1) A commercial bank can create money by accepting deposits from customers. When a customer deposits money in their bank account, the bank records the deposit as a liability on its balance sheet which increases the money supply.
2) An example is provided of a new bank, Bank of Nebaj, being established with Q250,000 in capital stock and purchasing property and equipment. It then accepts a Q100,000 deposit from customers.
3) By law, banks must hold required reserves equal to a percentage of deposits. The Bank of Nebaj deposits Q110,000 in reserves at the Federal Reserve bank to meet its 20% required reserves ratio on deposits.
credit is very important for business and economy. growth of economy depends on credit creation. commercial banks play an important role in it. but if it is uncontrolled then it can create fluctuations in economy. it can bring inflation or recession in economy.
in this PPT how commercial banks distribute loan and how it is affected by various factors are explained.
credit is very important for business and economy. growth of economy depends on credit creation. commercial banks play an important role in it. but if it is uncontrolled then it can create fluctuations in economy. it can bring inflation or recession in economy.
in this PPT how commercial banks distribute loan and how it is affected by various factors are explained.
Economics project for class 12 on money and banking. it explains all the functions about RBI and includes everything needed to achieve good marks in project work.
Economics project for class 12 on money and banking. it explains all the functions about RBI and includes everything needed to achieve good marks in project work.
Credit Creation With Modern and Fresh Look.This PPt tells about the method of Credit Creation.I think this will help you a lot.I have made possible to enhance the look this will increase your impression in front of your classmates,business partners and your seniors.Thanks :-)
Introduction
In life, there are universal laws that govern everything we do. These laws are so perfect that if you were to align yourself with them, you could have so much prosperity that it would be coming out of your ears. This is because God created the universe in the image and likeness of him. It is failure to follow the universal laws that causes one to fail. The laws that were created consisted of the following: ·
Law of Gratitude: The Law of Gratitude states that you must show gratitude for what you have. By having gratitude, you speed your growth and success faster than you normally would. This is because if you appreciate the things you have, even if they are small things, you are open to receiving more.
Law of Attraction: The Law of Attraction states that if you focus your attention on something long enough you will get it. It all starts in the mind. You think of something and when you think of it, you manifest that in your life. This could be a mental picture of a check or actual cash, but you think about it with an image.
Law of Karma: the Law of Karma states that if you go out and do something bad, it will come back to you with something bad. If you do well for others, good things happen to you. The principle here is to know you can create good or bad through your actions. There will always be an effect no matter what.
Law of Love: the Law of Love states that love is more than emotion or feeling; it is energy. It has substance and can be felt. Love is also considered acceptance of oneself or others. This means that no matter what you do in life if you do not approach or leave the situation out of love, it won't work.
Law of Allowing: The Law of Allowing states that for us to get what we want, we must be receptive to it. We can't merely say to the Universe that we want something if we don't allow ourselves to receive it. This will defeat our purpose for wanting it in the first place.
Law of Vibration: the Law of Vibration states that if you wish on something and use your thoughts to visualize it, you are halfway there to get it. To complete the cycle you must use the Law of Vibration to feel part of what you want. Do this and you'll have anything you want in life.
For everything to function properly there has to be structure. Without structure, our world, or universe, would be in utter chaos. Successful people understand universal laws and apply them daily. They may not acknowledge that to you, but they do follow the laws. There is a higher power and this higher power controls the universe and what we get out of it. People who know this, but wish to direct their own lives, follow the reasons. Successful people don't sit around and say "I'll try," they say yes and act on it.
Chapter - 1
The Law of Attraction
The law of attraction is the most powerful force in the universe. If you work against it, it can only bring you pain and misery. Successful people know this but have kept it hidden from the lower class for centuries because th
know the Importance and Need of Bank Reconciliation Statement.
Understand the Causes for Disagreement between Cash Book and Pass Book Balances.
Prepare Bank Reconciliation Statement.
Introduction to RBI, Meaning of Central Bank, Functions of RBI, RBI as Apex Bank, Credit Control Concept, Concept of CRR, Concept of SLR, Qualitative And Quantitative methods of credit controlby RBI
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
2. *COMMERCIAL BANKS CREATE AND
DESTROY MONEY
*How can a commercial bank create
money? If it can create money, it can
destroy money, too.
*We’ll begin with the organization of a
local commercial bank.
3. *COMMERCIAL BANKS CREATE AND
DESTROY MONEY
*TRANSACTION 1: Creating a Bank
*Suppose the citizens of Nebaj, Quiche
decide their town needs a new commercial
bank to provide banking services for that
growing community. Once they obtain the
permit for their bank, they turn to the task of
selling Q250,000 worth of capital stock
(equity shares) to buyers, both in and out of
the community. The Bank of Nebaj comes
into existence. What does its balance sheet
look like at this stage?
4. * FORMATION OF A COMMERCIAL BANK
The bank now has Q250,000 worth of capital stock
outstanding. This cash is an asset to the bank.
Cash held by a bank is called vault cash. These
shares of stock outstanding constitute an equal
amount of claims that owners have against the
bank’s assets. These shares of stock constitute
the net worth of the bank.
