2004 was characterized by global uncertainty arising from both political & economic turbulence in different parts of the world. Their operating profit was Tk. 852 million‚ 35% higher than that of the year 2003. Banks deposit shot up by 34% to Tk. 22‚575 million excluding call deposits & loans & advances rose by 28% & stood at Tk. 16‚539 million as on December 31‚ 2004. By the end of 2004‚ most of the branches & Head Office had been migrated to the sophisticated system of Flex cube from the old transactional
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practice been taken to convey the same meaning. Banking has two important functions to perform‚ one of accepting deposits and other of lending monies and/or investment of funds. It follows from the above that the rates of interest allowed on deposits and charged on advances must be known and reasonable. The money-lender advances money out of his own private wealth hardly accepts deposits and usually charges high rates of interest. More often‚ the rates of interest relate to the needs of the borrower
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Barter-direct exchange of goods and services without the use of money Liquidity- the degree to which and object can be acquired or disposed of without much danger of any intervening loss in nominal value and with small transaction costs Transaction deposits- checkable and debitable account balances in commercial banks and other types of financial institutions such as credit unions and savings banks. Any accounts in financial institutions from which you can easily transmit debit-card and check payments
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WORKING CAPITAL MANAGEMENT OF Bank of Kathmandu Limited A THESIS Submitted By: Tulasi Ram Mainali Nepal Commerce Campus T.U. Regd. No. 7-1-25-575-96 Campus Roll No. 498/059 Exam Roll No.1251/061 Submitted To: Office of The Dean Faculty of Management Tribhuvan University In partial fulfillment of the requirements for the Master ’s Degree In Business Studies (MBS) New Baneshwor‚ Kathmandu April‚ 2009VIVA -VOCE SHEET We have conducted the viva –voce examination of the thesis
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Dynamics Issues When we talk about supply in terms of the banking sector‚ we talk about supply of funds that the bank can loan. This supply of loanable funds come mainly from the customers themselves in the form of deposits. The demand section of this report discusses in-depth about the deposits from the market. This section is used to address the macro-economic aspects of the supply of funds including the money supply of the country‚ major contributors in the supply dynamics‚ the constraints of monetary
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Question and answers for homework-1 1. What is the difference between a financial asset and a tangible asset? A tangible asset is one whose value depends upon certain physical properties‚ e.g. land‚ capital equipment and machines. A financial asset‚ which is an intangible asset‚ represents a legal claim to some future benefits or cash flows. The value of a financial asset is not related to the physical form in which the claim is recorded. 2. What is the difference between the claim
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question. Assets Liabilities Reserves $20‚000 Deposits _________ Loans _______ Table 25-1: Balance Sheet ____ 1. Use Table 25-1. If the reserve ratio is 25%‚ loans are: A. $5‚000. B. $15‚000. C. $60‚000. D. $80‚000. E. $20‚000. ____ 2. Banks are illiquid because: A. their deposits are less liquid than their loans. B. their loans are less liquid than their deposits. C. their assets are greater than their liabilities. D. their
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University as well. You anticipate the annual tuition to be $60‚000 per year for the four years of college. You plan on making equal deposits on your child’s birthday every year starting today‚ the day of your child’s birth. No deposits will be made after starting college. The first tuition payment is due in exactly 18 years from today (the day your child turns 18 – no deposit required‚ i.e. last
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for goods and services or in the repayment of debts. Objects that qualify as money under this definition: Currency (dollar bills and coins). Checking account deposits. Perhaps even savings deposits. 1 This concept of money must be distinguished from two other terms: Wealth = value of all property or assets‚ including currency and bank deposits‚ but also including stocks‚ real estate‚ etc. Income = flow of earnings per unit of time. 2 Functions of Money Medium of Exchange Unit of Account Store
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manufacturers of money". The process of credit creation occurs when banks accepts deposits and provide loans and advances. When the customers deposit money with the bank‚ they are called primary deposits. This money will not be withdrawn immediately by them. Hence banks keeps a certain amount of deposits as reserves which is known as cash reserve ratio and provide the balance amount as loans and advances. Thus‚ every deposit creates a loan. Commercial banks give loans and advances against some security
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