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IN 3RD OFFER, HE WILL GET MAXIMUM PROFIT.
IN 1ST OFFER, HE GET 16,80,000.
IN 2nd OFFER, HE GET 16,60,000.
IN 3rd OFFER, HE GET 17,00,000.


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Commercial banks grant loans in the FORM of overdraft, cash CREDIT, and discounting bills of exchange. (b)SECONDARY FUNCTIONS: Refer to crucialfunctions of commercial banks. Thesecondary functions can be classified under three HEADS, namely, agencyfunctions, general utility functions, and other functions.

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Process of CREDIT Creation. The BANKING SYSTEM as a whole can createcredit which is several times more than the original increase in the deposits of a bank. This process is CALLED the multiple-expansion or multiple-creation of credit

ANSWER :-
Primary Function of COMMERCIAL BANKS:-

ACCEPTING Deposits

Advancing of Loans

Overdraft Facility

Discounting BILLS of Exchange

Agency Functions

General Utility Functions.
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A fixed deposit or a FD is a bank or a NBF'C financial tool that provides creditors with a higher INTEREST rate than a regular savings account.

• A fixed deposit is a form of savings or an investment account offering a fixed interest rate to the BORROWER.
• The lender promises, in exchange, not to withdraw or use their assets for a fixed TIME frame.
• The COMPENSATION is only charged in a fixed deposit portfolio at the very end of the loan term.

Ur answer is false.. .....

Because there is difference between primary DEPOSIT and secondary deposit of a commercial BANK .

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The barter SYSTEM had many difficulties.
The most prominant one was the value of the goods because in the barter system there was no proper EXCHANGE of goods eg: SOMETIMES some-one would exchange two sacks of rice for a dozen of fishes while ANOTHER whould exchange only one sack of rice for the same quantity of fishes
The people of that TIME felt bad because there was not proper value of their goods.

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Here is the answer......

Near money is an economics TERM describing non-cash assets that are highly liquid, such as BANK deposits, certificates of deposit (CDs) and TREASURY Bills. Central banks, economists, and statisticians may utilize near money when determining the current M2 money supply. Near money refers to assets that can be quickly CONVERTED into cash. Near money is also called quasi-money.

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Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of DEBTS, such as TAXES, in a particular country or socio-economic context. The main functions of money are distinguished as: a medium of exchange, a unit of account, a store of valueand sometimes, a standard of deferred payment. Any item or verifiable record that fulfils these functions can be considered as money.

Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money.  Fiat money, LIKE any check or note of debt, is without use value as a physical commodity. It derives its value by being declared by a government to be legal tender; that is, it MUST be accepted as a FORM of payment within the boundaries of the country, for "all debts, public and private". Counterfeit money can cause good money to lose its value.

The COINCIDENCE of wants lacking a MEDIUM of exchange, which have to RELY on barter or other in-kind TRANSACTIONS. Double coincidence of wants means that the both the parties have to agree to sell and buy each COMMODITIES.

The SYSTEM in which GOODS are EXCHANGED for goods is CALLED the BARTER system.

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The most LIQUID ASSEST is MONEY

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A few of the determinants are size of the labor force, INPUT prices, technology, productivity, government regulations, business TAXES and SUBSIDIES, and capital. As wages, ENERGY, and raw material prices increase, aggregate supply decreases, all else CONSTANT.

ECONOMIC GROWTH

Economic Growth is the positive change in the real output of the COUNTRY in a particular span of time. It is a SHORT term process.

ECONOMIC DEVELOPMENT

Economic Development involves rise in the level of PRODUCTION in an economy ALONG with the advancement of technology, improvement in LIVING standards and so on.It is a long term process.

The DIFFERENCE between EXPORT and IMPORT is KNOWN as BALANCE of trade.



Central bank keeps the CASH balances of COMMERCIAL bank and issues loans to them on requirements is the same manner as the commercial bank do for its customers . A central bank has almost the same relation with other commercial bank of the country that the commercial bank have with the common public . that is CALLED central bank is also bankers bank ..


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Three Major Components or Elements of NEW ECONOMIC POLICY:

Liberalisation:

Privatisation:

Globalisation:

Increasing Competition:

More Demanding Customers:

Rapidly Changing Technological ENVIRONMENT:

NECESSITY for Change:

Need for Developing Human Resources:

The commercial banks maintain a current account with the central bank and can borrow money in the very short term. Thus, the banks which have to supply banknotes for their customers (either over the counter or through automatic teller machines) obtain them from the central bank which has an issuing monopoly.

The central bank debits their current accounts accordingly. Balances held on accounts with the central bank are also used to settle debts between banks. Finally, the central bank may require the maintenance of a minimum credit balance on the account: the monetary reserves.

All these factors CREATE a need for liquidity which causes the banks to make use of central bank credit. It is by fixing the terms for such credit that the central bank influences interest rates.

In the euro AREA, Eurosystem lending to commercial banks is effected mainly by a special procedure which consists in granting credit every week for a two-week period.

The commercial banks have to lodge a number of guarantees with the central banks; in the case of banks established in Belgium these are lodged with the National Bank. They also INDICATE the amount of credit which they wish to obtain and the interest rate which they are prepared to pay, the minimum rate being fixed by the ECB Governing Council.

These bids are sent to the European Central Bank (ECB) by the National Bank and by the other national central banks of the Eurosystem. The ECB decides the AMOUNTS to be LENT by granting credit first to the banks offering to pay the highest interest rates.

