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Definition Of Commercial Bank And Its Characteristics

A commercial bank is a financial intermediary that oporates for profit motive. It collects savings from public by acceptin their surplus as deposits and grants loans to individuals, firms and the government. In modern times, the bank also acts as an agent for its customers. A few definitions are given hereunder to make the meaning of the term ‘bank’ more clear. (1) Findlay Shirras. Defines a banker or a bank as “a person, firm or company having a place of business where credits are opened by deposits or collection of money …

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Difference Between Transferability And Negotiability

As per Negotiable Instruments Act, 1881, where a debtor has drawn a negotiable instrument in favor of his creditor and has also executed a mortgage to provide further security, the creditor has a right to sue on the basis of negotiable instrument even without exhausting security in the shape of mortgage. The negotiable instruments are simply transferable from person to person and the ownership of the property in the instrument may be passed on- by mere delivery in case of a bearer instrument, by endorsement and delivery, in case of …

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Two Main Types Of Negotiable Instruments

Two Main Types Of Negotiable Instruments

The negotiable instruments are simply transferable from person to person and the ownership of the property in the instrument may be passed on. A negotiable instrument confers absolute and good title on the transferee, who takes it in good faith, for value and without notice of the fact that the transferor had defective title thereto. The holder in due course, possesses the right to sue upon the instrument in his own name. Thus, he can recover the amount of the instrument from the party liable to pay thereon. Types of …

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Essential Features Of Negotiable Instruments

Essential Features Of Negotiable Instruments

Features of Negotiable Instruments: A negotiable instrument is a transferable document either by the application of the law or by the custom of the trade concerned. The special feature of such an instrument is the privilege it confers on the person who receives it bona fide and for value, to possess good title thereto, even if the transferor had no title or had defective title to the negotiable instruments. Essential Features of Negotiable Instruments: The following are the essential features of negotiable instruments: (i) Transferability is an essential feature of …

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Forex Trading Problems: Maintain Credit Balance In Nostro Account

FXCM Inc. of Australia is a leading Forex (Foreign Exchange) trading Company based in Sydney. It has many Forex experts who provide excellent customer services round the year. FXCM offers fast and reliable execution on MT4 platform along with other platforms of Forex transactions. Whether you are a newbie or expert in online Forex trading, FXCM has customized account types and wide range of services for all levels of traders. FXCM Inc. has the following dealing position in Pound Sterling: Opening Balalnce in Barclays Bank London GBP  20000 O/D Opening …

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Forex Trading Problems: What Must You Do To Make It Square?

FXCM Inc. of Australia is a leading provider of Forex (Foreign Exchange) trading; it has headquartered in Sydney with many expert professionals who offer excellent customer service and care 365 days a year. It is regulated in Australia and some other jurisdictions globally. FXCM offers fast and reliable execution on award-winning MT4 platform along with other specialty platforms. Whether you are a newbie to online Forex trading or have sufficient experience in investing, FXCM has customizable account types and wide range of services for all levels of traders. FXCM Inc. …

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What Are The Risks Of Capital Account Convertibility

Convertibility means the ability of the residents to convert local currency into foreign currency at the ongoing exchange rates for redeeming their external obligations. The objectives of IMF (International Monetary Fund) regarding Convertibility was to assist in the establishment of multilateral system of payments in respect of current transactions between member countries and in the elimination of foreign exchange restrictions which hampers world trade. Capital Account Convertibility Capital Account Convertibility is a distinct characteristic of a country’s financial regime that focuses on the ability to carry out transactions of domestic …

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Limitations of Monetary Policy in Developing Economy

Limitations of Monetary Policy

Monetary policy in a developing country is an important instrument in the hands of the central bank which may be used to ensure economic growth. However, the success of monetary policy is subject to some crucial limiting factors. The Limitations of Monetary Policy in Developing Economy is discussed below: Limitations of Monetary Policy in Developing Economy (i) Underdeveloped Money and Capital Market. The central bank cannot effectively implement the various credit control measures in the absence of well-organized money and capital markets. Underdeveloped countries do not have well developed and …

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Objectives of Monetary Policy in Underdeveloped Countries

Objectives of Monetary Policy

 Prof. Ragnar Nurkse  defines Underdeveloped countries as “those which compared with the advanced countries are under equipped with capital in relation to their population and natural resources. Thus, underdeveloped countries have plenty of man power and natural resources. But they are un-utilized or underutilized because of the state of their economy being underdeveloped. This state of economy is responsible of money of the ills like unemployment, low per capita income, business fluctuations, price instability, lack of credit facility, lack of capital formation, disequilibrium in the balance of payments situation etc. …

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What Are The Objectives of Monetary Policy?

objectives of Monetary policy

What Is Monetary Policy? Monetary policy refers to those policy measures of the central bank which are adopted to regulated the volume of currency and credit in a country add thus affecting the monetary system of the country. Paul Einzing defines the monetary policy as “the effort to reduce to a minimum the disadvantages and increase its advantages resulting from the existence and operation of a monetary system”. So, The Objectives of Monetary Policy to reduce the disadvantages and increase its advantages. Broadly speaking, monetary policy refers to the policy …

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