Beruflich Dokumente
Kultur Dokumente
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01
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CHAPTER
LEARNING OBJECTIVES
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History taught us that great nations were built either through war (example
Alexanders Greece), through message of peace (example Ashokas India)
or through financial strength (example Croesus Lydia). Of the three, it was
Croesus principle of utilising financial strength to create formidable nation
which requires greater discussion.
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-Adapted from
The Ascent of Money
by Niall Ferguson
(Penguin 2009)
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In Spain, its main cause was arguably the flood of bullion Such was the dominance
(precious metal coins) from the Americas, along with of the Spanish Pieces of
Eight that when the British
population growth, and government spending.
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authorities in Australia
wanted to create a local
currency, they converted
these Pieces of Eight into
five shilling coins.
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Glossary
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Cyrus:
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Croesus:
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Peru:
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Luxury
Luxury goods are products and services that
Products: are not considered essential.
Inflation: Inflation is a general rise in prices of goods
and services. Inflation results in loss of value
of money.
Hyper
Inflation:
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Pieces of
Eight:
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02
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CHAPTER
LEARNING OBJECTIVES
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Do You Know!!
In India, we now have a
creditworthiness check
body called the CIBIL.
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National Finance Olympiad
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The concept of Loan can broadly be divided as Loans for the central bank manages
these interest rates. In
Consumption and Loans for Production.
India, the role of Central
Historically and even today, loans for consumption Bank is played by the
purposes are condemned as imprudent. Going by the Reserve Bank of India.
same logic you may raise a moral question over the
What Hammurabi wrote is
usage of personal credit cards.
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Glossary
Risk is the chance that an investments actual
return will be different than expected. Risk
includes the possibility of losing some or all
of the original investment.
Risk of
Capital:
Risk of
Interest:
Risk of
Time
Frame:
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Risk:
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Richter
Scale:
Pledge:
Default:
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Medici
Family:
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Money
A money changer is a person / institution
changers: which exchanges the currency of one country
for that of another, at a fixed or variable
rate.
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FUNDAMENTALS OF
BANKING SYSTEM
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LEARNING OBJECTIVES
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Nationalization of Banks
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Private
Sector Banks
(25)
Foreign
Banks in
India (39)
Regional
Rural Bank
(357)
Nationalized
Banks (19)
State Bank of
India & its
Associates (7)
Old Private
Banks (17)
New Private
Banks (8)
Scheduled Urban
Cooperative Banks
(53)
Scheduled State
Cooperative Banks
(31)
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Public Sector
Banks (27)
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Foreign Banks
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Deposits
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Types of Accounts
SOME IMPORTANT
FACTS ABOUT BANKS
What is the minimum
deposit required for
opening a FD
Rs. 10,000
What is the multiple in
which we can open a FD
There is no fixed multiple.
Current Accounts
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Users
Businessmen
Joint Stock Companies
Institutions
Profit making bodies
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For RD:
Minimum balance 12
months
Maximum balance Upto
12 years
Savings Account
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Dr. D. Subbarao
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Dr. Y.V.Reddy
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Dr. C. Rangarajan
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S.Venkitaramanan
R.N. Malhotra
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A. Ghosh
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Dr. I.G.Patel
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M. Narasimham
K.R. Puri
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S. Jagannathan
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B.N. Adarkar
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L.K. Jha
P.C. Bhattacharyya
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H.V.R. Lengar
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K.G. Ambegaonkar
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04
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CHAPTER
LEARNING OBJECTIVES
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Cheque
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Types of Cheques
Bearer Cheque
Bearer cheque is a cheque on which the words or
bearer appearing on the face of the cheque are not
cancelled as well as not crossed. The amount can be
paid to any person who presents the cheque.
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Order Cheque
Order cheque is a cheque on which the words or
bearer appearing on the face of the cheque are
cancelled and or order is written. This type of the
cheque is payable only to the payee.
Uncrossed/Open Cheque
Uncrossed cheque is one which is not crossed. It is also
known as open cheque. An open cheque can be a
bearer cheque or order cheque.
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Crossed Cheque
Crossed cheque is one in which two parallel lines
are drawn on the face of the cheque. In such type
of cheque the amount is credited only in the payees
account.
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Loans
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Types of loans
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Dos
Always compare
the total amount
repayable.
Lower amount
repayable is always
preferred.
Inquire about penalties
for early repayments.
Dont
Avoid taking a secured
loan.
Avoid taking a loan to
pay off previous debt.
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Key Differences
Unsecured Debt
between
Secured
or
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Secured Loans
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Unsecured Loans
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Time Frame
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Personal Loan
Personal loan is a short-term loan provided to meet out
personal requirements like medical expenses, marriage
expenses, paying bills, etc. It is provided by keeping in
mind the repaying capacity of the borrower.
Vehicle Loan
Vehicle loan is provided for purchase of car or other
vehicles either for personal or business purposes.
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Home Loan
Home loans are provided for purchase of a new house/
land or for construction of a house. Rate of interest
charged on these houses may be fixed or fluctuating.
Fixed rate of interest It remains fixed throughout the
period of loan
Fluctuating rate of interest Interest rate changes
according to the current rate in the market.
Business Loan
Business loan is given to business by banks/individuals/
organizations. It may be used to fund large capital
expenditures or operations that a business cannot
afford.
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Holiday Loan
Holiday loan is given to meet out the expenses of a
holiday trip. It is given considering the financial position
of a borrower to repay it.
Letter of Credit:
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Two counter-parties
involved in a trade do
not trust each other.
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BANK BOI
CLIENT - AK
BANK BOA
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CLIENT - XYZ
BOI
LC
AK
BOA
XYZ
TRADE
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Online Banking:
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Economics
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National Finance Olympiad
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National Finance Olympiad
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National Finance Olympiad
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National Finance Olympiad
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