I THINK more and more TOURISM INCREASE our ECONOMY CONDITIONS

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on 28 April 2010 the ministry of road transport and Highways officially list a new NUMBERING system for the NATIONAL HIGHWAY network in gazette of Government of India

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No, the present METHODOLOGY of poverty estimation is in appropriate because it takes into account only the BASIC needs of food, clothing, fuel, etc. But the QUALITY of these basic NECESSITIES is the lowest quality available, which is not appropriate.

The THIRD quarter of the 20th CENTURY witnessed innumerable corporate failures, triggered by FRAUDS and scams WORLDWIDE. The reasons for such failures went far beyond just corporate misgovernance. Company managements with the connivance of board members and auditors conspired to defraud their stakeholders, both internal.

Currency depreciation is the loss of value of a country's currency with respect to one or more FOREIGN reference currencies, typically in a FLOATING exchange rate system in which no official currency value is MAINTAINED. Currency APPRECIATION in the same context is an INCREASE in the value of the currency.

the Union Budget of a year, also referred to as the ANNUAL financial statement, is a statement of the estimated receipts and expenditure of the government for that PARTICULAR year.it is PREPARED by MINISTRY of Finance after consultations with all the other ministries with respect to their funding requirements.

The Caribbean Community and Common Market (CARCOM) consists of twenty countries. Fifteen of these countries are full-fledged MEMBERS of the community while five of them only retain associate member status. The fifteen full-time countries are Antigua and Barbuda, Bahamas, Barbados, Belize, DOMINICA, Grenada, Guyana, Haiti, Jamaica, Montserrat, Saint Lucia, Saint Kits and Nevis, Saint Vincent and the Grenadines, Suriname and Trinidad and Tobago. The associate members are Anguilla, Bermuda, British Virgin Islands, Cayman Islands and TURKS and Caicos. Associate members retain part-time privileges.
These nations have collectively JOINED together to expand their trade and economic relations internationally, including further development of activity in international markets.
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================

In case of inferior GOODS law of demand FAILS....??

False ,,

Reason ---

Law of demand fails only when negative income effect is greater than SUBSTITUTION effect , but in inferior good substitution effect is greater than income demand , do it doesn't fails...

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Aggregate DEMAND (AD) or domestic final demand (DFD) is the total demand for final goods and services in an economy at a given time.[1] It specifies the amounts of goods and services that will be purchased at all possible price levels.[2] This is the demand for the gross domestic product of a country. It is often called effective demand, though at other times this term is distinguished.

The aggregate demand curve is plotted with real output on the horizontal AXIS and the price level on the VERTICAL axis. It is downward sloping as a result of three distinct effects: Pigou's wealth effect, KEYNES' interest rate effect and the Mundell–Fleming exchange-rate effect. The Pigou effect states that a higher price level implies lower real wealth and therefore lower consumption spending, giving a lower quantity of goods demanded in the aggregate. The Keynes effect states that a higher price level implies a lower real money supply and therefore higher interest rates resulting from financial market equilibrium, in turn resulting in lower investment spending on new physical CAPITAL and hence a lower quantity of goods being demanded in the aggregate.

Consumption function, in ECONOMICS, the relationship between consumer spending and the various factors determining it. At the household or family level, these factors may include income, WEALTH, expectations about the level and riskiness of future income or wealth, interest rates, age, EDUCATION, and family size. The consumption function is also influenced by the consumer’s preferences (e.g., patience, or the willingness to delay gratification), by the consumer’s attitude toward RISK, and by whether the consumer WISHES to leave a bequest (see legacy). The characteristics of consumption functions are important for many questions in both macroeconomics and microeconomics.

Autonomous consumption is the consumption expenditure that occurs when income levels are zero. Such consumption is considered autonomous of income only when expenditure on these consumables does not vary with changes in income; GENERALLY, it MAY be required to fund NECESSITIES and DEBT obligations.

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A few of the determinants are size of the labor force, input prices, technology, productivity, government regulations, business taxes and subsidies, and capital. As WAGES, energy, and raw material prices increase, AGGREGATE supply decreases, all ELSE constant.

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An ASSORTMENT of ceteris paribus FACTORS other than the PRICE LEVEL that affect aggregate DEMAND, but which are assumed constant when the aggregate demand curve is constructed. Changes in any of the aggregate demand determinants cause the aggregate demand curve to shift.

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The marginal PROPENSITY to consume (MPC) is equal to ΔC / ΔY, where ΔC is change in CONSUMPTION, and ΔY is change in income. If consumption INCREASES by 80 CENTS for each additional dollar of income, then MPC is equal to 0.8 / 1 = 0.8.

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The average propensity to consume (APC) refers to the PERCENTAGE of INCOME spent on goods and services rather than on SAVINGS. A PERSON can determine the percentage of income spent by DIVIDING the average household consumption, or what is spent, by the average household income, or what is earned. The inverse of the average propensity to consume is the average propensity to save (APS).

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In economics, effective demand (ED) in a market is the demand for a product or service which OCCURS when purchasers are constrained in a different market. ... The CONCEPT of effective demand or SUPPLY becomes RELEVANT when markets do not continuously maintain equilibrium prices.

The following article will guide you to learn how national income DETERMINES consumption and saving functions.

Although national income accounting provides estimates of the nation’s output, it does not explain why the nation’s output is at a certain level or why it INCREASES more rapidly in some years than in others.

In a simple Keynesian model AGGREGATE DEMAND — the sum of society’s expenditures on consumption and investment — determines the equilib­rium level of income. If aggregate demand changes, the equilibrium level of income ALSO changes.