Question

What are the loan activities of banks?(class 10 money and credit)​

Answer 1

The loan activity for loan in Bank

# there were fix rate of intrest

#there were proper paper of loan

#fix time for replacement of loan

#if any one take loan they have Show there any property paper

#if any one not able to replace loan than Bank give warning than take action

Answer 2

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The loan activities of banks are as follows:-

• The people who have extra money, they deposit the money in the bank.
• The bank offers them a percent of interest rate.
• Banks keep some amount of money for the people who would come to withdraw the money.
• The rest of the money is used for giving loans to the people who are in need of money.
• The banks charge higher interest on loans that they offer on deposits.
• The difference between what is charged from the borrowers and what is paid to the depositors is their main source of income.
• This is how banks mediate between those who have surplus money and those who are in need of the money.
• This is the loan activity of bank.

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Credit Situations:-

There are two credit situations or loan situations.

The first one is the positive role of a credit in one's life, that is it may help the person to grow in economy.

The second one one is the negative role of a credit in one's life, that is it may push the borrower into a situation from which recovery is very painful. It may result to a huge debt.

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