Banking

Bank is a financial institution that deals with monetary business by accepting deposits, granting loan, transferring money, for the economic development of a nation. This note has information about banking.

Summary

Bank is a financial institution that deals with monetary business by accepting deposits, granting loan, transferring money, for the economic development of a nation. This note has information about banking.

Things to Remember

  • Bank is a financial institution that deals with monetary business by accepting deposits, granting loan, transferring money, for the economic development of a nation.
  • Bank encourages the public for saving for the economic development.
  • In Nepalese context, banks are classified into three types: central bank, commercial bank and development bank.

MCQs

No MCQs found.

Subjective Questions

Q1:

Divide Rs 240 between  Rita and  Renu in the ratio of 3 : 5


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Since 3 : 5 = 8</p> <p>Rita's share = \(\frac{3}{8}\) \(\times\)Rs 240 = Rs 90</p> <p>Renu"s share = \(\frac{5}{8}\)\(\times\) Rs 240 = Rs 150</p>

Q2:

What is the ratio of 75 paisa to Rs 3.


Type: Short Difficulty: Easy

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Answer: <p>Solution:</p> <p>Here, Rs 3 = 300 paisa</p> <p>Ratio of 75 paisa to Rs 3 = \(\frac{75}{300}\) = \(\frac{1}{4}\) = 1 : 4</p>

Q3:

 Divide Rs.315 among Sushma, Renu and Anisha in the ratio of 2: 3: 4


Type: Long Difficulty: Easy

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Answer: <p>Solution:</p> <p>Since, 2 + 3 + 4 = 9</p> <p>Sushma's share = \(\frac{2}{9}\)\(\times\) Rs 315 = Rs 70</p> <p>Renu's share = \(\frac{3}{9}\)\(\times\) Rs 315 = Rs 105</p> <p>Anisha's share = \(\frac{4}{9}\)\(\times\) Rs 315 = Rs 140</p> <p>Hence, the required shares are Rs 70, Rs 105 and Rs 140</p>

Q4:

 Two numbers are in the ratio 2 : 3, if 3 is added to both, the ratio will be 5 : 7. Find the numbers.


Type: Long Difficulty: Easy

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Answer: <p>Solution:</p> <p>Let the numbers be 2x and 3x.</p> <p>According to the question,</p> <p>\(\frac{2x + 3}{3x + 3}\) = \(\frac{5}{7}\)</p> <p>or, 15x + 15 = 14x + 21</p> <p>or, 15x - 14x = 21 - 15</p> <p>or, x = 6</p> <p>Now,</p> <p>2x = 2\(\times\)6 = 12 and</p> <p>3x =3\(\times\) 6 = 18</p> <p>Hence, the required numbers are 12 and 18.</p>

Q5:

 Two numbers are in the ratio 4 : 5, if 5 is subtracted from both, the ratio will be 3 : 4. Find the numbers.


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Let the numbers be 4x and 5x.</p> <p>By question,</p> <p>\(\frac{4x - 5}{5x - 5}\) = \(\frac{3}{4}\)</p> <p>or, 16x - 20 = 15x -15</p> <p>or, 16x - 15x = -15 + 20</p> <p>or, x = 5</p> <p>Now,</p> <p>4x = 4\(\times\)5 = 20 and</p> <p>5x = 5\(\times\)5 = 25</p> <p>Hence, the required numbers are 20 and 25.</p>

Q6:

 Find the ratio of  5 hrs and 10 hrs.


Type: Short Difficulty: Easy

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Answer: <p>Solution:</p> <p>Given information,</p> <p>5 hrs and 10 hrs.</p> <p>First quantity = 5 hrs</p> <p>Second quantity = 10 hrs</p> <p>Ratio = \(\frac{5hrs}{10hrs}\)</p> <p>= \(\frac{ 1}{2}\)</p> <p>= 1 : 2</p>

Q7:

 Find the ratio of  20 cm and 25 cm.


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Given information:</p> <p>20 cm and 25 cm.</p> <p>First quantity = 20 cm</p> <p>Second quantity = 25 cm</p> <p>Two quantities are of same units.</p> <p>Ratio = \(\frac{20cm}{25cm}\)</p> <p>= \(\frac{4}{5}\)</p> <p>= 4 : 5</p>

Q8:

 Find the ratio of Rs 75 and  750 paisa.


Type: Short Difficulty: Easy

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Answer: <p>Solution:</p> <p>Given information:</p> <p>Rs 75 and 750 paisa.</p> <p>First quantity = Rs 75</p> <p>Second quantity = 750 paisa</p> <p>Since two quantities are not of same unit. So, convert Rs 75 into paisa. = Rs 75\(\times\)100</p> <p>= 7500 paisa</p> <p>Now, both quantities are of same units.</p> <p>Ratio = \(\frac{7500 paisa}{750 paisa}\)</p> <p>= \(\frac{10}{1}\)</p> <p>= 10 : 1</p>

Q9:

 Find the ratio of  750 grams and 1.5 kilograms.


