ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They provide an incentive for people to save, because they offer a return.
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They provide businesses and farmers with credit to open, run and expand their businesses and farmers.
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They provide consumers with credit that can be used for investment in human capital.
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None of above
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Detailed explanation-1: -Credit creation-Apart from increasing the money in circulation, bank deposits also make their way to industries, to help them create productive assets. This credit has a multiplier effect on the economy.
Detailed explanation-2: -Depository institutions (aka banks), which includes commercial banks, savings and loans, and credit unions, receive money from depositors to lend out to borrowers.
Detailed explanation-3: -Commercial Banks. Commercial banks are generally stock corporations whose principal obligation is to make a profit for their shareholders. Savings and Loans/Savings Banks. Credit Unions.
Detailed explanation-4: -Industrial Finance Corporation of India (IFCI) State Finance Corporations (SFCs) Industrial Development Bank of India (IDBI) Industrial Credit and Investment Corporation of India (ICICI) Unit Trust of India (UTI) More items