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Cheque - Kinds of Cheque and Why cheques dishonor

CHEQUES INTRODUCTION : It is a credit instrument, which is used to withdraw the deposited money from the bank, whenever account holder wants to withdraw his deposited money from the bank; he issues a cheque on the bank. It is an order given by the account holder to the bank and bank is responsible to pay on the demand. DEFINITION : “It is an order given by the account holder to the bank to withdraw (deposited) money from the bank”. SPECIMEN OF CHEQUE Muslim Commercial Bank Ltd. Dated  _________  Gulshen-e-Iqbal Branch Karachi. Cheque No.54476 Pay ______________________________________ or Bearer Rupees ____________________________________ Rs.                                                                                Signature__________ ESSENTIALS OF CHEQUES Cheque must fulfill the following conditions otherwise its status as credit instrument will not be accepted and it will be declared as dishonored cheque. • SIGNATURE : Cheque must be signed by the account holder. The bank p

Credit Instruments And Kinds of Credit Instruments

DEFINITION : Credit instruments are those devices which are used in business for credit transactions. KINDS OF CREDIT INSTRUMENTS NEGOTIABLE CREDIT INSTRUMENTS : Willis defines negotiable instruments as, “it is the one the property in which is acquired by every person who takes it bona fide and for value, not with standing any defect of title in the person from whom he took it”. In Pakistan Negotiable Instruments Act, 1881 is enforced. NON NEGOTIABLE CREDIT INSTRUMENTS: An Instrument carrying “not negotiable” is only transferred as ordinary chattels. FORMS OF CREDIT INSTRUMENTS • CHEQUE It is a credit instrument, which is used to withdraw the deposited money from the bank, Whenever account holder want to withdraw his deposited money from the bank , he issues a cheque on the bank. It is an order given by the account holder to the bank. “Cheque is a credit instrument that is used to withdraw (deposited) money from the bank”. • BILL OF EXCHANGE A bill of exchange is a credit instrumen

Bank Fund - Sources and Uses of Funds

INTRODUCTION TO BANK FUNDS: All the money which are in the custody of a bank is called bank fund, Bank funds chiefly consists in public deposited which must be returned to the depositors later. It is shown as a liability in the balance sheet of the bank. The bank is the custodian of the public money and must use it safely and productivity. PRINCIPLES TO UTILIZE BANK FUND Whenever banks employs or utilizes its funds follow some rules and principles. Experts of banking have given the following rules for utilizing the funds. 1. SECURITY : The basic principle which bank considers before utilizing its funds is security because bank provides loan to its customers out of the deposits of the account holders. Therefore bank first assured that loan is going in the safe hands. The bank, before giving approval of loans must consider following points • Required loans is in proportion of the borrower`s own capital invested • The financial position of the borrower is satisfactory. • Chara

What Is Credit Creation~ How Credit is created And Limitations

CREDIT CREATION WHAT IS CREDIT: Credit money is the amount agreed upon to pay later. It is issued by Commercial banks and takes in the form of cheques. Credit expansion takes place by means of using cheques. HOW CREDIT IS CREATED Assumptions • Reserved Ratio is 10% • One Commercial Bank in area (M.C.B) • Initial deposit Rs.1000 Suppose Mr. Ahmed deposits Rs.1000 in bank, 10% of which that become Rs 100 bank sent to central bank as cash reserve. Now bank has only Rs 900 to be used for advancing loans. Now Mr. Babar borrows this Rs.900 and makes payment to Mr. Khalid, now Mr. Khalid receives the cash Rs.900 and deposit in its account with the same bank. (Because area has only one commercial bank) Now M.C.B bank receives that cash of Rs. 900. At this stage the bank has net deposit of Rs.1900 (1000 + 900) while the original deposit is Rs.1000 Maximum expansion of credit = original deposit x 1_______ Reserve ratio Maximum expansion of credit = 1000 x 1 / .10 = 10,000 LIMITATION OF CREATION

Definition, Kinds And Functions of commercial bank

INTRODUCTION TO COMMERCIAL BANK: Commercial banks generally provide credit to the businessman to promote trade and business. It receives deposit and provides loan service to the public against interest. Their important functions are payment against cheques, issuance of letter of credit, discounting bills of exchange, transferring of money. They play an important role in the creation of credit money. Habib bank, Muslim Commercial bank and U.B.L are the leading commercial bank in Pakistan. RECOGNIZED DEFINITIONS OF BANK According to the Hilton Commission “Bank refers to individual firm or company, who receives deposits in the form of money and pays it back through cheque draft or order and uses the Word “Bank” for its identity”. According to Dr. Herbert Hart “Banker refers to the person who, with reference to his business functions, receives and pays it through cheque to for whom or from his accounts the money was received” According to Prof. Kinley “Bank is an organized house which b

What are the different kinds of bank accounts?

