ECONOMICS
ECONOMIC INSTITUTIONS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bank borrow money from people. Bank do NOT pay them interest.
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Banks give money to people. People do NOT have to pay the money back.
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Bank lend money to people. People pay the money back with interest.
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Banks make money. Bank print their own bills and create their own money
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Detailed explanation-1: -The 4 different types of banks are Central Bank, Commercial Bank, Cooperative Banks, Regional Rural Banks.
Detailed explanation-2: -The 5 most important banking services are checking and savings accounts, loan and mortgage services, wealth management, providing Credit and Debit Cards, Overdraft services.
Detailed explanation-3: -A bank which is entrusted with the functions of guiding and regulating the banking system of a country is known as its Central bank. Such a bank does not deal with the general public. It acts essentially as Government’s banker, maintain deposit accounts of all other banks and advances money to other banks when needed.
Detailed explanation-4: -Based on the exchange of cash, there are three types of accounting transactions, namely cash transactions, non-cash transactions, and credit transactions.