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5. Banking

The chapter covers the fundamental aspects of banking, including the definition and types of banks, their functions, and their role in the economy. It explains the primary and secondary functions of commercial banks, outlines various banking terms, and introduces modern banking services. The chapter emphasizes the importance of banks in promoting savings, providing loans, and enabling secure transactions.

Sections

  • 5

    Banking

    Banking involves accepting deposits and providing loans, significantly contributing to a nation's economic development.

    Learning Practice

  • 5.1

    Introduction

    This section introduces banking as a process of accepting deposits and lending, highlighting its vital role in economic development.

    Learning Practice

  • 5.2

    Meaning And Definition Of A Bank

    A bank is a financial institution that accepts deposits and lends money for productive purposes.

    Learning Practice

  • 5.3

    Functions Of A Commercial Bank

    Commercial banks perform essential functions including accepting deposits and lending money, while also providing various financial services.

    Learning Practice

  • 5.3.A

    Primary Functions

    Commercial banks primarily accept deposits and lend money to facilitate economic activities.

    Learning Practice

  • 5.3.A.1

    Accepting Deposits

    This section discusses the vital function of banks in accepting deposits from the public, detailing various types of accounts available to customers.

    Learning Practice

  • 5.3.A.2

    Lending Money

    This section outlines the concept of lending money by banks, describing various loan types and functions associated.

    Learning Practice

  • 5.3.B

    Secondary Functions

    This section outlines the secondary functions of commercial banks, including agency functions and general utility functions.

    Learning Practice

  • 5.3.B.1

    Agency Functions

    This section discusses the agency functions of commercial banks, highlighting their role in managing financial transactions on behalf of customers.

    Learning Practice

  • 5.3.B.2

    General Utility Functions

    General Utility Functions of banks include services such as issuing drafts, providing ATM facilities, and foreign exchange services which facilitate various transactions for customers.

    Learning Practice

  • 5.4

    Types Of Banks

    This section outlines the various types of banks and their primary functions in the financial system.

    Learning Practice

  • 5.5

    Role Of Banks In Business And Economy

    Banks play a crucial role in driving economic growth by facilitating savings, providing loans, and promoting safe financial transactions.

    Learning Practice

  • 5.6

    Banking Terms You Should Know

    Learning

  • 5.7

    Modern Banking Services

    Modern banking services include digital and online methods that enhance convenience for customers, such as internet banking, mobile banking, and digital wallets.

    Learning Practice

References

ca9-5.pdf

Class Notes

Memorization

What we have learnt

  • Banking involves accepting ...
  • Commercial banks have prima...
  • Modern banking includes ser...

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