14Oct 2018 by Reese Bannister

Essay on International Currency Wars

Management
It was September 27, 2010, when the Brazilian finance minister stated that an “international currency war” has erupted. Three separate but related battles are going on – first, there is the old and serious problem of a more or less inflexible pegging of the Chinese Yuan to the US dollar contributing to the massive Chinese current account surpluses and huge international reserve holdings and correspondingly large and unsustainable deficits elsewhere.Second is the exceptionally loose monetary policy being followed (after the 2008-09 global crisis) by major industrial countries, including the USA, the UK, Japan and, to some extent, the Euro zone. Policy rates in these jurisdictions are at or close to zero and money supply is being boosted through “quantitative easing” (QE), whereby the central banks pump up liquidity by purchasing…
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14Oct 2018 by Reese Bannister

4 Different Types of Financial Crises (Banking, Speculative Bubbles, International, Wider Economic Crisis)

Currency
1. Banking crisis: When a bank suffers a sudden rush of withdrawals by depositors, this is called a bank run. Since banks lend out most of the cash they receive in deposits, it is difficult for them to quickly pay back all deposits if these are suddenly demanded, so a run may leave the bank in bankruptcy, causing many depositors to lose their savings unless they are covered by deposit insurance.A situation in which bank runs are widespread is called a systemic banking crisis or just a banking panic. A situation without widespread bank runs, but in which banks are reluctant to lend, because they worry that they have insufficient funds available, is often called a credit crunch. In this way, the banks become an accelerator of a financial crisis.Examples…
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14Oct 2018 by Reese Bannister

Essay on the Brief History of International Monetary System

Management
History of international monetary system is lengthy and complex. Here we shall describe only important features in chronological terms:i. Pre-First World War Gold Standard: A Fixed Exchange System. Under the gold standard, countries used gold standard as a medium of exchange and a store of value. ADVERTISEMENTS: During this era the exchange rate was stable. Prior to World War I, a country’s monetary unit was defined in terms of certain weight of gold. Image Source: fouman.comDuring this era London, a financial centre for 90 percent of world trade, dominated the international finance. Sterling was the sole reserve currency, as it was convertible into gold at the Bank of England. Interestingly the Bank of England had only two to three percent of gold backing to the actual money supply.ii. The two…
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14Oct 2018 by Reese Bannister

Conditions recognised by the Dharmasastras as Necessary for a Valid Hindu Marriage

Marriage
The conditions necessary for a valid Hindu Marriage are stated by Yajnavalkya in the chapter dealing with Marriage. The commen­tators have treated some of the conditions mentioned in this text as mandatory and some as recommendatory.The following conditions prescribed by this text are regarded as mandatory: — (1) the bride should not be a Sapinda of the bridegroom (2) she should be separated by seven degrees on the father’s side and five degrees on the mother’s side (3) she should not have the same gotra or Pravara as the bridegroom. (4) She should not have been married to another earlier.The other conditions are treated as recommendatory only. They are (1) She should be good looking (2) She should be younger in years (shorter in stature). (3) She should be healthy…
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14Oct 2018 by Reese Bannister

Essay on the Position of a Karta in Hindu Joint Family

Accounting
The joint family is a patriarchal organisation. The senior most male ascendant is the head of the family and is called the Karta or Manager. The Manager represents the family and acts on its behalf. In a family consisting of the father and his children, the father is the manager.When he dies his eldest son becomes the manager. Thus in a joint family consisting of brothers the eldest brother is the Manager. It is open to the senior member to give up his right of Management. Then one junior to him can become the Manager.A woman cannot be a coparcener and so cannot be the Manager of the Family. Radhe Ammal v. Income-Tax Commissioner, AIR 1950 Mad 538. A minor may be the Manager but he has to act through…
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14Oct 2018 by Reese Bannister

What are the Effects of Conversion from One Religion to Another under Hindu Law?

