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How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?
- a)By encouraging barter trade over monetary transactions
- b)By regulating the prices of imported goods
- c)By providing additional capital funds for manufacturers and traders
- d)By imposing strict regulations on export activities
Correct answer is option 'C'. Can you explain this answer?
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How did the indigenous banking system in the Indian subcontinent suppo...
Indigenous Banking System in Ancient India
The indigenous banking system in the Indian subcontinent played a pivotal role in stimulating economic growth during ancient times.
Role of Indigenous Banks
- Indigenous banks, often referred to as "Shroffs" or "Mahajans," were local financial institutions that provided essential financial services.
Capital Provision
- These banks offered loans and credit facilities to manufacturers and traders, which enabled them to invest in their businesses.
- By providing additional capital, they empowered local artisans, merchants, and farmers to expand their operations, thus promoting productivity.
Facilitating Trade
- The availability of credit encouraged trade by allowing traders to purchase goods in bulk, manage stock, and fulfill orders promptly.
- This accessibility to funds helped in scaling up businesses and stimulating economic activities in various sectors.
Stability in Economic Activities
- The indigenous banking system contributed to economic stability by helping businesses manage cash flow and navigate financial uncertainties.
- By lending to multiple sectors, banks diversified their risk and supported a wide array of economic activities, from agriculture to textiles.
Conclusion
- Overall, the indigenous banking system was instrumental in providing the necessary financial backbone for the growth of commerce and industry in ancient India.
- By facilitating access to capital, it fostered an environment of entrepreneurship and economic development, laying the groundwork for future economic frameworks.
The indigenous banking system in the Indian subcontinent played a pivotal role in stimulating economic growth during ancient times.
Role of Indigenous Banks
- Indigenous banks, often referred to as "Shroffs" or "Mahajans," were local financial institutions that provided essential financial services.
Capital Provision
- These banks offered loans and credit facilities to manufacturers and traders, which enabled them to invest in their businesses.
- By providing additional capital, they empowered local artisans, merchants, and farmers to expand their operations, thus promoting productivity.
Facilitating Trade
- The availability of credit encouraged trade by allowing traders to purchase goods in bulk, manage stock, and fulfill orders promptly.
- This accessibility to funds helped in scaling up businesses and stimulating economic activities in various sectors.
Stability in Economic Activities
- The indigenous banking system contributed to economic stability by helping businesses manage cash flow and navigate financial uncertainties.
- By lending to multiple sectors, banks diversified their risk and supported a wide array of economic activities, from agriculture to textiles.
Conclusion
- Overall, the indigenous banking system was instrumental in providing the necessary financial backbone for the growth of commerce and industry in ancient India.
- By facilitating access to capital, it fostered an environment of entrepreneurship and economic development, laying the groundwork for future economic frameworks.
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How did the indigenous banking system in the Indian subcontinent suppo...
The indigenous banking system in the Indian subcontinent played a crucial role in fostering economic growth by offering additional capital funds to manufacturers, traders, and merchants for expansion and development. This support facilitated increased trade and commerce, fueling the prosperity of the region and contributing to the evolution of various financial institutions over time.
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How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?a)By encouraging barter trade over monetary transactionsb)By regulating the prices of imported goodsc)By providing additional capital funds for manufacturers and tradersd)By imposing strict regulations on export activitiesCorrect answer is option 'C'. Can you explain this answer?
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How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?a)By encouraging barter trade over monetary transactionsb)By regulating the prices of imported goodsc)By providing additional capital funds for manufacturers and tradersd)By imposing strict regulations on export activitiesCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?a)By encouraging barter trade over monetary transactionsb)By regulating the prices of imported goodsc)By providing additional capital funds for manufacturers and tradersd)By imposing strict regulations on export activitiesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?a)By encouraging barter trade over monetary transactionsb)By regulating the prices of imported goodsc)By providing additional capital funds for manufacturers and tradersd)By imposing strict regulations on export activitiesCorrect answer is option 'C'. Can you explain this answer?.
How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?a)By encouraging barter trade over monetary transactionsb)By regulating the prices of imported goodsc)By providing additional capital funds for manufacturers and tradersd)By imposing strict regulations on export activitiesCorrect answer is option 'C'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?a)By encouraging barter trade over monetary transactionsb)By regulating the prices of imported goodsc)By providing additional capital funds for manufacturers and tradersd)By imposing strict regulations on export activitiesCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How did the indigenous banking system in the Indian subcontinent support economic growth during ancient times?a)By encouraging barter trade over monetary transactionsb)By regulating the prices of imported goodsc)By providing additional capital funds for manufacturers and tradersd)By imposing strict regulations on export activitiesCorrect answer is option 'C'. Can you explain this answer?.
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