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प्रश्न
State the advantage of a credit card over currency notes.
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उत्तर
- Credit cards minimize the need to carry significant amounts of cash and enable for convenient purchases anywhere, including online.
- Unlike currency notes, which can be permanently lost, credit cards provide protection against theft or loss and allow you to block the card.
- Credit cards provide you access to a line of credit, allowing you to make purchases even if you don't have enough money at the time.
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संबंधित प्रश्न
Explain the credit creation role of commercial banks with the help of a numerical example.
Answer the following question.
Explain, using a numerical example, how a reduction in reserve deposit ratio, affects the credit creation power of the banking system.
Credit creation by the commercial bank is determined by ______.
Access to adequate and timely credit at affordable rates is critical for the rural poor to alleviate high cost debt and invest in livelihood opportunities. Despite the Government of India's best efforts, financial inclusion of the rural poor has been beset with multiple challenges. Lack of adequate banking infrastructure and human resources in rural areas, unplanned expansion leading to unviable bank branches and low levels of financial literacy amongst the rural populace have been some of the key challenges.
The most vulnerable communities, who often had no formal credit history or ability to provide collateral, have often been the worst affected. Inability to access loans from banks meant that the poorest had to resort to moneylenders for loans at unreasonably high rates of interest that invariably led them into a toxic debt trap.
In this context, the SHG-Bank Linkage programme, formalised by the National Bank for Agriculture and Rural Development (NABARD) in 1995, synthesizes 'formal financial systems' (in terms of a formal institution providing credit) with the 'informal sector' (comprising of rural poor with no formal credit history), has emerged as a preferred vehicle for providing financial services to the hitherto unbanked poor.
Community Based Repayment Mechanisms (CBRMs) have been institutionalised at branches involved in financing SHGs to monitor and ensure timely repayment of loans by SHGs. The number of SHGs with outstanding bank loans stands at nearly 5 million today, implying that the program has brought formal banking services to over 50 million women.
Which of the following is likely to be the MAIN objective of this programme?
Identify which of the following Statement is true?
Deposits made by the people from their own resources are called ______.
Which of these banks formulates the credit control tools?
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
How money multiplier is related to Legal Reserve Ratio?
In the credit creation process, loans of one bank become ______.
