Banking

What is Accounting Profit? Accounting is the recording and reporting of financial transactions for a business, organization, or individual. It is used to analyze and report financial information and to make informed financial decisions. Any successful firm needs accounting to function. Accounting involves recording financial transactions, such as an individual or organization’s purchases, sales, receipts, …

Accounting vs Economic vs Normal Profit – Difference and Comparison Read More »

What is Checking Account? A checking account is a type of bank account that allows you to deposit and withdraw money and make payments and transfers. Checking accounts are used for bill payments, money transfers, and purchase transactions. Additionally, they are the most typical kind of bank account. Checking accounts offer a range of features, …

Checking vs Savings Account – Difference and Comparison Read More »

What is a Mortgage? A mortgage, also known as a mortgage loan or hypothec loan, is a type of loan that real estate purchasers generally use to raise funds to purchase real estate or used by the property owners to get a loan and raise funds for some purpose by putting a type of security …

Mortgage vs Charge – Difference and Comparison Read More »

What are Scheduled Banks? People are confused about the operations of scheduled banks in India. Scheduled banks in India refer to banks that are regulated by the Second Schedule of the RBI Act of 1934. This means that a scheduled bank’s distinctiveness is determined by how it is regulated. Scheduled banks are required by the …

Scheduled Banks vs Non-Scheduled Banks – Difference and Comparison Read More »

What is Public Sector Bank? Public sector banks are the banks run by the government of India. They are the largest category of banks in India.  There are various acts passed by the Parliament of India, like the State Bank of India (Subsidiary Banks) Act, 1959 & Bank nationalization Act (1970, 1980). These acts run …

Public Sector Bank vs Private Sector Bank – Difference and Comparison Read More »

What is Simple Interest? Simple interest is calculated based on a loan’s principal or the initial deposit into a savings account. Simple interest doesn’t compound, therefore a creditor will only charge interest on the original amount, and a borrower will never be required to pay further interest on the interest that has already accrued. It …

Simple vs Compound Interest – Difference and Comparison Read More »

What is Cash? Money other than checks or cash equivalents, such securities, commercial paper, government bonds, etc. A physical form of currency approved by the government for use in the exchange of goods or services, such as coins cash bills. In business, it is known as the most liquid asset because it can quickly pay off all expenses using cash. Cash is the most important record of a company. Cash is …

Cash vs Fund – Difference and Comparison Read More »

What is Accounting Profit? Accounting profit is defined as the total earnings of a business after deductions of explicit costs. Explicit costs are expenses that directly affect the profitability of a business. In other words, accounting profit is the profit left over after deducting expenses from revenues, following the Generally Accepted Accounting Principles (GAAP). The …

Accounting Profit vs Taxable Profit – Difference and Comparison Read More »

What is a Merchant Bank? A merchant bank is a financial institution that offers banking services and consultancy for corporations and high-value clients. Merchant banks offer loan services, financial advice, underwriting, and fundraising for their clients. Unlike commercial or retail banks, merchant banks do not offer their services to the general public. The main target …

Merchant Bank vs Investment Bank – Difference and Comparison Read More »

What is a Charge Card? Charge cards are a common payment option that is devoid of any interest. It is used by cardholders to pay for their purchases in a cashless way. Charge cards come with no fixed limit and offer a number of promotional rewards to cardholders. If you have a charge card, you …

Charge Card vs Credit Card – Difference and Comparison Read More »

What is Credit Card? A credit card is a type of financial product that allows consumers to borrow money in order to make purchases. Credit cards are issued by financial institutions, and they come with a credit limit, which is the maximum amount of money that the cardholder can borrow. Credit cards also come with …

Credit Card vs Debit Card – Difference and Comparison Read More »

What is Letter of Credit? A finance agreement is a document given by a bank or financial institution. This payment is to a vendor for goods or services that a client has agreed to acquire. The letter of credit assures the seller that they will be paid even if the buyer does not. If the …

Letter of Credit vs Bank Guarantee – Difference and Comparison Read More »

What is a commercial bank? A commercial bank is a sort of financial institution that receives deposits, provides checking account services, makes loans, and offers basic monetary products such as certificates of deposit and savings accounts. They may receive special treatment from funding banks and insurance companies, although the lines among those types of economic …

Commercial Bank vs Merchant Bank – Difference and Comparison Read More »

What is Bank Rate? A bank is a financial institution that accepts deposits and channels those deposits into lending activities. Banks connect customers that have capital deficits to customers with capital surpluses. When a bank lends money to a customer, the bank charges the customer an interest rate, which is a percentage of the total …

Bank Rate vs MSF Rate – Difference and Comparison Read More »

What is Unit Banking? A unit bank is a banking enterprise that is relatively smaller in size and functions. It is primarily meant to meet the banking needs of the local population of an area. It is not only smaller in size but also in its functions since a unit bank neither has an enormous …

Unit Banking vs Branch Banking – Difference and Comparison Read More »