold an item the other wants, so they exchange these items directly without any monetary medium. This type of exchange is the foundation of a bartering economy.
3.Money as a Medium of Exchange. ... Money is a medium exchange because buyers and sellers agree to its common value. Money can lose its value during periods of hyperinflation, when too much money is dumped into an economy.
4.Money gives you freedom. When you have enough money, you can live where you want, take care of your needs, and indulge in your hobbies. ...
Money gives you the power to pursue your dreams. ...
Money gives you security.
5.Lack of double coincidence of wants.
Lack of a common measure of value.
Indivisibility of certain goods.
Difficulty in making deferred payments.
Difficulty in storing value.
6.a deposit of money that can be withdrawn without prior notice, e.g. in a current account.
7.an order to a bank to pay a stated sum from the drawer's account, written on a specially printed form.
2. 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.
Explanation:
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