At this point, you should have firmly in mind the main goals of macroeconomics from welcome to economics economic growth, low unemployment, and low inflation. Private banking typically entails a private banker helping a customer with only their banking. With the help of mobile, banking user can transfer funds, and pay bills, checking account balance, study your recent transaction, block your atm card, etc. It simplifies life for some people and for them it is frankly a better way to bank.
It is simply the use of electronic and telecommunications network for delivering various banking products and services. To control inflation, the volume of money need to be reduce. Internet banking security internet banking is a new specific banking area, part of e banking industry, which allows people to interact with their banking accounts virtually. The insurer cannot identify the good and bad risks, even though the insured have some idea whether they are bad or good risks. Financiers and the financial systems they inhabit benefit many people in wealthier countries. It may be in the form of cash and currency or bank credit, bank papers like cheques. Banking financial services management notes, book, ebook for. Avoid the queue or delays and try our simple and secure internet banking facility for an unmatched online banking experience. Five advantages of banking online make money personal. Money and banking lecture notes this course note begins by answering the questions what is money and why are money and financial markets important to any smoothly functioning economy. Introduction internet banking or ebanking means any user with a personal computer and a browser can get connected to his. In other words, bank customers need the banks to issue the notes that.
May 04, 2016 but before going towards the types of paper money, lets talk about paper money. It is a transformational decision taken by the government to ban rs. Commodity money is a good whose value serves as the value of money. Pdf prompted by technological advances and a decline in cash usage, many central banks are investigating whether it would be possible to issue a. Paper money is generally accepted in daily transactions as a medium of exchange. The advantages or uses of money can be best understood by considering the system in which money is absent. Cleaning old bank notes with carbon dioxide is better than destroying them.
The discussion of money and banking is a central component in the study of macroeconomics. Be available when and where your customers want you to be. Money may be defined as anything which is generally acceptable as a medium of exchange and at the same time acts as a measure, store of value and standard of deferred payment. Bank money is the form of cheques, bills of exchange, a promissory notes is not legal tender money. It was designed to secure certain recompenses and advantages. We have yet to discuss money and its role in helping to achieve our macroeconomic goals. Currency notes, therefore, are the cheapest media of exchange. Advantages of ebanking online banking can be faster and more convenient than visiting a bank branch in person or conducting business over the phone. Financial inclusion pmjdy india post payments bank. E banking services provide customer access to accounts, the ability.
Ebanking use a smart card with a prepaid amount of money embedded in it for use instead of cash at a pay phone, expressway road toll, or on college campuses at. In our example, the money multiplier is equal to 110% 1. A banknote is payable to the bearer on demand, and the amount payable is apparent on the face of the note. Introduction to money and banking principles of economics. Banks have number of benefits by introducing ibanking. Economists differentiate among three different types of money. Money is any good that is widely used and accepted in transactions involving the transfer of goods and services from one person to another.
One of the great advantages of online banking is online bill pay. Money is today popularly used in performing almost all economic transactions i. On line or internet banking has many features both for banks and for customers and banks. First and foremost, digital currencies, like bitcoin for example, arent linked directly to the laws, rules or regulations of any government, corporation or bank. But before going towards the types of paper money, lets talk about paper money. Presently we will begin with officially supplied money in the form of currency notes. Money management curriculum has three modules, including. In this article, we will look at the importance and types of e banking services. Before the introduction of the modernized banking system, people used to save their money in hard cash. May 19, 2020 chapter notes money and banking, economics, class 12 edurev notes is made by best teachers of commerce. A the customer loses cash money assets and gains deposits assets, and so the total of his balance sheet stays constant and only his asset composition changes. Advantages of e banking online banking can be faster and more convenient than visiting a bank branch in person or conducting business over the phone.
This money multiplier formula calculates the maximum possible expansion of m1 because it assumes that. Lecture notes for money and banking pdf 8p by matthew chambers file type. It may be in the form of cash and currency or bank credit, bank papers like cheques, deposits, drafts, or in other near money forms such as. So non legal tender money is money which a person may or may not accept as a mean of payment.
Adverse selection and moral hazard university at albany. Unit 3, personal and business finance pearson schools and fe. Hence, it helps to control the inflation in the country. Notes on advantages and disadvantages of insurance grade. This sinking fund is used to make payments to the investors when a company redeems the debt securities or a preferred stock. If a country uses paper money, it need not spend anything on the purchase of gold or minting coins. Paper money is documents representing money, such as bank note, promissory notes, bills of exchange or postal orders.
A sinking is used to pay the liability of a company that will come in future. Ebanking definition of ebanking electronic banking, also known as electronic funds transfer eft, is simply the use of electronic means to transfer funds directly from one account to another, rather than by cheque or cash. Advantages and disadvantages of online banking gobankingrates. Mobile banking does not restrict your business to set timeslocations. By exploring the history of money, this paper describes the transition from former commodity. The money supply is the total amount of assets in circulation which are acceptable in exchange for goods. Money and banking class 12 notes economics mycbseguide. Heres a list of 10 most promising advantages of mobile banking for both banks and their customers. It is economical, since it substitutes a less expensive material than metal for money and conserves the metal for the arts.
