Explanation
Money serves four basic functions:
1. It is a unit of account,
2. It is a store of value,
3. It is a medium of exchange and
4. It is a standard of deferred payment.
Micro-finance is a type of banking service that is provided to unemployed or low-income individuals, or groups who otherwise have no other access to financial services.
Self Help Group is an important instrument in the delivery of micro finance to the poor women for establishing micro enterprise.
Current account convertibility implies that the Indian rupee can be converted to any foreign currency at existing market rates for trade purposes for any amount.
It allows easy financial transactions for the export and import of goods and services.
Microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983.
Muhammad Yunus is a Bangladeshi social entrepreneur, banker, economist, and civil society leader who was awarded the Nobel Peace Prize for founding the Grameen Bank and pioneering the concepts of microcredit and microfinance.
Currency” includes all currency notes, postal notes, postal orders, money orders, cheques, drafts, traveler's cheques, letters of credit, bills of exchange and promissory notes, credit cards or such other similar instruments, as may be notified by the Reserve Bank.
Currency notes” means and includes cash in the form of coins and banknotes.
A term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between one and ten years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid.
For term loans payable in installments, the limitation period is 3 years for each installments, starting on the due date of each such installments.
CRISIL (formerly Credit Rating Information Services of India Limited) is an Indian analytical company providing ratings, research, and risk and policy advisory services and is a subsidiary of American company S&P Global.
A Letter of Credit (LC) is a document that guarantees the buyer’s payment to the sellers. It is issued by a bank and ensures timely and full payment to the seller. If the buyer is unable to make such a payment, the bank covers the full or the remaining amount on behalf of the buyer. A letter of credit is issued against a pledge of securities or cash. Banks typically collect a fee, i.e., a percentage of the size/amount of the letter of credit. Hence, correct answer is option C.
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