CnAPTER:3

MONEY AND CREDIT

Shot Answen Gcstiens

Ruess) What de tho bauks do otth the
which taey ceine ema ths depes.
Bomks acept qulolic
pubic?
pay am
wtrt the
depesits.
2

banks meneg
camet Cs ittrcsts.

lhcve frevisien
the

3ta)
Depesits madi eitaen by
cah
Quus ) Mautien
’, ighen cotthoree dis advomtoges egandy
fant the
hane Dess
berieing meanS
 hcetain cass the fugh atrtt
wterest ler
ate ler terestng CaM moan tha
the aumaml to be upaid quaten.
This ceuld lead to mouasing debt and
dept trap.
3ta)
etenpret by may net do So.

do neod expand the ermal

fiost th yermal sctor atll mects uly
abeut the total adit nercds e

Mest as em yemol endens cotu

vey tigh iutsst
borrow
2
tuat bonks amd
eeepcnachives wuase thei Ramding
pantiulaaly
heduces

3 oile termal Sccto

nad to erpomd, it s alo nocceSay
thot ecieves toe loaue
tues q) chat weys dots
e ludia 3uQovise the
boaks ?
The Reseves Bant
Junctiováng
funcieing e qenmal 3upevi
fernwsianc
bauks maintaintwe taaue Seon thai
balonc e ts
minimwm
depesits
2
The RB
meitoS te baulls
aautaiiMg cash balani. actus

lemus ne
iust to
businsAe aud tadsqsit- making
hoans lout
cultivaders. mall scale mdusties
a te smell
*
Pericai
wtomclentaly bauks
bouke howe
hawe to
to gumit
they
wtenis hate Sevnaivgto wshem
etc.

Conen
 lcent years , eple tnawe tied Gut
Sene wags
set the pooY. The idea to ergamise
ural Peth m particlan oemen to
Smali helh qoups and peel thon
Saning
A
tyfical SHa dhas I5- 20 membeLs
nighbenhod
a d Sae

2
Sawing qan memben vaues
es te 23 to
mare, dpendig
Mewbens
Small eans ment

qpuoup chages werts thse ba

but tis Jess than what t
Sendens chage
becoms eisiblo
bomk.

San etou ed ho awne

Ch ate Sel
empleym eppotities for te member
smal loas a poVId
membens merdaged land,.
 Setor
lewet 'wtene, enat
mose ditu
gecwuty
md
Ao
indpecple seuncoe ts
feeple
ein, qt teback.
inee em em back.
them then t
moOms
S\foxmal
ou
wtenest
En.ful they adSeud thoy ucthich iwaidenest
s a Th
et tetB)coepenotheg 3
t mone (amd bauks
ntormal crut Souncas foxmalMcude
S. 2
issties
jamctieytichcudt ian souIces fennmal
Supeises
the
Bauk lesewe he
INfORMAL CREDIT SOURCES
Of ORMAL
a d jemal Credit.Dsingush
ean betw Qas)
ath))
capitals marting ler