Determining bank problem
Which of the given is a bank? a) Post office saving banks (b) LIC (c) UTI (d) IDBI.
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Post office saving banks is not bank in the logic that even though they accept deposits from public however do not advance loans to the others.
LIC, UTI and IDBI are also not banks in the logic that even though they do not accept chequeable deposits however advance loans to others.
Describe the following terms: (i) Business fixed investment (ii) Inventory Investment (iii) Residential construction Investment (iv) Public Investment.
Explain the main features of Harrod - Domar Growth model. How does the Harrod Domar model explain the occurrence of trade cycles?
Why the repayment of loan is a capital expenditure? Answer: Repayment of loan is taken as a capital expenditure since it diminishes the liabilities of Government.
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