What are the different kinds of bank accounts? KINDS OF BANK ACCOUNTS A bank provides the facility to open the different kinds of deposit accounts considering the need of all groups in the society. There are four kinds of bank accounts generally used in the modern banking system which discussed below in detailed 1. CURRENT ACCOUNT OR DEMAND DEPOSITS The Current accounts are generally opened for settling business transactions, which basic characteristics are as follows. FREE FROM WITHDRAWAL UPPER & TIME LIMITATIONS : The amount deposited in the account are payable on demand that is why it is also called as demand deposits. There is no upper and time limit of the withdrawal. THE HIGHEST AMOUNT FOR OPENING AN ACCOUNT: The amount for opening a current account is higher than other accounts. INTEREST-FREE OR NOMINAL INTEREST : The bank generally does not pay interests on current accounts but nowadays a very nominal amount of interest is given. CREDIT FACILITY: The banks also give

7 Steps To Open Bank Account

How to Open Bank Account? 7 Steps To Open Bank Account PROCEDURE TO OPEN BANK ACCOUNT There are several steps are required to open a bank account but the procedure of opening an account is quite simple and easy as discussed below. SELECT A TYPE OF BANK ACCOUNT: When a client wants to open a bank account, first he selects the type of bank account according to his preference because in modern age a commercial bank provides the facility to open the different kinds of bank account, considering the need of all groups in the society. Savings account serves the purpose of saving; current account is used for settling business transactions. APPLICATION & ENCLOSURES PROCESS: The bank manager will provide the client an application form for getting such information as: name, father name, address, profession, amount to be deposited, introducer`s date, date & signature, etc. Along with the application form, a photocopy of the identity card of the account holder must be attached. For iden

What is the role of banking in an economy?

Why are banks so important? What is the role of banking in an economy? IMPORTANCE OF BANKING Banks plays a significant role in economic development. The overall economy of a country is absolutely dependent on the efficient banking system. Industrial, agriculture and commercial progress of a country is not possible without an effective banking system the importance of banking may be stated as follows. CAPITAL FORMATION : Capital is life blood for all kinds of businesses and economic development of a country. Capital grows out from saving and Banks plays a prime role in accumulating capital by collecting small savings of the people. Thus bank renders a valuable service towards the development of a country by encouraging the growth of capital. DEVELOPMENT OF TRADE AND INDUSTRY: Bank utilizes their collected funds by advancing loans to commercial and industrial sectors that enhance to the trade and industries, level of production and creating new jobs in the economy. PROMOTING FOREI

Write kinds of banks by functions or by ownership?

Write kinds of banks by functions or by ownership? KINDS OF BANKS (BY FUNCTIONS) Different banks on the basis of the different function can be renowned with the different names. In other words, the bank can also be classified on their functional ground which detailed given below. CENTRAL BANKS : Every country must have its Central bank which is responsible for the financial and economic stability of a country, controller of credit, custodian of foreign exchange, etc. It has monopoly over issuance of currency notes, regulates and formulates policies for the scheduled banks in a country. It offers services to the state and banking industry only. “STATE BANK OF PAKISTAN” doing the job as Central bank of Pakistan COMMERCIAL BANKS : Commercial banks generally provide credit to the businessman to promote trade and business. It receives the deposit and provides loan service to the public against interest. Their important functions are payment against cheques, issuance of letter of credi

Bank Definition And Introduction To Banking

INTRODUCTION TO BANKING: Word Bank is used in a Comprehensive manner for those financial institutions and Organization which deal in money and honor the cheques issued upon, they receive deposits and advancing loans. These deposits and loans base on interest. Remember that loan interest rate always higher than the deposit interest rate. That difference is the bank profit. In the modern world, banks become so necessary that if it is excluded from the economic system the whole business economics world collapse. RECOGNIZED DEFINITIONS OF BANK According to the Hilton Commission “Bank refers to an individual firm or company, who receives deposits in the form of money and pays it back through cheque draft or order and uses the Word “Bank” for its identity”. According to Dr. Herbert Hart “Banker refers to the person who, with reference to his business functions, receives and pays it through cheque to for whom or from his accounts the money was received” According to Prof. Kinley “Bank is an

Where did the banking system originated?

write origin of modern banking system? write the history of modern banking system? Where did the banking system originated? ORIGIN OR HISTORY OF MODERN BANKING SYSTEM In the opinion of some writers the word bank has been extracted from the Italian terms BANCUS or BANQUE which means BANCH. Modern Banking system originated and spread over the whole civilized world from Italy and England where people deposit their savings to the persons having the qualities of solvency, Honesty, and Safety. These trustees charged fee from depositors to earn livelihood. This practice turned into a widely accepted business and innovator trustees lend the deposited money and earned income from two ends, from depositors and from borrowers. In banking development the services of three groups cannot be ignored: THE GOLDSMITHS : In ancient time some persons having the qualities of solvency, Honesty, Safety. Therefore people were trusted on them to keep money as deposits. The depositors would be given slips as