Banking financial services management notes, book, ebook. The remainder of the first half of the course note develops the concepts of risk sharing, liquidity, and information to explain how interest rates are determined. Thats only become more true, as banks have added features to online banking sites and mobile apps like digital check deposit. In its absence, the whole prosperous economic life would collapse like a pack of cards. Banks are able to provide services to the customers for 24 hours per day and 7 days per week.
Paper currency has been increasingly issued and circulated in the present century. Aug 26, 2017 a sinking fund is created by the company to revoke the debt. Physical chemistry the benefits of money laundering. Cbse class12 economics revision notes macro economics 06 money and banking class 12 notes economics. What are the advantages and disadvantages of money. As a consequence, with the development of modern banking, cheques. Metallic money or coins is called commodity money while paper currency is known as paper money or fiat money. The advantages of the issue of government paper money are. Another category is bank money which includes the credit that banks offer to depositors. The pdf file containing banking financial services management ebook, book, notes is attached for free. Cash refers to physical currency, like federal reserve notes or treasury coins. A banknote is a negotiable promissory note, which a bank can issue. Advantages and disadvantages of different types of current account.
Inherent advantages of ippb physical presence across 1. Generally term paper money refers to bank notes issued by the central bank of the country. Internet banking is a convenient way to do banking services like fund transfer, bill payment, check account balance, etc. In light of these two perceptions, more and more banks are offering online banking as a viable option for their customers. Barter economy exchange of surplus between parties could be referred to as barter system in simple. Money and the financial systems, interest rates, financial instruments and financial markets. The insurer attempts to gain additional information, such as by requiring a medical exam for life insurance. The facts of your life for each module, you will find. Despite the widespread use and advantages of currency. Money and banking capital controls in developing countries according to the investopedia 20, capital control is seen as any measure that is taken to control the flow of foreign capital into or even out of the domestic economy an these measures are always taken by the central banks or the governments.
An insurance company takes the money from the people in the form of premium, which reduces the volume of money in the market. No two of them are exactly alike, but they all like to advertise certain advantages over the regular billandcoin currency you carry in your pocket. In modern economies people accept either notes and coins or an increase in their current account as payment. Rather than having to write checks or fill out forms to pay bills, once you set up your accounts at your online bank, all it takes is a simple click or even less, as you can usually automate your bill payments. They have released a statement by saying that all the rs. Explain the types of paper money in detail business study notes. B the bankscash reserves in asset side increase by the deposited money, but deposits on. The decision was taken to minimise the black money and corruption. Traditionally, differential information underpins adverse selection.
Chapter notes money and banking, economics, class 12. Lecture notes in money, banking and finance the economics. Have your paycheck deposited directly into your bank or. Money occupies a unique position in a modern capitalist economy. Ebanking services provide customer access to accounts, the ability.
Theory and evidence capital budgeting portfolio theory asset pricing money demand is and lm company valuation central banking institutional investors commercial banking commercial bank risk management introductory. Internet banking security internet banking is a new specific banking area, part of ebanking industry, which allows people to interact with their banking accounts virtually. Paper money means the paper instruments such as bank notes, cheques, bills of exchange and other forms that take the place of money and act as currency or circulating medium. Ebanking is a fully automatic service for traditionally banking customers products based on information technology platforms. No two of them are exactly alike, but they all like to advertise certain advantages over the regular bill and coin currency you carry in your pocket. It can be a shell, a metal coin, or a piece of paper with a historic image on it, but the value that people place on it has nothing to do with the physical. You might have money saved in a bank account or piggy bank which you can then use to buy. If you continue browsing the site, you agree to the use of cookies on this website. This document is highly rated by commerce students and has been viewed 115718 times. Banks and other trusted institutions could issue free tradeable notes, as well as digital forms of. The higher this cash ratio the less money the bank can relend or create. Clearly, online banking has both advantages and disadvantages. Electronic banking has many names like e banking, virtual banking, online banking, or internet banking.
It enables the consumers to be transactionready much as cable access has facilitated online pc access and reduced consumer dialup delays. The loss which a country suffers from the wear and tear of metallic money is also avoided. Financial inclusion pmjdy india post payments bank pmf ias. In modern economies people accept either notes and coins. A sinking fund is created by the company to revoke the debt. Explain the history of privately issued bank notes. The advantages or uses of money can be best understood by considering the. Money, banking, international trade and public finance d. For others it may be a little more complex and downright intimidating. Wealth management, generally, centers on investments, portfolio management and other specialty areas. Com, bba and mba students slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Lecture notes for money and banking pdf 8p download book. Ebanking, functions, advantages, limitations, traditional banking services.
A sinking is used to redeem burden of a company, to replace fixed assets, a redemption of stock etc. Unit v high tech ebanking payment system in india paper based, epayments electronic banking advantages plastic money, emoney forecasting of cash demand at atms security threats in ebanking and rbis initiatives. What are the advantages of free banking in comparison to the current system. It has several advantages over money in the form of gold or silver. Jan 17, 2012 paper money means the paper instruments such as bank notes, cheques, bills of exchange and other forms that take the place of money and act as currency or circulating medium. Some advantages of online banking go handinhand with simply being online. E banking is a fully automatic service for traditionally banking customers products based on information technology platforms. Bill of exchange and cheque are also considered as paper money.