Article on banking and finance

banking and finance is very important A bank is a financial institution that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet. Lending activities can be performed either directly or indirectly through capital markets.

"Finance is the management of money and other valuables, which can be easily converted into cash."

Furthermore, the one word which can easily replace finance is "EXCHANGE." Finance is nothing but an exchange of available resources. Finance is not restricted only to the exchange and/or management of money. A barter trading system is also a type of finance. Thus, we can say, Finance is an art of managing various available resources like money, assets, investments, securities, etc.

Hence, Finance has now become an organic function and inseparable part of our day-to-day lives. Today, it has become a word which we often encounter on our daily basis.

"Finance is a simple task of providing the necessary funds (money) required by the business of entities like companies, firms, individuals and others on the terms that are most favourable to achieve their economic objectives."

In Finance, Investment can be explained as a utilisation of money for profit or returns.

Advantages

• Credit Unions typically pay higher dividend rates on savings
• Credit Unions typically offer lower rates on loans
• Credit Unions typically provide better service; since they are owned and governed by their membership, they tend to prioritize the needs of their members above all else
• Credit Unions operate on a not-for-profit business model, so excess earnings are returned back to the membership in form of competitive rates and lower fees, and sometimes even special dividends
• Many Credit Unions offer the same products and services found at banks
• Credit Unions often have added-value benefits, such as free financial education, discounted theme park tickets, and special member rates for services such as home alarm systems...even discounts at online retailers like Barnes & Noble.
• Disadvantages
  • Credit Unions, and in particular smaller local credit unions, struggle to match the level of convenience (ATMs and branches) that many banks provide their customers, although many CUs are part of shared networks which enhance the breadth of delivery channels available to their members
  • Some Credit Unions are limited in their product offerings
  • One must qualify for membership
  • One must pay a membership fee to join

"Finance is the management of money and other valuables, which can be easily converted into cash."