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The banks play a pivotal role in a country's economy. The economy of a country is bound to crumble down if the banks are closed indefinitely. The banks provide necessary impetus to growth by pumping finance to industrial sector,without which the production cannot accelerate which is vital for employment and overall growth of the economy. However, the responsibilities of private banks are limited and they are more inclined for augmenting their profit acceleration. Whereas the nationalized banks have their social responsibilities to lift the cottage and small industries sector by providing soft loans, without caring for their profit motivation.
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Explain the role of financial intermediaries in the flow funds through the three sector economy?
In a three-sector economy consisting of business, households, and government, financial intermediaries such as commercial banks, mutual saving banks, insurance companies, mutual funds, pension funds, and credit unions provide the mechanism for reallocating funds from one surplus sector to a deficit sector. These institutions indirectly invest excess funds in areas of the economy where funds are needed.
What is the role of operations research in banks?
"What is the role of operations research in banks?"
Infrastructural decay and national development role of banks?
what is infrastructural decay and national development -role of banks what is infrastructural decay and national development -role of banks what is infrastructural decay and national development -role of banks
What happens if banks reduce lending?
It hurts the economy and makes banks lend less which would hurt the economy even more and so on...
Why does government regulate banks?
Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.
The role of banks in the Nigerian's economy?
the role of commercial banking in the development of nigerian economy
Write an essay on Role of Banks in An Economy.?
essay the role of bank
What are the Role of commercial banks in economy development of Afghanistan?
what is banking role in afghanistan economic development
The role of banks in the Nigerian?
the role of commercial banking in the development of nigerian economy
How do banks function?
Banks play a vital role to keep the flow of money in the economy in a controlled manner following the guidelines of RBI.
Explain the role played by the export-import bank in international trade?
role played in international trade by the export-import banks
What is the role of high street banks within the UK economy?
to spend the peoples money and rip of Ashley
What are the Importants of banks in the economy?
the importants of banks is that if banks dont lend to business and other banks to whole economy starts collapse
Explain the role of financial intermediaries in the flow funds through the three sector economy?
In a three-sector economy consisting of business, households, and government, financial intermediaries such as commercial banks, mutual saving banks, insurance companies, mutual funds, pension funds, and credit unions provide the mechanism for reallocating funds from one surplus sector to a deficit sector. These institutions indirectly invest excess funds in areas of the economy where funds are needed.
Why do central banks play an important role in a global economy?
they control the foreign currency reserves that are used for international trade
How does the economy affect banks?
Commercial banks - NO. National banks - YES.
How can you define the role of banking companies in an economy?
Banks can be considered the back bone of any economy esp when it is growing. Banks make credit available for people and industries without which they cannot run or expand their business. The significance of the banking industry is very evident after the recent economic crisis where banks were unable to maintain the liquidity in the markets and as a result the economy got badly affected
