There are different types of bank as well as different opinions about the derivation Bank”. Before discussing the types of bank, let’s see what is bank and from where the word bank had derived. Some authors say that bank is derived from the word ‘Banco” which means bench. According to another opinion the work bank is derived from the German word “back” which means joint stock fund and after some time the word back became “’Bank”.
Banking & Finance
Banking & finance both combine the study of modern banking and finance for business. Banking and Finance is a basic business subjects in which probably acquiring the matters of finance are discussed. Probably business acquired the business finance from the different banks and the study of such financing for business is known as banking & finance in business education. Today in banking & finance there is a enough scope and every year a lot jobs opened for youth.
There are number of instruments of monetary policy, which are important for business to understand, but, here it is also important to know what Monetary Policy is? Credit performs the important functions. Being the major part of the total supply of money in a modern economy, the value of money is influenced by the volume of credit. The volume of credit in the country is regulated for the economic stability. This regulation of credit by the central bank is known as “Monetary Policy”. It is also called Credit Control.
There are different types of paper money, which uses commonly now days in all over the world. But before going towards the types of paper money, lets talk about paper money. What is paper money? Generally term “paper money” refers to bank notes issued by the central bank of the country. Bill of exchange and cheque are also considered as paper money. Paper Money is generally accepted in daily transactions as a medium of exchange.
There are number of functions of money that can be seen easily in the business world. But before discussing the functions of money, lets define the money. Money has been defined by different authors in different ways, which is discussed as under:-
The need for money is quite clear to everyone as it has the capacity to fulfill the different needs of people. So the importance of money in the organizations is quite important as it is used as a motivational tool for triggering the Performance of the Employees. Moreover, besides basic needs, there are many diversified needs that can be satisfied through money. The importance of money is to prove and increase the personal identity of people along with the self perceptions. No doubt, today money has great importance in human’s life and in business it is just like a blood running in our bodies.