Irrevocable L. C. An irrecoverable L. C can be cancelled or amended or modified by the opening bank only with the consent of parties involved. Domestic bank: These are the banks that are registered with the country. Non legal tender money.
- Bcom part 1 banking and finance notes class 10
- What is banking and finance course all about
- Bcom part 1 banking and finance notes answers
- Bcom part 1 banking and finance notes blog
It means that any one will be willing to accept it as a mean of payment and in the discharge of any obligation. Transferable L. C. It is used where original beneficiary (exporter) is not a manufacturer. If supply of quantity of money is decreased but credit money is increased then the prices may not be change. This expense includes wages, carriage, rent, repairs, interest, commission, etc. Money banking finance book for bcom part 1 Archives. Again the small businessman and the formers will remain deprived of the bank loans. Assumptions: No change in barter trade: It is assumed that there is no change in barter trade. Commercial banks makes the payments on behalf of the customers.
Letter of credit is also known as "documentary credit". Anti- cycle measures: The anti cycle measures are adopted to remove the fluctuation in the business cycle which can be possible with full control on supply of money in the country. Cheques: A cheque is an unconditional order by the client on his bank to pay a certain sum of money to him or to any other party. Financial Base: The fund supplied by the owners providing a financial base to the capital structure of a business. MONEY ,BANKING & FINANCE NOTES B.COM PUNJAB UNIVERSITY. Many of such branches working at loss. The person who has kept his account with bank can ask for overdraft and the bank can grant him overdraft.
What Is Banking And Finance Course All About
The hire skilled person we need finance. Reduction in Cost Price: The cost of production will be low as there is no burden of interest. According to Irving Fisher: "Other things remaining the unchanged as the quantity of money in circulation increases, the price level also increases in direct proportion and the value of money decrease and vice". Different negotiable instruments also work on the basis of money. The central bank cannot be closed up even if working at loss. There were complaints from the customers regarding. Garnishee order: If the court orders to the customer's bank to stop payment. Rate Us 5Planning to buy something from Amazon? Bcom part 1 banking and finance notes class 10. Volume of money in the interest of general public welfare"(. Decrease in import duty: If the duty on imported goods is reduced it will reduce the cost of local sellers and enable them to sell their products in the local market at lower prices. Inflation is mainly of two types. Causes of privatization: - The nationalization banks were working under the political pressure. At Call or call loans: These are very short period loans.
· Foreign Exchange Reserve. Lost cheque: If the cheque of the customer has been lost and the banker has informed about this event, the bank will not make payment of this cheque. 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. What is banking and finance course all about. Risk of heavy losses: The business depends on the borrowed money possess less potential to face any loss. Demerits of paper money. 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. Banks are classified into various types on the basis of their functions, ownership, domicile etc. Such blocked money can be reissued after the certain time period.
The use of money has made it possible to measure output, costs and efficiency in term of definite units of money. Decentralization of operation: To run the banks a board of director will be setup. Demand pulls inflation: Demand pulls inflation occurs when there is a general increase in price level due to increase in aggregate demand for goods. Maintain secrecy of accounts: The bank is bound to maintain the secrecy of his customer account. These are certain products and commodities or services for which an organization is to purchase patent rights, copyrights or goodwill etc. The banker after discounting, pays the value of the bill to the holder. Bcom part 1 banking and finance notes blog. Garnishee order: If a company is winding up the order of the court, the banker then cannot honour the cheques of the customer. Monetary reforms: In order to control inflation the government can implement monetary reforms. "A bank, which control credit.
Galloping or hyper inflation: In a situation where price level rises very rapidly within a short period of time, the inflation is called galloping inflation. So government nationalized them in 1974. The objects of monetary policy differ from country to country according to their economic conditions. If any AD appears on download click please wait for 30sec till it gets completed and then close it, you will be redirected to pdf/ppt notes page.
Bcom Part 1 Banking And Finance Notes Blog
C- Remittance or Transfer of Money. In our country state Bank of Pakistan is the country's central bank. HOW THE USE OF MONEY HAS REDUCED THE PROBLEM OF BARTER SYSTEM. It may go to 5% p. a. Less finance less business. What are the factors that affecting rate of exchange.
· Others: Central bank performs some other duties as well. Cost push inflation: When the cost of production or the remuneration of factors of production increases, there will be an increase in prices causing cost push inflation. People deposit their idle funds in banks because banks allow them interest. In this respect which is dependent upon the buyer's default.
1. creeping inflation. Increase in employment: Due to increase in investment & increase in production there are more opportunities for people to get employed. Idle funds: If the firm's business is subject to reason, the owner's funds would remain idle in cash balances by which the volume of income is greatly affected. Agricultural Development Bank of. Liquidity of wealth: Being store of value and generalized purchasing power money enable people to keep their wealth in most liquid form and to purchase different goods and services for it. It is also known as "Time liabilities of bank". Agricultural bank provides short term and long term loans to the farmers and land owners at lower rate of interest.
The insurance cover note. Update 17 Posted on March 24, 2022. While other goods like wheat lose their quantity and quality if stored for longer time period. Briefly discuss the operation of L. C? All these factors bring more money and create inflation. Insolvency of a customer: On the receipt of notice of insolvency of a customer, the bank cannot honour the cheque drawn by the customer. Elasticity: The good money material has the quality of elasticity. Cost pushes inflation: Cost push inflation occurs where there is an increase in the prices due to increase in cost of production. · To provide sound finance base.
Increase efficiency of banks: Thus due to the privatization of banks, the efficiency of banking system increase. Confirmed Irrevocable L. C: It cannot be amended or cancelled even if there is consent among the parties involved. Right to sue bank for disclosing secret information: A customer has a right to sue and demand compensation if the bank fails to maintain the secrecy of his account. Full bodied coins: When the face value of the coin is equal to the value of metal contained in the coin, the coin is called a full bodied coin.