FINANCIAL INTERMEDIARIES (NBFIS)

FINANCIAL INTERMEDIARIES (NBFIS) Wc have studied banks and their functioris. Besides the hanks there arc other financial institutions too which practically perform the same functions (e.g. deposit mobilisation and advancing loans as thc banks but in a different way....

Functions of the NBFfs

Functions of the NBFs The following are the main functions perforated  produce and provide near money and not money.Iii) Tile provide liquid assets  the community.  because their liabilities arc close substitutes for money,(iii) They pass on savings to ultimate...

Significance of Credit Creation

Significance of Credit Creation Credit creation vitally affects the level of economic activity (and hence national income, output and  employment) in the country. It is no wonder that the policy pursued by the monetary authority in the country is directed to the...

CREATION OF CREDIT

CREATION OF CREDIT Creation of credit is onc of the most important functions of a modern bank. A hank has sometimes  been called a factory for the manufacture ofcredit. Let us see what we mean by credit creation. how it is created by the banks and, finally, whether...

BANKING

BANKING A bank is an institution which deals in money. Broadly speaking, bank draw surplus money from the people who are not using it at the time, and lend to those who are in. a position to use it for productive purposes. Modern banks have developed from very small...