Marriage
The effects of conversion from one religion to another under Hindu Law are described below: (A) Law Applicable: The effect of conversion from one religion to another on the law applicable to the convert was considered by the Privy Council in Abraham v. Abraham, 1863 (9) MIA 195. M. Abraham’s ancestors wereHindus who were converted into Christianity. On the death of M. Abraham his widow brought the suit for recovery of his property. This suit was resisted by his brother F. Abraham who contended that his ancestors continued to be governed by the Hindu Law in spite of conversion. He accordingly claimed that he was entitled to the entire property according to the Hindu Law of survivorship applicable to a joint Hindu family. Image Source: duichargeatlanta.com ADVERTISEMENTS: The Privy Council…
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14Oct 2018 by Reese Bannister

What is the Rule of ‘Return’ (Radd) under the Muslim Law of Inheritance?

Law
If, on assigning their shares to the sharers, it is found that the total of the shares does not exhaust the whole, the residue will go to the residuaries.But if there are no residuaries, the residue will not go to distant kindred, but would be distributed among the sharers in proportion to their shares. This right of reverter is called radd (“return”). Image Source: opsis.georgetown.edu Sunni Law: ADVERTISEMENTS: The residuaries take the surplus between them, after the shares are satisfied. But instances may occur where there is surplus left, but there are no residuaries to take it. Thus, suppose A dies leaving behind his mother and a son’s daughter (both sharers), and no residuaries. Their shares respectively are 1/6 and 1/2.This together makes 2/3 of, 4’s property, leaving 1/3 of…
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14Oct 2018 by Reese Bannister

Useful Notes on Testamentary Succession (wills) under Muslim Law in India

Marriage
The following topics are discussed below:1. Revocation of Muslim wills2. Lapsing of legacies ADVERTISEMENTS: 3. Abatement of legacies4. Devolution of inheritance5. Position of an executor of a Muslim will6. Probate of a Muslim will, when necessary ADVERTISEMENTS: 7. Alienation by an heir of his share before payment of debts8. Validity of alienation of the whole property for payment of debts9. Decree against an heir, if binding on other heirs10. Difference between Shia and Sunni law of wills. Image Source: growingfaithathome.files.wordpress.com ADVERTISEMENTS: 1. Revocation of Muslim Wills: A will is, by its very nature, revocable. A testator may, therefore, at any time, revoke his will expressly or tacitly. Thus, when the testator destroys the subject-matter of his bequest, or completely alters its nature, or transfers it to another person, revocation may…
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14Oct 2018 by Reese Bannister

What are the General Principles of Inheritance under Muslim Law in India?

Construction
The following sub-topics are considered here:1. Which law prevails?2. What property is heritable? ADVERTISEMENTS: 3. Joint family system not recognised4. No rule of primogeniture5. Right of heir presumptive, a mere spec successionis6. Vested inheritance ADVERTISEMENTS: 7. No ‘principle of representation’ in Sunni law8. Suit by creditor against heirs9. Life estate and vested remainder. Image Source: pre04.deviantart.net 1. Which Law Prevails? ADVERTISEMENTS: The property of a deceased Muslim is to be distributed according to the law of the school to which he belonged at the time of his death. The law of the school to which the heirs belong is immaterial. 2. What Property is Heritable? The estate that remains after the payment of the charges, viz., funeral expenses, debts and legacies, out of the property of the deceased, is heritable…
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14Oct 2018 by Reese Bannister

What are the Powers and Duties of a Mutawalli under Muslim Law in India?

Art
A Mutawalli cannot, without the permission of the Court, alienate wakf property. He cannot grant a lease of the wakf land for more than three years (or one year, if the land is non-agricultural). He is entitled to the remuneration fixed by the wakf. He cannot transfer his office, even on his death-bed. His office is not hereditary. Image Source: mutawalliazam-ajmer.comAs a general rule, wakf property is inalienable. Unless expressly authorised so to do by the terms of the deed of wakf, a Mutawalli has no power, without the sanction of the Court, ADVERTISEMENTS: (1) To sell, mortgage or exchange wakf property; or(2) To grant a lease (i) for more than three years, where the wakf property is agricultural, and (ii) for more than one year, where the wakf property…
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