ASSIGNMENT Recent developments in Commercial Bill Market NOVEMBER 30‚ 2009 University School of Management Studies Guru Gobind Singh Indraprastha University Delhi Submitted By: SACHIN GOEL (68) MANAV MUDGAL (69) GH Batch MBA (IIIrd SEMESTER) Commercial bill A non-bank bill of exchange (loan) generated by merchant or investment banks and companies. The bill is evidence of the borrower’s debt and commitment to repay at the due date. These bills are covered by the Bills of Exchange
Premium Bank Promissory note
Question: Differentiate between the collection function and recovery function of a financial institution. The collection function collects payments from accounts which are delinquent‚ that is those who make payments later than their contractual due date. This is happened when the loan not yet turns bad; the problem is not so serious. The recovery function collects money still owed on accounts after the financial institution has classified the account as non-performing or has written off the account
Premium Debt Loan Mortgage loan
4. A customer has approached a commercial bank seeking to invest funds for a period of six months. The customer is considering lodging the funds in a term deposit or‚ alternatively‚ purchasing a negotiable certificate of deposit. (a) Explain each of these investment products to the customer. Term Deposits are funds lodged in an account for a predetermined period and at a specified fixed interest rate. A Certificate of Deposit (CD) is a short-term discount security issued by a bank; face value repayable
Premium Debt Bank Finance
inflows. All businesses aim to have a positive cash balance‚ which takes place when inflows are greater than outflows. To avoid problems occurring in the business‚ they can temporarily reduce their expenses for some months or they can arrange overdraft from banks for a short time. They can also chase up any outstanding debts that are owed by customers. The business should always check their cash flows; see if there are any problems occurring and if there is they need to make a quick and appropriate
Premium Cash Receipt Cash flow
to 60% of net income‚ which is too high in this circumstance because the firm has large debts but still pay much dividends. Excess Cash: was determined by the difference between assets and liabilities‚ therefore‚ the balance sheet is balance. Overdrafts: is strongly linked to excess cash and was the different between assets and liabilities. It is a part of
Premium Expense Generally Accepted Accounting Principles Operating expense
The term bank comes from the French word “Banco” which means a bench. A bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lend it to others. Functions of Commercial Bank Primary Function: The primary functions of bank are also knowns as banking functions . They are the main functions of a bank. Accepting Deposits SAVING DEPOSITS An persone can open an saving account
Free Cheque Bank Money
CHAPTER I INTRODUCTION 1.1 Background of the study The term bank is derived from Latin word ‘Bancus’‚ Italian word ‘Banca’‚ French word ‘Banque’ and German word ‘bank’ which means join stock company. (Neupane‚ 2065) Money lenders in the streets of major cities of Europe used benches for the acceptance & payment of valuables & coin. The merchants‚ goldsmith & money lenders are said to be the ancestors of modern banking. The history of modern banks begins from Bank of Venice (Italy) established
Premium Credit Debt Interest
Introduction Often the hardest part of starting a business is raising the money to get going. The entrepreneur might have a great idea and clear idea of how to turn it into a successful business. However‚ if sufficient finance can’t be raised‚ it is unlikely that the business will get off the ground. Importance of Finance Finance is very important for business organisation . Finance includes planning of financial resources‚ making of optimum capital structure and effective utilization of financial
Premium Finance Economics Corporate finance
What is bank? Finance is the life blood of trade‚ commerce and industry. Now -a-days‚ banking sector acts as the backbone of modern business. The term bank is derived from the French word Banco which means a Bench or Money exchange table. In olden days‚ European money lenders or money changers used to display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging. A bank is a financial institution which deals with deposits
Premium Debit card
reliance on trade payables as a source of funds for working capital needs. * Extended trade payables periods‚ sometime the company takes involuntary trade payables period. * Lack of cash in hand or at bank‚ hence excessive reliance on bank overdraft as a major source of finance for working capital activities. * Increasing working capital cycle. *
Premium Finance Financial ratios Corporate finance