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 typically come with a credit limit, which is the maximum amount of money that the cardholder can borrow. Credit cards also typically …
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 …
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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 …
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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 …
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 …
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