Should You and Your Spouse Keep Your Finances Separate

Should You and Your Spouse Keep Your Finances Separate Should You and Your Spouse Keep Your Finances Separate? Should You and Your Spouse Keep Your Finances Separate?Theres no one-size-fits-all approach to managing money in a marriage, but there are some best practices you can follow no matter what.Even the best marriages are going to have disagreements. Unless you’re planning to marry yourselfâ€"and we don’t yet have the technology capable of doing thatâ€"there are going to be some conflicts that will have to be navigated.And any conflict becomes more difficult to manage when there’s money on the line. And there’s almost always money on the line in some way.“First and foremost, note that opposites attract, and this also applies to money,” financial coach and author  Karen Ford told us. “If you’re a saver, then most likely your mate is a spender. If you’re a spender, then they are more than likely a saver. Being opposites in this is ok, as long as you recognize the difference and the challenges.”But recognizing the differences is the easy part. The challenge is overcoming them. And one of the most fundamental finance questions you’ll have to decide with your spouse is whether you’re going to keep those aforementioned finances separate.Unfortunately, theres no right Different experts have different opinions for different couples about whether and how you should keep your finances separate. Let’s see what they have to say! Consider imposing dollar limits.You probably spend a large portion of your time, if not most of it, with your spouse. That means you’re going to be making a lot of purchases together. Even when you aren’t together, your spouse probably has a pretty good sense of what you’re spending money onâ€"minus the surprise party you’re planning. Don’t worry, we won’t tell!So it certainly makes sense on some level, at least, to merge your finances.“For some couples, combining everything into one account will work well,” advised Derek Hagen, founder of  Hagen Financial. “Its easier to have just one account and they are abl e to jointly manage their finances.To help manage their joint finances, they may implement a dollar limit on purchases. For example, if its $100, then they can spend whatever they want, with no explanation necessary, if the transaction is less than $100. The flip side is that all transactions over $100 require a conversation.”Symbolism matters.Beyond the convenience, other contributors highlighted how joining your finances can be seen as a symbolic move echoing how your lives are being joined together.“The best case with married couples is to put your money together,” Ford suggested. “You entered into marriage knowing you want to go through life together and this applies to finances. Discuss your spending and savings goals. Prepare for vacations, big purchases, investments etc.”Raffi Bilek, a  couples counselor and the director of the  Baltimore Therapy Center (@ThingsCanBeDiff), offered his own take on the value of merging finances:“Joining finances with your spouse is an important part of building a life together. A marriage is not a business arrangement in which both parties are trying to maximize their own benefit. It is a relationship built on trust and mutuality.Coming together as a team is what its all about, whether in finances, parenting, or any other aspect of life. Sharing expenses, instead of counting whos paying for what, is a meaningful part of that. Its hard to feel like youre on the same team when you feel like there is ‘my money’ and ‘your money.’”In order to coordinate, you must communicate.Of course, there are financial decisions to make beyond spending. It’s a good idea to be on the same page about your long-term, overall finance goals.“It’s perfectly OK for couples to have different risk tolerances and investment portfolios, such as one spouse being an aggressive investor while the other is moderate,” assured Larry Solomon, client advisor at Mercer Advisors (@MercerAdvisors).“However, for planning purposes f or big picture goals, like retirement, college planning for kids, buying a house,  insurance decisions, etc. it’s important that both spouses embrace a coordinated and holistic approach and evaluate their combined finances in establishing and prioritizing major goals.“In retirement, for example, we can assume they will also be living together and sharing common lifestyle expenses even if one of them is still working and this would be impossible if they have completely separate plans and pools of resources to draw on. Having totally separate plans and retirement assets would be a recipe for discord, disaster, and probably divorce.Furthermore, when it comes to retirement planning for couples, one spouses decisions often have a dramatic impact on the other spouse’s financial choices.For example, to maximize cumulative Social Security benefits over both spouses’ lifetimes, the best approaches might involve one spouse starting Social Security at normal retirement age while the o ther one delays it to allow their benefits to grow.These Social Security claiming strategies, which can achieve thousands of additional benefit dollars for married couples, cannot be implemented without cooperation and joint planning.