Comment.Farming is not practiced in Polar regions

Comment. Farming is not practiced in Polar regions. 2012(P) The most influencing factor on farming is the climate. The climate is the combination of temperature and rainfall. Farming cannot be done at a very high temperature. Similarly, very low temperature also makes farming impossible. In the polar region of the world, the temperature remains very low throughout the year. When the temperature becomes moderate in this region then some lower

Construction and maintenance of roads and railways

The construction and maintenance of roads and railways in the desert areas and equatorial regions is difficult. Discuss? 2011(P) The deserts and equatorial regions are such regions of the world where the physical environment is very harsh for the human population. The vast deserts extending from the Sahara in Africa. The equatorial region supports a small population, which practices shifting, or subsistence agriculture or animal rearing. Due to less population and unorganized agriculture, the construction of roads and railways and their maintenance is difficult.

Explain the role of transport network in the development of mining in any area.

Explain the role of transport network in the development of mining in any area. 2011(R) Mining is included in primary commercial activities. It is a process of obtaining minerals from the earth. After the primitive Stone Age, copper age began as man discovered copper from mines and learnt its utility. The actual exploration of hidden minerals of the earth started with the industrial revolution, with the passage of time, mineral extraction has become commercial. Railways, Airways, waterways, and roads are included in transport network.  transport network can play a role in the development of mining in the world. Transport network provides help to transfer the minerals obtaining from mining easily from one place to another in time. The construction of better roads and the development of railway can play a role in the development of mining in the world.

Rubber is a plant of equatorial Region. Comment

Rubber is a plant of equatorial Region. Comment. 2011(R) Rubber is the production of equatorial region. Rubber plaint was originally found in the Amazon forests of Brazil in South America. Later on, these trees are cultivated in the rubber plantation of Indonesia. These trees produce 90 percent of all-natural rubber consumed. The actual homeland of rubber is Latin America and the region of South East Asia. This is called Equatorial region which provides rubber to all over the world. The name of a rubber tree is Hevea brasiliensis

Renewable Natural Resources and Non-Renewable Natural Resources

Explain the terms Renewable Natural Resources and Non-Renewable Natural Resources? 2011(R) The natural resources which are produced in every season and are obtained repeatedly and are also used repeatedly are called Renewable Natural Resources. They are continuously available therefore called renewable. For example, wood, food, water and construction materials are called renewable natural resources. The natural resources which are used in a different situation when once discovered and used, then their quantity decreases and ultimately they exhaust and become Non-Renewable Natural Resources. They include minerals both metallic and non-metallic and fossil fuels like coal, petroleum and natural gas

What is meant by E-Commerce? How does it operate?

What is meant by E-Commerce? How does it operate? Electronic commerce, commonly known as e-commerce, e-commerce or e-commerce, refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, the term may refer to more than just buying and selling products online. It also includes the entire online process of developing, marketing, selling, delivering, servicing and paying for products and services. The amount of trade conducted electronically has grown extraordinarily with widespread Internet usage. The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction's life-cycle, althou

Write down the importance of information technology.

Write down the importance of information technology. • Access to variety of learning resources. • Immediacy to information. • Anytime learning. • Anywhere learning. • Collaborative learning. • Multimedia approach to education. • Authentic and up to date information. • Access to online libraries. • Teaching of different subjects made interesting. • Educational data storage. • Distance education. • Access to the source of information. • Multiple communication channels-e-mail, chat, forum, blogs, etc. • Access to open courseware. • Better accesses to children with disabilities. • Reduces time on many routine tasks.

Explain the importance of electronic media in the world

Qno.1 Explain the importance of electronic media in the world.2011(R) & 2010(R&P) Electronic media is extremely important, as it is very widespread and easily accessible. It is highly influential, especially to adolescents and young adults who seriously value technology. Electronic media: Media that uses electronics to reach audience. Telegraph, Satellite, Television, Internet, web- downloads, live streaming videos, Radio, Digital media marketing. Electronic Media is important because it allows the people who utilize it to transmit information to a larger audience. In this fast-growing world, we try to go along with the world, following the same style of life. Now-a-days people are busy in their jobs, they find less time to read and thus print media's popularity is decreasing.

Write down the uses of Mineral oil in the World

Discuss the economic importance of the mineral oil. Mineral oil is light and best liquid oil for producing energy. Mineral oil is the most important source of lubricants and fuel. In addition to the petrol, other ingredients are also achieved from mineral oil which is used in the industries. Industrial development of the advanced countries of the world depends on the importance of mineral oil without which the developed nations cannot be survived. Mineral oil generates three times greater energy than the coal. Mineral oil could not be only stored easily but be also transferred from one to another Write down the uses of Mineral oil in the World? The mineral oil when extracted from the Earth, it has a shape of some black liquid, known as Crude Oil. Then it is bought into the refineries, where after passing so many processes it adopts the following shapes such as : 1. Gasoline 2. Petrol 3. Diesel 4. Kerosene 5. Furness oil 6. Road oil’ 7. Wax of candles

What do you know about Uranium?

