Distinguish between

1) Duty Paid Warehouse and Bonded Warehouse
Solution:

Duty paid Warehouses	Bonded Warehouses
Meaning
If an importer faces any problem in the transportation of goods, after making payment of duty, then goods can be stored at a duty-paid warehouse.	Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of customs duty.
Control
All duty paid warehouses are public warehouses that are available to all importers.	These warehouses work under the control of customs authorities.
Classification
Duty paid warehouses help the importer as proper care of goods is taken, processing of goods can be done like sorting, re-packing, etc.	The goods are held in bond and cannot be withdrawn without paying the customs duty.
Location
These are located near the port & dock area.	These are located near the dock area and if an importer is unable or unwilling to pay customs duty immediately then he can store the goods in a bonded warehouse.
Used
Such warehouses are more useful for the re-export of the goods.	The importer can withdraw the goods in instalments by paying the customs duty proportionately.

2) Central Bank and Commercial Bank
Solution:

Central Bank	Commercial Bank
Function
The main function is to accept deposits from the public for lending to industry and others	The main function of the central bank (RBI) is to regulate the money supply in the country.
Printing of Currency
The commercial banks cannot print currency	The central bank can print currency notes.
Acceptance of Deposits
The commercial bank accepts deposits from the public	The Central Bank does not accept deposits from the public.
Loans
Commercial banks provide loans to industry and commerce.	The Central bank provides loans to bankers and financial institutions
Ownership
It can be owned by private and/or by government agencies.	It is owned and controlled by the government of India
Number of Banks
There are many commercial banks in India.	There is only one Central Bank (RBI) in India.
Monetary policy
The commercial banks do not frame any monetary policy The commercial bank does not keep a check on the central bank	The Central Bank frames the monetary and credit policy.

3) Road Transport and Air Transport
Solution:

Road Transport	Air Transport
Speed
Road transport has limited speed due to bad road conditions, accidents, etc.	It is the fastest mode of transport.
Carrying capacity
It has limited carrying capacity	It has limited carrying capacity
Cost
It requires limited capital investment in terms of construction of roads, vehicles, and their maintenance.	It uses airways which are natural and hence, there is no cost involved. However the huge cost of construction of aircraft involved. These costs are way high compared to other modes of transport.
Distance
Recommended for a short distance.	Suitable for long-distance.
Charges
Transport charges are not fixed due to high due to increased fuel prices	The transport charges is very high.
Door to door service
It provides door to door services.	It does not provide door to door services.
Means of Transport
It uses animals, animal carts, motor-cycles, three, and four-wheelers.	It uses aircraft, helicopters, jets, etc.
Suitability
It is suitable for transporting goods in relatively smaller quantities for a short distance.	It is suitable for transporting lightweight perishable and valuable goods to any part of the world.
Safety
It provides limited safety to goods from the sun, rain, wind, etc.	Goods are safe as they are specially packed.
Accidents
Chances of accidents are more due to poor road conditions and negligent drivers	Chances of accidents are less because of maintenance and expert pilots.
Ownership
Ownership is in the hands of private parties as well as the government.	It is owned by both the private sector as well as the public sector.

4) Life Insurance and Marine Insurance
Solution:

Life Insurance	Marine Insurance
Meaning
1A contract where by the insurance company undertakes to pay a certain sum of money either on death or maturity (whichever is earlier) for a consideration (premium)	A contract whereby the insurance company undertakes to pay compensation to in insured in case of loss to him due to dangers (perils) of the sea.
Policy taken by
It can be taken by an individual for his own life or for his family members.	It can be taken by exporters, importers, and shipping companies, etc.
Subject matter
In life insurance, the life of the insured is a subject matter	In Marine insurance, goods in the ship, cargo, and freight is the subject matter.
Insurable interest
It must exist at the time of contract	It must exist at the time of contract and also at the time of loss.
Tenure
The policy can be issued for any number of years, even until the death of the assured.	It is generally for a short period and may range from one month to a year. Normally it does not exceed one year.
Compensation
It is paid either on death or maturity whichever is earlier.	It is paid only if there is a loss causing event during the term of the policy.
Principle of Indemnity
It is not applicable as human life cannot be valued in terms of money for calculating the actual loss.	It is applicable as the insurance company compensates for the financial loss and the insured is brought back to the same financial condition that he was before the event.
Number of policies
Insured can take any number of policies on the same life. Compensation is paid on all the policies.	Generally, only one policy can be taken. However, double insurance is possible. However, compensation does not exceed the actual loss.
Beneficiary
The beneficiary can be insured (if he survives the selected term) or else the nominee or the legal heir on the death of the assured.	The beneficiary is the insured person or company.
Surrender of policy
The policy can be surrendered before the expiry of the term subject to certain conditions.	It cannot be surrendered.

5) Savings Account and Current Account
Solution:

Savings Account	Current Account
Meaning
It is that account which is opened by individuals in order to save a part of their income.	It is that account which is maintained by businessman and others who have regular bank transactions.
Withdrawals
Customers can withdraw either by cheques or by withdrawal slips.	Customers can withdraw money by cheques.
Documentation
The bank gives a passbook, cheque book and pay-in-slip book to the customers.	The bank gives a passbook, cheque book, statement of account, and pay-in-slip book to the customers.
Who takes it
It is suitable for fixed income groups, wages, or salary earners.	It is suitable for traders, businessmen, firms, or institutions.
Restrictions
The customer has certain restrictions on withdrawals.	There are no restrictions on the operation of a current account as long as there is balance in the account.
Interest rate
The interest rate is low	Normally interest is not given
Nature of Account
It is of continuous Nature	It is of continuous Nature
Facilities
No overdraft facility is given.	Temporary overdraw facility is given