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>First quantity = 750 grams</p> <p>Second quantity = 1.5 kg</p> <p>Sine both quantities are not of same units. So, 1.5 kg = 1.5\(\times\) 1000 = 1500 grams</p> <p>Now,</p> <p>Ratio = \(\frac{750 grams}{1500 grams}\)</p> <p>= \(\frac{1}{2}\)</p> <p>= 1 : 2</p>

Q10:

Find the ratio of 3ft and 9ft.


Type: Short Difficulty: Easy

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Answer: <p>Solution:</p> <p>Given information:</p> <p>3 ft and 9 ft.</p> <p>First quantity = 3 ft</p> <p>Second quantity = 9 ft</p> <p>Since, both quantities are of same units.</p> <p>Ratio = \(\frac{3 ft}{9ft}\)</p> <p>= \(\frac{1}{3}\)</p> <p>= 1 : 3</p>

Q11:

 Divide Rs 500 between Saroj and Renu in the ratio of 3 : 5


Type: Short Difficulty: Easy

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Answer: <p>Solution:</p> <p>Since, 5 + 3 = 8</p> <p>Saroj's share = \(\frac{3}{8}\)\(\times\) Rs 500 = Rs 187.5</p> <p>Renu's share = \(\frac{5}{8}\)\(\times\)Rs 500 = Rs 312.5</p>

Q12:

 Divide  Rs 296 between two persons in the ratio of 3 : 5


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Since, 3 + 5 = 8</p> <p>First's person = \(\frac{3}{8}\)\(\times\) Rs 296 = Rs 111</p> <p>Second's person = \(\frac{5}{8}\)\(\times\) Rs 296 = Rs 185</p>

Q13:

 What is the ratio of 90 paisa to Rs 9.


Type: Short Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Here, Rs 9 = 900 paisa</p> <p>Ratio of 90 paisa to Rs 9</p> <p>Rs 9 = 9 \(\times\) 100 paisa = 900</p> <p>= \(\frac{90}{900}\)</p> <p>= \(\frac{1}{10}\) = 1 : 10</p>

Q14:

 The Ratio of the number of Secondary schools and the students are 1 : 32 . If  there are 25 schools then how many are students ?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>The Ratio of Secondary school and students = 1 : 32</p> <p>Number of schools = 25</p> <p>Number of Students = ?</p> <p>Now,</p> <p>Ratio = 1 : 32</p> <p>or, \(\frac{Teacher}{Student}\) = \(\frac{1}{32}\)</p> <p>or, \(\frac{25}{Student}\) = \(\frac{1}{32}\)</p> <p>or, Student = 25\(\times\) 32</p> <p>\(\therefore\) Student = 800</p> <p></p>

Q15:

The Ratio of the Food and Education of a family is 4 : 5. If they spend Rs 6, 750 in Education, find the amount in Food?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>The Ratio of Food and Education of a family = 4 : 5</p> <p>Monthly expenditure in Education = Rd 6750</p> <p>Expenditure in Food = ?</p> <p>Here, \(\frac{expenditure in food}{expenditure in education}\) = \(\frac{4}{5}\)</p> <p>or, \(\frac{expenditure in food}{6750}\) = \(\frac{4}{5}\)</p> <p>or, expenditure in food = \(\frac{4}{5}\) x 6750</p> <p>\(\therefore\) expenditure in food = Rs 5400</p> <p></p>

Q16:

The Ratio of the number of boys and the number of girls in a school of 450 students is 4 : 5. When some new boys and girls are admitted, the number of boys increase by 25 and the ratio of boys to girls changes to 9 : 13. Calculate, how many new girls are admitted?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Since, 4 + 5 = 9,</p> <p>Number of boys in the School = \(\frac{4}{9}\) x 450 = 200</p> <p>Number of girl in the School = \(\frac{5}{9}\) x 450 = 250</p> <p>Since the num,ber of boys increases by 25, the new number of boys = 200 + 25 = 225.</p> <p>Let the number of new girls admitted be x.</p> <p>Then, new number of girls = 250 + x.</p> <p>By question,</p> <p>\(\frac{225}{250 + x }\) = \(\frac{9}{13}\)</p> <p>or, 2250 + 9x = 2925</p> <p>or, 9x = 2925 - 2250</p> <p>or, x = \(\frac{675}{9}\)</p> <p>\(\therefore\) x = 75</p>

Q17:

 Two numbers are in the Ratio  5 : 7. If 3 is added to both of them, the ratio will be 4 : 5. What are the numbers?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Let the numbers be 5x and 7x.</p> <p>According to the question, \(\frac{ 5x + 3}{7x + 3}\) = \(\frac{4}{5}\)</p> <p>or, 28x + 12 = 25x + 15</p> <p>or, 28x - 25x = 15 - 12</p> <p>or, 3x = 3</p> <p>or, x =\(\frac{3}{3}\)</p> <p>\(\therefore\) x = 1</p> <p>Now,</p> <p>5x = 5X 1 = 5 and</p> <p>7x = 7X1 =7</p> <p>Since the required numbers are 5 and 7.</p>

Q18:

