Question

Who said the following words : "A bank is an institution whose debts are widely accepted in the settlement of other people's debts to each other."

• A. Macleod
• B. Prof. R S Sayer
• C. Sir John Paget
• D. Horace white

Answer 1

Answer:

B. Prof. R S Sayer

• According to Sir John Paget says (in his book 'Law of banking'): "No person or body corporate or otherwise can be banker, who does not take deposit accounts, takes current accounts, issue and pay cheques and collect cheques crossed and uncrossed for his customers".
• According to Prof. R S Sayer defines "A bank is an institution whose debts are widely accepted in the settlement of other people's debts to each other."
• According to Sayer : "Banks are not mealy purveyors of money but also in an important sense manufactures of money."
• According to Geoffrey Crowther : A banker is a 'dealer in debt, his own and other peoples'.
• According to Dr. Herbert. L Hart, one who in the ordinary course of his business honours cheque drawn upon him by person from and for whom he receives money or current accounts.“
• According to Macleod: The essential business of a banker is to buy money and debts by creating other debts. A banker is essentially a dealer in debts or credit.
• According to Horace white: "A bank is a manufacturer of credit and a machine for facilitating exchange".