“Other decisions, like whether a couple will hold assets in a trust or how to save for each child’s college, also requires planning and consent from both partners.I can go on with many more examples and insights, but the bottom line is that like most other things for couples, successful financial planning involves collaboration, cooperation, and compromise from both partners. Couples can have different portfolios and investment profiles, but need to share common goals and have a coordinated plan to achieve them.”So are joint finances definitely the way to go? As the opening paragraphs of this very article made clear, that is not necessarily the case!Spare yourself from money fights.Some of the experts we talked to were much less enthusiastic about the idea of merging finances completely.“When a couple admits to keeping their finances separate, even if its partially, theyre usually met with quizzical or worried looks,” explained Marie Oates, a partner at The Hive Law, Atlanta Divorce Attorneys. “Some people immediately assume that theres something wrong with the marriage; however, this can be one of the best ways to save your marriage.“Money-related fights are one of the biggest reasons we have divorce clients. Since people are uncomfortable talking about money and they already know that money can cause disputes, they think that not talking about it will fix their issues.“Instead, keep your money separate. Its not some sign that you two dont trust one another; instead, its more of a show of respect. My husband and I keep our money mostly separated so that neither of us feels ashamed or guilty for spending money on something we want.When he wants new woodworking equipment, it comes from his account. That is money I d o not see, so I do not miss it. Its also money that he worked for. And when I wanted a new Garmin watch, it was taken from my own, separate account.“As for a shared account, most people make that the default ‘bills’ account. The things that keep the household running: mortgage, electricity, car payments. The fun stuff. Each of us fund this account, but in proportion to what we make. Since I make more money than my husband, I put more money into the joint account than he does.”Open a joint account for joint expenses.Money Elevation Coach Roslyn Lash (@RosLash) felt similarly: “Each spouse should have their personal accounts. This money is theirs to save or spend however they choose. There should also be a ‘household’ account. This account will be used solely for household expenses.“The decision then becomes ‘how much should each person contribute?.’ This becomes especially difficult if one partner makes significantly more than the other. Splitting the bills 50/50 would be disproportionate and unfair.The only fair way to divide the bills is based on each partners percentage of income. The total household income and the amount of the total household bills would be used to determine each persons contribution.For example, lets say that one person (A) earns $4,500 monthly, and their partner (B) earns $3,500, for a total household income of $8,000. Their total household bills are $5,000 monthly.Therefore, you would calculate Person As percentage by dividing the individuals income by the total income ($4,500/$8,000) which will result in 56 percent.  Person B would be responsible for the difference of 44 percent (100 percent 56 percent). Person A would pay $2,800 ($5,000 x .5), and Person B would pay $2,200 ($5,000 x .44).”Different strokes.Most of the experts who offered reasons and methods to merge your finances in the previous section also acknowledged that separate finances might be a better arrangement for some couples.“For others, keepin g two sets of accounts works,” Hagen told us, expanding on his earlier suggestions. “Each persons paycheck goes into his or her account and all personal expenses come out of the respective account. They may even have a joint account set up for joint expenses, like bills, and each transfers half of each bill into the joint account.”But there’s no reason to assume there’s going to be a one-size-fits-all (or even a two-size-fits-all) approach to managing married finances.The one thing all of our experts agreed on is that no two married couples are the same, and therefore there isn’t any single method guaranteed to lead to a marriage as perfect as [INSERT CELEBRITY COUPLE WHO WILL PROBABLY BE BROKEN UP BY THE TIME THIS ARTICLE IS PUBLISHED].Why not try both?As you probably noticed, even the experts who lean more towards one side or the other still tend to recommend some sort of mix. Those who suggest blending finances often advise still having some money each spouse controls at their discretion. Those who suggest keeping finances separate still recommend having a joint account to use for shared bills and similar expenses.