Describe the possible effects of suspension of banking activities
4 years ago
Banking
1. In the event of suspension of banking activities, the people would not be able to deposit their savings in banks, nor able to withdraw money from banks. Saving are then likely to decline with a corresponding increase in consumption expenditure.
2. Farmers and small business units will suffer badly if banking operations are suspended. They will be forced to go to money lenders to borrow money at high rates of interest when bank finance is not available.
3. Foreign trade will be badly affected in the absence of facilities regarding issue of letter of credit and foreign exchange transactions.
Susmita Sah
Jan 16, 2022