CREATING A BANK
Balance Sheet 1: Nebaj Bank
ASSETS LIABILITIES
Cash Q250,000 Capital Stock Q250,000
5. * BUYING PROPERTY AND EQUIPMENT
TRANSACTION 2: Acquiring Property and
Equipment
The directors of the bank purchase a building for
Q220,000 and pay Q20,000 for office equipment.
Now the balance sheet looks like this:
ACQUIRING PROPERTY AND EQUIPMENT
Balance Sheet 2: Nebaj Bank
ASSETS LIABILITIES
Cash Q10,000 Capital Stock Q250,000
Property Q240,000
6. * DEPOSITS AT A COMMERCIAL BANK
TRANSACTION 3: Accepting Deposits
Now the bank is operating, suppose the citizens
and businesses of Nebaj decide to deposit
Q100,000 in the Nebaj bank. What happens to
the balance sheet?
ACQUIRING PROPERTY AND EQUIPMENT
Balance Sheet 2: Nebaj Bank
ASSETS LIABILITIES
Cash Q110,000 Checkable
Property Q240,000 Deposits Q100.000
Capital Stock Q250,000
7. * CHANGE IN COMPOSITION OF THE MONEY
SUPPLY
Now the there has been no change in the
economy’s total supply of money as a result of
this transaction, but a change has occurred in the
composition of the money supply. Bank money, or
checkable deposits, has increased by Q100,000,
and currency held by the public has decreased by
Q100,000. Currency held by a bank, is not part of
the economy’s money supply.
A withdrawal of cash will reduce the bank’s
checkable deposit liabilities and its holdings of
cash by the amount of the withdrawal, which
would change the composition, but not the total
supply, of the money in the economy.
8. * REQUIRED RESERVES
All commercial banks that provide checkable
deposits must by law keep required reserves.
Required reserves are an amount of funds equal
to a specified percentage of the bank’s own
deposit liabilities. A bank must keep these
reserve’s on deposit with the Federal Reserve
Bank in its district or as cash in the bank’s vault.
To simplify, we’ll the Bank of Nebaj keeps its
required reserves entirely as deposits in the Fed.
But remember: the vault cash is counted as
reserves, and real-world banks keep a significant
portion of their own reserves in their vaults.
10. * DEPOSITING RESERVES AT THE FED
TRANSACTION 4: Depositing Reserves in a
Federal Reserve Bank
Suppose the required reserve ratio for checkable
deposits in commercial banks is 1/5 or 20
percent. By depositing Q20,000 in the Federal
Reserve Bank, the Nebaj bank will just be
meeting the required reserve ratio between its
reserves and its own deposit liabilities.
But suppose that the Nebaj Bank anticipates that
its holdings of the checkable deposits will grow in
the future.
11. * DEPOSITING RESERVES AT THE FED
(2) Vault cash can be counted as reserves, we can
assume that all the bank’s cash is deposited in
the Fed and therefore constitutes the commercial
bank’s actual reserves. This way, we don’t need
to bother adding two assets – “cash” and
“deposits at the Fed” – to determine “reserves”.
After the Nebaj Bank deposits Q110,000 or
reserves, its balance sheet becomes:
Depositing Reserves at the Fed
Balance Sheet 4: Nebaj Bank
ASSETS LIABILITIES
Cash Q0.00 Checkable
Reserves Q110,000 Deposits Q100,000
Property Q240,000 Capital Stock Q250,000
12. * EXCESS RESERVES
A bank’s excess reserves are found by subtracting
its required reserves from its actual reserves:
Excess Reserves =
actual reserves – required reserves
In this case:
Actual reserves Q110,000
Required reserves - 20,000
Excess reserves Q 90,000
13. * EXCESS RESERVES
The only reliable way to compute the excess
reserves is to multiply the banks checkable-
deposits by the reserve ratio to obtain the
required reserves (Q100,000 X .20 = Q20,000) and
then to subtract the required reserves from the
actual reserves listed on the asset side of the
bank’s balance sheet.
Test your understanding by computing the bank’s
excess reserves from balance sheet 4, assuming
that the required reserve ratio is: (1) 10 percent,
(2) 33⅓ percent, and (3) 50 percent.
14. * CHECK CLEARING PROCESS
The reserves created in transaction 4 are an asset
to the depositing commercial bank because they
are a claim this bank has against the assets of
another institution – the Federal Reserve Bank.
The checkable deposit you get by depositing
money in a commercial bank is an asset to you
and a liability to the bank.
In the same way, the reserves that a commercial
bank establishes by depositing money in a
banker’s bank are an asset to that bank and a
liability to the Federal Reserve Bank.
15. * CLEARING A CHECK DRAWN AGAINST THE BANK
Assume that Juan Perez, a Nebaj farmer,
deposited a substantial portion of the Q100,000 in
checkable deposits that the Nebaj bank received
in Transaction 3. Now suppose that Juan buys
Q50,000 of farm machinery from the Caterpillar
Company of Guatemala City. Juan pays for his
machinery by writing a check for Q50,000, against
his account in the Nebaj Bank, to the Caterpillar
Co. How is this check collected or cleared, and
what effect does the collection of the check have
on the balance sheet of the banks involved in the
transaction?