ECONOMICS (CBSE/UGC NET)

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ECONOMICS

ECONOMIC INSTITUTIONS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
____ provide services similar to a bank; the main difference is that a ____ only provides these services to its members. Members own and control the institutions. ____ often offer higher interest rates on deposits and lower interest rates on loans than banks.A) Commercial Banks B) Credit UnionsC) Title Pawn LenderD) Payday Lender
A
A
B
B
C
C
D
D
Explanation: 

Detailed explanation-1: -Banks emphasize business and consumer accounts, and many provide trust services. Credit unions emphasize consumer deposit and loan services. Savings institutions emphasize real estate financing.

Detailed explanation-2: -A commercial bank is where most people do their banking. Commercial banks make money by providing and earning interest from loans such as mortgages, auto loans, business loans, and personal loans. Customer deposits provide banks with the capital to make these loans.

Detailed explanation-3: -Banks are financial institutions that are licensed to provide loan products and receive deposits; non-banking institutions cannot do this. Financial services include insurance, the facilitation of payments, wealth management, and retirement planning.

Detailed explanation-4: -Advancements of loans. Cheque payments. Discounting on bills of exchange. Collecting and paying the credit instruments. Guarantee by banks. Consultancy. Credit cards. Funds remittance. More items

There is 1 question to complete.
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