Suppose you need $50 on Wednesday but wont get paid by your job until Friday. To solve this temporary problem, a ..... will give small loans in return for a portion of the upcoming paycheck. This means the person will get $50 on Wednesday, but come Friday $55 of his or her paycheck will go to the ..... ..... companies generally charge much higher interest on loans than other institutions.A) Commercial BanksB) Credit UnionsC) Title Pawn LenderD) Payday Lender

ECONOMIC INSTITUTIONS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Suppose you need $50 on Wednesday but won’t get paid by your job until Friday. To solve this temporary problem, a ____ will give small loans in return for a portion of the upcoming paycheck. This means the person will get $50 on Wednesday, but come Friday $55 of his or her paycheck will go to the ____ ____ companies generally charge much higher interest on loans than other institutions.A) Commercial BanksB) Credit UnionsC) Title Pawn LenderD) Payday Lender

A	Commercial Bank
B	Credit Union
C	Payday Lender
D	Title Pawn Lender

Explanation:

Detailed explanation-1: -Call money is any type of short-term, interest-earning financial loan that the borrower has to pay back immediately whenever the lender demands it. The call money is the most important segment of the Indian financial system. Call money allows banks to earn interest, known as the call loan rate, on their surplus funds.

Detailed explanation-2: -Banks, Primary Dealers (PDs), Development Finance Institutions, Insurance companies, and select Mutual Funds are currently participants in the call money market. PDs and banks can act as both borrowers and lenders in the market.

Detailed explanation-3: -Call money is minimum short-term finance repayable on demand, with a maturity period of one to fourteen days or overnight to a fortnight. It is used for inter-bank transactions. The money that is lent for one day in this market is known as “call money” and, if it exceeds one day, is referred to as “notice money."

Detailed explanation-4: -Understand Your Credit. Decide on a Bank Loan Amount. Determine the Loan You Need. Decide Where to Borrow Money. Understand the Loan. Apply for the Loan. Go Through Underwriting. Business Loans. More items •31-Oct-2021

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC INSTITUTIONS