What do you know about Uranium? URANIUM Uranium is a very heavy metal which can be used as an abundant source of concentrated energy. Uranium occurs in most rocks in concentrations of 2 to 4 parts per million and is as common in the Earth's crust as tin, tungsten and molybdenum. Uranium occurs in seawater, and can be recovered from the oceans. Uranium was discovered in 1789 by Martin Klaproth, a German chemist. Uranium has a melting point is 1132°C. The chemical symbol for uranium is U Q: Why are accurate details about Uranium not available?  Answer : Reserves of Uranium are spread in all over the world at different places. It is such type of metal which helps in atomic energy that is the reason of keeping the reserves of Uranium secret by many countries. That is why it is very difficult to calculate the total reserves of Uranium in the world. Around 40 countries are showing their Uranium reserves. Following countries are very important among them: Algeria, Argentina, Australia

Write down Gold Production in the world?

Write down world's Gold Production? WORLD’S GOLD PRODUCTION II. Major gold producing countries. (2011-2012) CHINA Gold mining in the People's Republic of China has recently made that country the world's largest gold producer. For the year 2007, gold output rose 12% from 2006 to 276 tones to become the world's largest for the first time -- overtaking South Africa, which produced 272 tones. For the third consecutive year, China is the world's largest producer of gold. It beat its previous record. Chinese gold production rose from 285 to 300 tons of gold from 2008 to 2009. AUSTRALIA Australia is the second largest gold producer in the world with 215 tones. Production is down 2.3% compared to 2008. Australia moves from fourth to second as its production declined more slowly than that of South Africa and USA. SOUTH AFRICA AND UNITES STATES OF AMERICA South Africa has lost its place of No. 1 gold production in 2007. It is now the third largest in the world with the US

Write a note on the precious mineral “GOLD”

Write a note on the precious mineral “GOLD” GOLD (PRECIOUS MINERAL) Gold ranks an important position among all the precious minerals. The use of Gold is common in the world from olden days. Today it is used for making coins and ornaments. Gold reserves are the common measure of a country’s economy. Gold is heavier than so many minerals, but in spite of that it is very soft and can be converted into thin sheet. Gold occurs in veins or reefs of quartz. Mostly it is found in Igneous and Metamorphic rocks, but some gold is also found in the sands of some rivers.

TYPES OF IRON

PIG IRON: The first process of iron ore smelting gives, it is the shape of pig iron, and few impurities are removed. CAST IRON: After, the 2nd process by mixing of sulfur, phosphors, and lime stone it changes its shape as cast iron. WROUGHT IRON: To make the cast iron more pure, limestone and manganese is used in the third process, and it is converted into the bars, known as Wrought Iron. STAINLESS STEEL: It is known as best quality of iron. To make wrought iron more pure strong and bright during the fourth process, the chromium, nickel and tungsten, are used, and converted into stainless steel.   

Explain various types of Iron ore found in the world?

Explain various types of Iron ore found in the world? Following are the various types of Iron Ore found in the World. LIMONITE: The first kind of iron ore is known as Limonite. It contains 50% iron. It is available in gray and yellowish colours. This iron ore is found in Germany and France. HEMATITE: This is the second best kind of iron ore. It is available in reddish colour and contains 60 to 70% iron. It is achieved in the solid form. This ore is common in U.S.A, India and Russia. MAGNETITE: The best quality of iron ore is known as Magnetite. It contains the highest percentage of iron i.e. 72% approximately. Because of this higher iron quantity its colour is black. It is commonly found in Igneous and Metamorphic rock’s area. SIDERITE: It is ranked as the lowest quality of iron ore. It contains 30% to 40% of iron content. This ore has various varieties and colors ranging from ash gray to brown.

What do you mean by OPEC

What do you mean by OPEC? Write down the names of the members of OPEC. The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization. These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and Angola (2007). Currently, the organization has a total of 12 members’ countries. They are Algeria, Angola, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela.

Discuss the importance of Mineral Oil?

Discuss the importance of Mineral Oil? Mineral oil is light and best liquid oil for producing energy. Mineral oil is the most important source of lubricants and fuel. In addition to the petrol, other ingredients are also achieved from mineral oil which is used in the industries. Industrial development of the advanced countries of the world depends on the importance of mineral oil without which the developed nations cannot be survived. Mineral oil generates three times greater energy than the coal. Mineral oil could not be only stored easily but be also transferred from one to another.