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Money and Credit
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What are terms of credit?
Collateral, ROI, Documentation and mode of repayment
What is a collateral?
An asset that the borrower owns and uses as a guarantee to a lender until the loan is repaid
Modern forms of money
Paper notes, coins
Barter system means
Exchange of goods without the involvement of money
What is the earning of the Banks?
Difference between the interest charged and paid
What percentage of deposited money is kept by the banks?
15%
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