Money ,Banking & Finance Notes B.Com Punjab University

Saturday, 6 July 2024

This cause inflation. Once it suffers loss it becomes cumulative in nature. Standard of value: Money is used to measure the value of every thing in the same way as we can measure weight in kg and distance in km. They also issue letter of credit. Financer & Finance Advisor & Advisee. The important legal grounds for stopping payment in the account are as follows; 1. Rate of interest: The bank rate also influence exchange rate. The depositors can withdraw the money deposited in the current account any time. Money banking finance book for bcom part 1 Archives. Expansion in credit: The credit expansion also creates inflation. Finance and capital markets. For the selling on credit the businessmen need finance. Bcom Part 1 Money Banking & Finance. When M is double: M = 200, M' = 400.

Bcom Part 1 Banking And Finance Notes De Version

Short periods: The theory applies to the changes in prices only in short periods. In case the government cancels the currency notes the holder has to bear full loss. 100. it has this value because it has been declared as legal money by the government, so it is generally accepted as a medium of exchange. MONEY ,BANKING & FINANCE NOTES B.COM PUNJAB UNIVERSITY. In this case customer is bailor and the banker as bailee. In the whole process the bank earns money.

Bcom Part 1 Banking And Finance Notes.Html

The main object of these banks is the welfare of public and profit is not so important e. SBP. Branch is not particular: If the cheque is wrongly presented to another branch in which drawer has no account then the banker can refuse to make payment of cheque. Bcom part 1 banking and finance notes de. Control over expenses: The expenses of nationalized banks have been controlled to a large extent. "the general principles of central bank is that it should act only in public interest for the welfare of country as a whole and without regard to profit as a primary consideration". Advisor & Advisee: Assignor & Assignee: When any obligation or property is assigned to the bank then the bank becomes assignee and client becomes assignor. Death of customer: The banker can not make the payment of the cheque after the notice of customer's death has been received. With the use of money technology has developed, research work has increased: trade has expanded which results in overall economic development.

Is Banking And Finance A Good Course

G. the value of the paper of 100 rupee note is almost nil but its purchasing power is equal to Rs. Bcom part 1 banking and finance notes.html. Inflation is classified into the following categories on the basis of degree of control: - open inflation. The cost of printing currency notes a minting of coins must be low. Banker's Bank: Central Bank is a banker's bank in following ways: · Maintenance of cash reserve: Every commercial bank is required to keep a portion of its deposit as reserve with central bank. Inconvenience of small denominators: Paper issue is not for small monetary denominators such as 1, 10, 25, 50 paisa and even for Rs. Remedies/control of inflation.

Financial Accounting Bcom 1St Year Notes

Torned cheque: If the cheque presented to the bank for payment is wholly or partly torn or repaired, it may be returned dishonor by bank. An indent or Performa. Full employment: Monetary policy's another object is to achieve full employment but without inflation. Boom or prosperity: It is a state of overall happiness.

Bcom Part 1 Banking And Finance Notes In English

18. islamization: Islamic economic system is the best for our economy. Fisher's Equation: PT = MV + M'V'. Perhaps such expenses were more than Rs. Banks launch different saving schemes to attract the people. COOPERATIVE BANKS: These banks provide services for the small scale business and provide short and medium term loans. Ease of borrowing and lending: The money has removed the inconvenience of future payments. Independent variables: All the assumptions are interlinked. Debtors & Creditor Principal& Agent Mortgagor & Mortgagee. Banking operation will be performed by committee at head office. In the modern age the bank issue credit cards to their customers. These assets are land, building, plant and machinery furniture & fixture etc of these assets is possible with finance. Amount is not sufficient: The bank can refuse to pay the amount of cheque if the account of a customer shows a less balance than the amount of cheque. Is banking and finance a good course. 7. imported inflation.

Bcom Part 1 Banking And Finance Notes De

Rate Us 5Planning to buy something from Amazon? The main purpose of the nationalization of banks was to increase in government revenue and better utilization of monetary resources of the country. Decreasing investment: As a result of decreased profits of the business class the investment level also decreases. · Allied bank limited. In this type of finance interest is not payable to creditors. There are many forms of money. Economics of Money and BankingColumbia University. They work under the supervision of SBP and try to increase or decrease the volume of money according to the needs of the economy. It may go to 5% p. a. The money that a person accepts as a means of payment and in discharge of debt is called legal tender notice. It can be easily kept in pocket.

Useful in emergency: The paper money can be used in emergency life war and floods. Scarcity of money will keep people always working hard to earn more money in order to meet requirements of life. These banks have been established to promote saving habits among the people of low earning. Frequently Asked Questions. Right of correction: In case of over crediting or over debting a customer has right to get his account corrected. Commercial bank cannot issue the notes. Decreasing production: As a result of decreasing in investment the production level also decreases. The value of the horse is much more than a pen. Rise in the price of imported goods: When the prices of the imported raw material used in local manufacturing increases, the cost of manufacturing goods goes up. In this method the government appoints a price control committee to maintain stable price level in the country. The movement of land and building is not possible at all. The banker act as attorney and representative of his customers.

Both serve the society to grow and the economy to expend. The relationship between banker and customer can be stated in two groups: a- General Relationship. Inefficient counters services. Insanity of a customer: If an insanity of a customer is established, the bank will close his account. Stability of value: The good money material should be comparatively stable in value. Due to competition the banks increase the level of services provided to their customer. Discuss the nature of relationship between banker and customer?

Decreasing prices: During this stage the general price level starts to decline as a result the profit of businessmen also decreases. Collection of Zakat. Foreign investment: When there is an increase in the foreign investment in the country it also increases the supply of foreign exchange due to which value of home currency increases. He is an intermediary party. When tax is collected in the form of goods it is very difficult for the government to spend such goods for development projects. Restriction on recruitment. Low level of investment: During this stage investors stop investing and overall investment level reaches to its minimum.

Date of cheque is not clear: Date is very important factor of a cheque and a banker has a right to reject the cheque if the date is not properly entered or properly written. Risky Enterprises: When a business uses its own capital for investment in business, it avoids taking risk. This expense includes wages, carriage, rent, repairs, interest, commission, etc. Therefore funds are not available for business.