Question 3 - Figure it out (Page 260) - Credit and Debit - Chapter 10 Class 6 - The other side of Zero (Ganita Prakash)

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Question 3 - Figure it out (Page 260) Why is it generally better to try and maintain a positive balance in your bank account? What are circumstances under which it may be worthwhile to temporarily have a negative balance?Let’s answer this one by one Why is it better to maintain a positive balance? It is generally better to keep a positive balance to avoid extra charges. Some banks charge an additional amount, like interest or a fee, if your balance becomes negative. When might a temporary negative balance be worthwhile? A temporary negative balance might be worthwhile for a strategic purchase or investment. The chapter gives an example where a person makes a "major purchase for your business of ₹150," which causes the balance to become negative. However, this purchase allows them to earn ₹200 the next day, resulting in a net profit. In such cases, temporarily having a negative balance can be a strategic decision to achieve a larger financial gain