Category: Currency

Essay on Relationship Between Sociology and Other Social Sciences – Social Sciences deal with the social universe or phenomena in general.They deal with forms and contents of man’s interaction. They study human groups, society and social environment. The social phenomena which they study are as natural as the phenomena of magnetism, gravitation and electricity, and a modern city is as natural as an ocean.Different social sciences deal with the different aspects of the social life of man. Accordingly, History, Anthropology, Social Psychology, Economics, Political Science, etc. study the various fac­ets of the same reality, i.e. the social milieu. Naturally, these social sciences are then very much interrelated. Image Source: wesley.school.nz ADVERTISEMENTS: Sociology, as social science, has joined the family of social sciences very recently. It was born at a time…

I was an expert thief-catcher when I actually caught one last night. It so happened last night that I went to bed a little earlier and got good sleep. At about midnight, I heard some subdued sounds in my adjoining room. It was my father’s room. My father had gone on a one week tour.I looked through the crevice in the door. The beams of moon light were entering the room. So, the inside of the room was partially visible. I was at first horrified to see a thief. He was gathering currency notes from the almirah of my father, the lock of which he had broken open. My mother was sleeping in my room. I woke her up noiselessly and told her about the thief in a hushed voice.I…

This approach holds that irrespective of what happens to demand and supply of a currency in the foreign exchange market, its exchange rate is determined by the interaction of its demand and supply functions. It is conventional to illustrate this theory with the help of normal demand and supply curves.The basics of this theory may be explained on the simplifying assumption that there are only two currencies in the foreign exchange market, say, the Indian Rupee and the US Dollar. As a result, supply of rupees in the exchange market generates an equivalent demand for dollars and vice versa.Demand for rupees comes from several sources like Indian exports of goods and services, travel by foreigners in India, and inflows of funds on account of gifts, charities, remittances of earnings from…

When trading countries are on gold standard, such that gold bullion and/or coins can be freely exported from and imported into the trading countries from each other, we get a situation in which the exchange rate is determined by the ratios of metallic contents of the currencies.This conclusion holds even when only paper currencies are used for domestic circulation and gold is used only for inter-country shipments. Similarly, the basic theory stands even when the trading countries are on different metallic standards.The authorities of a gold standard country commit themselves to buying and selling unlimited quantities of gold (and allowing its export and import) against the domestic currency at fixed prices. upload.wikimedia.org ADVERTISEMENTS: Under the circumstances, therefore, the exchange rate between any two currencies is determined by their mint parity,…

“A promissory note is an instrument in writing (not being a bank note or a currency note) containing an unconditional undertaking signed by the maker, to pay a certain sum of money only to, or to order of a certain person, or to the bearer of the instrument.”The person who makes the promise to pay is called the Maker. He is the debtor and must sign the instrument. The person who will get the money (the creditor) is called Payee. Image Source: 2.bp.blogspot.com Essential Elements: ADVERTISEMENTS: From the definition given in the Act it is apparent that the following essential requirements must be fulfilled by an instrument intended to be a promissory note:1. The instrument must be in writing.2. The instrument must be signed by the maker of it. A…

“A Bill of Exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of a certain person or to the bearer of the instrument.” The maker of a bill of exchange is called the Drawer. The person who is directed to pay is called the Drawee. The person who will receive the money is called the Payee. When the payee has custody of the bill, he is called the Holder. It is the holder’s duty to present the bill to the drawee for his acceptance. The drawee signifies his acceptance by signing on the bill. After such signature the drawee becomes the Acceptor.In a bill of exchange sometimes the…

The functions performed by the World Bank follow from the objectives set out in its articles when it was formed. They can be summed up as follows.(a) It grants loans for long and medium terms: Loans may be divided in two types: Reconstruction Loans and Development Loans. The first is given to countries” damaged by the last war, the second to all countries who require such loans for development purposes.(b) The bank gives loans to governments and also to private borrowers (to industrial concerns for particular projects). In the later case the bank demands a guarantee from the government, the central bank and similar organizations of the region in which the project is to be undertaken. The bank generally does not provide the entire cost of a private project. The…

Alauddin was motivated to adopt the market regulations and price control policy due to the following factors and considerations: Image Source: grammarly.com1. Alauddin Khalji had organized a vast army in order to check the incessant invasions of the Mongols and to attain victories for the expansion of his territory. As the number of soldiers reached 4,75,000, the expenses in the army were enormous. No doubt, the Sultan had increased his income by introducing reforms in the revenue system and reduced the salaries of the soldiers but it too proved in­sufficient to meet the entire expenses of the Sultanate. Besides this, it was essential to make the lives of the soldiers comfortable to avoid revolts out of frustration. Hence he fixed the prices for the satis­faction of the soldiers. Barani writes…

Narayan’s The Financial Expert (1952), is his masterpiece. William Walsh hails Margayya, the hero of the novel as “probably Narayan’s greatest single comic creation.” It is an extremely well constructed novel, in five parts corresponding to the five Acts of an Elizabethan drama. The Financial Expert tells the story of the rise and fall of Margayya, the financial expert.The protagonist of the novel, Margayya begins his career as petty money-lender doing his business under the Bunyan tree, in front of the Central Co-operative Land Mortgage Bank in Malgudi. He helps the shareholders of the bank to borrow money at a small interest and lends it to the needy at a higher interest. In the process, he makes money for himself.The Secretary of the Bank and Arul Doss, the peon, seize…

The following are the main limitations of the monetary policy adopted by the Reserve Bank: 1. Restricted Scope of Monetary Policy in Economic Development: In reality the monetary policy has been assigned only a minor role in the process of economic development. The monetary policy is not given any predominant role in the process of economic development.The role assigned to the Reserve Bank is minor indeed. The Reserve Bank in expected to see that the process of economic development should not be hindered for want of availability of adequate funds. Image Source: faadooindians.com 2. Limited Role in Controlling Prices: ADVERTISEMENTS: The monetary policy of Reserve bank has played only a limited role in controlling the inflationary pressure. It has not succeeded in achieving the objective of growth with stability.The former…