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Extending credit or creating credit refers to one of the important functions of commercial banks that help in increasing money supply. For instance, a bank lends ₹ 5 lakh to an individual and opens a demand deposit in the name of that individual. Bank makes a credit entry of ₹5 lakh in that account. This leads to creation of demand deposits in that account. The point to be noted here is that there is no payment in cash. Thus, without printing additional money, the supply of money is increased.
Mayank invested Rs. 100,000 in the garment business. After a few months, Shanu joined him with Rs. 60000. At the end of the year, the total profit was d...
A and B entered into a business investing their capital in the ratio of 22:21, respectively and the respective ratio of time for which they made their i...
‘A’, ‘B’ and ‘C’ entered into a partnership by making investments in the ratio 5:6:9, respectively. At end of the year, if the difference be...
A invested Rs X in a scheme. After 6 months, B joined with Rs 3000 more than that of A. After an year, ratio of profit of B to the total profit was 5: 9...
'A' and 'S' ventured into a business with initial investments of Rs. "w + 32" and Rs.'w', respectively. After 'x' months, 'V' joined them with an initia...
Three friends, Palak, Shinu, and Riya, joined forces to start a partnership business, contributing money in the ratio of 5:4:2, respectively, for a dura...
Raj invested Rs.32000 in a business. After 7 months, Rohan joins him with an investment of Rs.P. If at the end of the year the profit is Rs.55000 and pr...
A and B together start a business with investment of Rs. 2200 and Rs. (x + 500), respectively. If the profit earned after 5 years is Rs. 5000 and share ...
A starts business with Rs.9000 and after 8 months, B joins with A as his partner. After a year, the profit divided in the 4:5. What is B’s contributi...
'Akash', 'Bishnu', and 'Chintu' formed a partnership with investments of Rs. 4800, Rs. 3600, and Rs. 6400, respectively, for durations of 8 months, 1 ye...