Banking and Credit — Flashcards

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A bank is an institution which accepts money from the public as deposits and gives loans to them. It accepts money safely, helps people withdraw it when needed, and also provides loans for spending or…

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Banking refers to accepting deposits of money from the public for lending or investment, payable on demand or otherwise and withdrawable by cheque, draft, order, or otherwise. It covers the basic work…

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The two primary functions of a bank are accepting deposits from the public and giving loans. These two functions are the main basis of banking activity.

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People deposit money in a bank for safety, easy withdrawal, payment through cheques, and sometimes interest on certain deposits. A bank also helps keep money ready for future use instead of keeping it…

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A cheque book is issued to depositors for withdrawing money from the bank and for making payments to others through the bank. It gives a safe and convenient way to use deposited money.

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Locker facility is a safe service provided by a bank for keeping valuables such as jewellery and property documents. It helps protect important items from loss or theft.

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Credit is the claim to receive payments. It is also a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at a later date. In banking, credit is cr…

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When a bank gives a loan, it becomes a lender and the borrower must repay it later. The bank can claim that money in the future, so the loan given today becomes a deposit-like claim for the bank. This…