Question:
The difference between a bank and a nonbanking financial institution (NBFI) is that
The difference between a bank and a nonbanking financial institution (NBFI) is that
Updated On: Oct 9, 2024
- A bank interacts directly with the customers while an NBFI interacts with banks and governments.
- A bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies.
- A bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is mainly concerned with the term loan needs of large enterprises.
- A bank's main interest is to help in business transactions and savings/investment activities while an NBFI's main interest is in the stabilisation of the currency.
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The Correct Option is C
Solution and Explanation
The correct option is (C) : A bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is mainly concerned with the term loan needs of large enterprises.
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