After reading this article you will learn about:- 1. Meaning of Banks 2. Functions of a Bank 3. Types. Meaning of Banks: A bank (German word) means a joint stock fund. A bank denotes a financial institution dealing in money. A bank is an institution that is prepared to accept deposits of money and repay the same on demand. The [...]
This article throws light upon the four main types of advances that can be availed from a bank. The types are: 1. Secured Loans 2. Cash Credit 3. Over Draft 4. Clean Advances. Type # 1. Secured Loans: These types of advances are granted against the collateral securities of different kinds, such as bullion, government securities of raw material or [...]
The common forms of credit instruments are: 1. Cheque 2. Bill of Exchange 3. Draft 4. Letter of Credit 5. Hundi 6. Promissory Note. Form # 1. Cheque: A cheque is written order addressed to a banker, signed by the person who has deposited money with the banker to pay an amount of money specified on the order to a [...]