12 Questions
What is the primary purpose of a rural bank?
To help develop rural regions and finance agricultural projects
Which type of financial institution is dedicated to funding new and upcoming businesses?
Development bank
Which type of financial institution primarily accepts savings deposits and pays interest on them?
Savings bank
What is the main purpose of an investment bank?
To provide large amounts of long-term fixed capital to established firms
What is the main purpose of a credit union?
To lend savings of members to some of the members of the group
Which type of finance company focuses on consumer loans?
Installment sales finance company
What is the main purpose of credit terms?
To specify the conditions under which credit is granted
What is the key difference between an installment loan and a revolving credit?
Installment loans have a fixed number of payments, while revolving credit does not
What is the primary purpose of student loans?
To allow students to finance their education and defer payments until after graduation
How do debit cards differ from credit cards?
Debit cards can be used to withdraw money from a checking account, while credit cards cannot
What is the purpose of a credit limit?
To set a maximum amount that a customer can borrow or purchase on credit
What is the main difference between open account credit and other forms of credit?
Open account credit is extended to the customer in advance of any transactions, unlike other forms of credit
Learn about credit, its benefits, and the role of financial institutions such as banks. Explore how credit allows for receiving cash, goods, or services with the promise of paying in the future.
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