6) Life Insurance and Fire Insurance
Solution:

Life Insurance	Fire Insurance
Meaning
A contract whereby the insurance company undertakes to pay a certain sum of money either on death or maturity (whichever is earlier) for a consideration (premium)	A contract in which the insurer promises to pay compensation to the insured if something happens to the subject matter due to fire or related events.
Policy took by
It can be taken by an individual for his own life or for his family members.	It can be taken by an individual for their properties or by the businessman. For their goods, properties business liabilities.
Subject matter
In life insurance, the life of the insured is a subject matter	In Fire insurance, the goods and assets or property of the insured is the subject matter.
Insurable interest
It must exist at the time of contract	It must exist both at the time of contract and also at the time of loss.
Tenure
The policy can be issued for any number of years, even until the death of the assured.	It is generally for a short period like one year.
Compensation
It is paid either on death or maturity whichever is earlier.	It is paid only if there is a loss due to fire during the term of the policy
Principle of Indemnity
It is not applicable as human life cannot be valued in terms of money for calculating the actual loss.	It is applicable as the insurance company compensates for the financial loss and the insured is brought back to the same financial condition that he was before the event.
Number of policies
Insured can take any number of policies on the same life. Compensation is paid on all the policies.	Generally, only one policy can be taken but double insurance is possible. However, compensation does not exceed the actual loss.
Beneficiary
The beneficiary can be insured (if he survives the selected term) or else the nomine or the legal heir on the death of the assured.	The beneficiary is the insured who has insured the property or goods
Surrender of policy
The policy can be surrendered before the expiry of the term subject to certain conditions.	It cannot be surrendered.

7) Road Transport and Rail Transport
Solution:

Road Transport	Rail Transport
Speed
Road transport has limited speed due to bad road conditions, accidents, etc.	It has considerable speed since it runs on tracks which rarely gets disturbed
Carrying capacity
It has limited carrying capacity	It has a huge carrying capacity
Cost
It requires limited capital investment in terms of construction of roads, vehicles, and maintenance.	The cost of construction of trains, railway tracks is high. Also, the maintenance of trains, tracks, and stations is high.
Distance
Recommended for a short distance.	Recommended for both short and long-distance.
Charges
Transport charges are not fixed due to high due to increased fuel prices	Transport charges are relatively low and are fixed according to the distance.
Door to door service
It provides door to door services.	It does not provide door to door services
Means of Transport
It uses animals, animal carts, motor-cycles, three, and four wheelers.	It uses passenger trains and goods trains.
Suitability
It is suitable for transporting goods in relatively smaller quantities for a short distance.	It is suitable for transporting heavy goods in large quantities over long distances.
Safety
It provides limited safety to goods from the sun, rain, wind, etc.	Goods are kept in locked wagons which provide protection against sun, wind, rain, etc.
Accidents
Chances of accidents are more due to poor road conditions and negligent drivers	Chances of accidents are less because of one-way track and good signal system.
Ownership
Ownership is in the hands of private parties as well as the government.	Ownership is in the hands of the Government.

8) Rail Transport and Air Transport
Solution:

Rail Transport	Air Transport
Speed
It has considerable speed since it runs on tracks which rarely gets disturbed	It is the fastest mode of transport.
Carrying Capacity
It has a huge carrying capacity	It has limited carrying capacity
Cost
The cost of construction of trains, railway tracks is high. Also, the maintenance of trains, tracks, and stations is high.	It uses airways which are natural and hence, there is no cost involved. However the huge cost of construction of aircraft involved. These costs are way high compared to other modes of transport.
Distance
Recommended for both short and long-distance.	Suitable for long-distance.
Charges
Transport charges are relatively low and are fixed according to the distance.	The transport charges is very high.
Door to door Service
It does not provide door to door services	It does not provide door to door services.
Means of Transport
It uses passenger trains and goods trains.	It uses aircraft, helicopters, jets, etc.
Suitability
It is suitable for transporting heavy goods in large quantities over long distances.	It is suitable for transporting lightweight perishable and valuable goods to any part of the world.
Safety
Goods are kept in locked wagons which provide protection against sun, wind, rain, etc.	Goods are safe as they are specially packed.
Accidents
Chances of accidents are less because of one-way track and good signal system.	Chances of accidents are less because of maintenance and expert pilots.
Ownership
Ownership is in the hands of the Government.	It is owned by both the private sectors as well as public sector.

9) Current Account and Fixed Deposit Account.
Solution:

Current Account	Fixed Deposit Account
Meaning
It is that account which is maintained by businessman and others who have regular bank transactions.	It is that account where a fixed sum of money is deposited for a fixed period.
Withdrawals
Customers can withdraw money by cheques.	Customers cannot withdraw during the specified period.
Documentation
The bank gives a passbook, cheque book, statement of account, and pay-in-slip book to the customers.	The bank gives a fixed deposit receipt to the customers.
Who takes it
It is suitable for traders, businessmen, firms, or institutions.	It is suitable for any person with temporarily idle cash.
Restrictions
There are no restrictions on the operation of a current account as long as there is balance in the account.	The amount becomes due on the expiry of the fixed period. If withdrawn earlier, then the rate of interest will be less than applicable.
Interest rate
Normally interest is not given	The interest rate is higher, longer the period, the higher will be the rate of interest.
Nature of Account
It is of continuous Nature	It is for a fixed period of time except when the fixed deposit receipt is renewed.
Facilities
A temporary overdraw facility is given	90% of the amount of fixed deposit can be given as loan.

Distinguish between

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