Case study to show the importamce of banks with respect to loans & low rate of interest

Dear Student,


Such questions are made for enhancing the self creative skills and should be tried
answering on your own. However, here are a few points that will help you in framing
your answer:

a. In your case study you may refer to banks as formal source of credit
b. Banks have an important to role to play in an economy in terms of accepting deposit and granting loans
c.  Then you may refer in detail about the functions of banks
d Banks refers to formal sources of credit which may grant loans to people , ‚Äčon a  reasonable rate of interests, seeks repayment within a stipulated time with a degree of flexibility
e. The money deposited in bank is generally safe as it is the responsibility of a bank to repay the money in case of any mishappening, to the depositor.
f. Banks also give good rate of interest on the deposit made by the public.
g. It is from these deposit the loan is extended to people in the form of cheap credit to fulfil their varied needs.
h.  Peoples' saving account is safe in banks, as generally banks guarantee 
Deposit insurance, to the depositor.
i. You may refer to types of deposits that can be made, that is current, fixed and savings
j. Then you may refer to types of loans being offered by banks like short terms loans, loans term loans, car loans, housing loans etc
k.  Then refer to role of banks in extending rural credit.


You may feel free to contact us if you face any issue or difficulty while composing your
answer. You can also send us your answers here for a feedback and required corrections,
if any.


Regards

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