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Money and Credit
Mention the chracteristics of cheque payments.
The chracteristics of cheque payments:
(i)For payment through cheque, the payer who has an account with the bank, makes out a cheque for a specific amount.
(ii)A cheque is a paper instructing the bank to pay a specific amount from the person’s account to the person in whose name the cheque has been issued.
(iii)Cheque payments share the essential features of money.
(iv)The facility of cheques against demand deposits makes it possible to directly settle payments without the use of cash.
(v)Since cheque payments are accepted widely as a means of payment, along with currency, they constitute money in the modern economy.
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_________ costs of borrowing increase the debt-burden.
_________ issues currency notes on behalf of the Central Government.
Banks charge a higher interest rate on loans than what they offer on ________.
_________ is an asset that the borrower owns and uses as a guarantee until the loan is repaid to the lender.
In a SHG most of the decisions regarding savings and loan activities are taken by:
Formal sources of credit does not include:
Why do we need to expand formal sources of credit in India?
Why is money accepted as a medium of exchange in India?
Answer the questions asked below:
(i)Why are transactions are made in money?
(ii)Why is money is called a medium of exchange?
(iii)What is the most significant feature of the barter system?
Explain the functions of money.
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