Fractional reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Fractional reserve banking is a banking system in which only a fraction of bank deposits are backed by actual cash on hand and are available for withdrawal. This is done to expand the economy by freeing up capital that can be loaned out to other parties.
A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements.
CD's are generally issued by commercial banks
Reconciling the bank statement monthly is an example of independent internal verification
Tally is one of the best business accounting software for accounting, inventory, payroll. It is economical and one of the most popular ERP software solutions available in the industry.
Tally, an accounting software was developed by the multinational company TCS - Tata Consultancy Services.
Different types of risk exist in ivesting schemes depending on what you've invested in.
Savings accounts are generally regarded as the least risky investments as in this we just save our wealth for future expenses.
Bank credit balance meant that the banker is laible to paid us.
And if we have a credit balance accouding to bank statement is mean we have " cash at bank" and in our book we show in the assets side but bank show laiblities side.
Hence, The credit balance in the bank account is the amiunt we have in our account and we are eligible to withdraw that.
Most financial investments are examples of Human risk type of risks. Since, we humans invest in any kind of financial investments on our own risk expecting profits.
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