 The Ratio of a height of Sony and Jenny is 4 : 5. If the height  of Sony is 40 inches, find the height of Jenny?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>The Ratio of height of Sony and Jenny = 4 : 5</p> <p>or, \(\frac{height of Sony}{height of Jenny}\) = \(\frac{4}{5}\)</p> <p>or, \(\frac{40 inches}{Jenny's height}\) = \(\frac{4}{5}\)</p> <p>or, Jenny's height = \(\frac{40 \times 5}{4}\)</p> <p>\(\therefore\) Jenny's height = 50 inches</p>

Q19:

The Ratio of the Investment between  Sunil and Saroj is 10 : 13. If Sunil has invested Rs 5000, How much did Saroj invest?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>The Ratio of the investment of Saroj and Sunil = 10 : 13</p> <p>Sunil's investment = Rs 5000</p> <p>Saroj's investment =?</p> <p>Here,</p> <p>\(\frac{Investment of Sunil}{Investment of Saroj}\) = \(\frac{10}{13}\)</p> <p>or, \(\frac{Rs 5000}{Investment of Saroj}\) = \(\frac{10}{13}\)</p> <p>or, Saroj's investment = \(\frac{ 13 X 5000}{10}\)</p> <p>or, Saroj's investment = Rs 6500</p> <p>Investment of Saroj is Rs 65,00</p>

Q20:

Salaka, Mausami and Smriti invested in the ratio of 3 : 4 : 5. If the total amount of their investment is Rs 36,000,000. Find how much did each invest?


Type: Long Difficulty: Easy

Show/Hide Answer
Answer: <p>Solution:</p> <p>Total amount = Rs 36,000,000</p> <p>Suppose x be the Ratio, So 3x, 4x and 5x.</p> <p>According to the question,</p> <p> 3x + 4x + 5x = Rs 36,000,000</p> <p>Or, 12x = 36,000,000</p> <p>Or, x = \(\frac{36,000,000}{12}\)</p> <p> = Rs 3,000,000</p> <p>Now,</p> <p>Investment of Salaka = 3x = 3X Rs 3,000,000 = Rs9,000,000</p> <p>Investment of Mausami = 4x = 4 X Rs 3,000,000 = Rs 12,000,000</p> <p>Investment of Smriti = 5x = 5 X Rs 3,000,000 = Rs 15,000,000</p>

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Banking

Banking

b

The word bank is derived from the Italian word Banco which means a place for keeping, lending and exchanging money. Bank can be regarded as the wheel of the business. It is the manufacturer as well as a trader of money. It collects spare money. Providers’ security invests into productive sectors and forms additional capital. It promotes industrial, agricultural as well as commercial sectors of the economy. It is the signal of economic prosperity and civilized society. it plays the role of agent, which performs all monetary transactions on behalf of its clients. It is the connecting link between business houses, which helps in settling accounts. It is a means for promoting foreign trade.

The bank is a financial institution, which deals with money. It accepts deposits from individuals and organizations and grants loans to them. It allows interest on the deposits made and charges interest on the loans granted. Since, it accepts deposits and grants loans, it is regarded as the trader of money. Further, it creates credit and supports for the formation of capital and hence it is regarded as the manufacturer.

Importance of Bank

The bank is said to be the financial wheel of an economic system. It plays an important role in the economic development of the country by performing various functions. Perhaps, nobody can imagine the present day life without performing banking activities. The main importance of the bank can be highlighted as follows: -

  1. Capital formation: - The bank accepts deposits of spare money from its customers. The deposits are utilized for formation of capital in the productive sectors like industry, trade and service areas of the country.
  2. Granting loan: - The bank grants loan to individual as well as an organization against the security placed. It grants loan in productive sectors like industry, trade and service areas, which enhances the economic development of the country.
  3. Encouraging saving: - The bank provides full security for the money deposited and allows interest on such deposits. It thus, encourages people to save as much as possible which supports capital formation.
  4. Issuing notes: - The bank issues coins and paper notes which help for exchanging goods and services. Such coins and notes make easier for measuring the value of goods and services.
  5. Exchanging foreign currencies: - The bank exchanges foreign currency as per the direction of the central bank. It fulfills the requirement of foreign currencies, which promotes foreign trade.
  6. Promoting trade and industry: - The bank provides different types of financial as well as technical services to the trader and manufacturer, which encourage and improve the quality of industry and trade. It supports the development and expansion of industrial and trading activities.
  7. Assisting the government: - The bank provides necessary financial data and information to the government, which facilitate for preparing monetary, tax and fiscal policies of the country.

In Nepalese context, banks are classified into three types. They are as follows: -

  1. Central Bank: Central bank is a supreme banking institution which involves in controlling, supervising and regulating the activities of the commercial bank and other financial institutions.
  2. Commercial Bank:Commercial bank refers to the bank which accepts deposits of the public and organization and grants loan to them against securities and provide financial services such as agency service, transfer of money, exchanging foreign currency, issuing capital, etc.
  3. Development Bank: The bank which facilitates the economic sectors such as industrial, agricultural, rural, etc. by providing capital and technical assistance for their development is known as a development bank.

Lesson

Our Economic Activities

Subject

Social Studies and Population Education

Grade

Grade 8

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