“In the middle of those two, is a third method,” offered Hagen. “With this, most everything is handled in joint accounts, but there are two individual spending accounts. Similar to having a transaction limit, the couple decides how much will get transferred from the joint account into the individual accounts. For example, if its $100 per month into each account, then each partner gets to use that account however he or she wants.”Making a marriage work isn’t always easy. But if you’re open and willing to talk about issues like finances, your relationship will be stronger for it.  To learn more about managing your finances, check out these related posts and articles from OppLoans:The (Comprehensive) Couple’s Guide To Budgeting8 Good Habits to Get Your Financesâ€"and Your Lifeâ€"on TrackFrom Budget to Baller: 6 Tips to Grow Your Money8 Ways To Save Money Today, Tomorrow and Every Day AfterDo you have a personal finance question youd like us to answer?  Let us know! You can find us  on  Facebook  and  Twitter.  |  InstagramContributorsRaffi Bilek is a couple’s counselor and director of the  Baltimore Therapy Center (@ThingsCanBeDiff).Karen Ford is a Master Financial Coach, Public Speaker, Entrepreneur, and Best- Selling Author. Her #1 Amazon Best Selling Book “Money Matters” is a discovery for many.  In “Money Matters” she provides keys to demolishing debt, shares how to budget correctly, and gives principles in wealth building.Derek Hagen  is the founder of  Hagen Financial, LLC, a financial coaching and counseling firm that helps clients develop a healthy relationship with money and find the motivation to change their behavior. He is the founder of the Money Health blog which  helps readers increase their financial health. Derek holds the Certified Financial Planner and Chartered Financial Analyst designations. In his free time, he enjoys all things outdoors, especially camping, hiking, and running.Roslyn Lash  (@RosLash), the  Money Elevation Coach, is an Accredited Financial Counselor?, Real Estate Investor, and the Author of The 7 Fruits of Budgeting. She works virtually with single women helping them to gain clarity around their finances, reduce debt, and increase their net worth so that they can live a more abundant life. Her advice has been featured in national publications such as USA Today, Forbes, TIME, Huffington Post, Los Angeles Times, and a host of other media outlets.Marie Oates is a partner at  The Hive Law where she focuses on Atlanta divorce cases and estate planning. She prides herself on making legal assistance affordable, accessible, and all around less scary. And in her free time, shes chasing her toddlers and cuddling with her cats.Larry Solomon is a Client Advisor for  Mercer Advisors (@MercerAdvisors) in Washington DC. He passionate about inves ting, financial planning, and delivering integrated financial, tax, legal, and risk management advice to make client’s lives better.  Prior to Mercer, he worked as the Director of Financial Planning and Investments at OptiFour Integrated Wealth Management, where he led the firm’s financial planning and investment analysis efforts. Larry is a published author and frequently contributes to articles on financial planning and investing topics in publications such as The Wall Street Journal, Financial Times, US News, The Street.com, Bankrate.com, and others. For more information, contact him at  lawrence.solomon@merceradvisors.com.

Essay on Fantasies and Realities in Red Badge Of Courage

Fantasies and Realities in The Red Badge Of Courage In The Red Badge of Courage by Stephen Crane the main character, Henry Fleming, thought he understood the war between the North and the South. However, his understanding came â€Å"from his knowledge of fairy tales and mythology†(Gibson 21). Henry thought that he was like the heroes that he read about in these stories. He soon learned that real war was very different from his imaginative expectations. Crane took Henry’s fantasies and contrasted them with the realities of the war to develop this main character into a mature person. Henry spent his early life on a farm in Virginia. Henry’s perception of the world was shaped almost entirely by the books his†¦show more content†¦He tried to measure himself by the heroes in his dreams, but he was unable to sense any assurance in them. He became homesick, lonely, and unhappy because of his constant worries about whether he would be brave in battle. He finally concluded that he would not know the answer until he actually was in a battle. Now he became eager to fight so that he could prove his courage. Much later after Henry received his wound, he returned to his company â€Å"and is greeted as a hero†¦ he thinks himself ‘a man of experience†¦Ã¢â‚¬â„¢ chosen by the gods and doomed to greatness’†(Walcut). He could not wait until he returned home to be greeted by circles of adoring women. Early in the war, rumors and speculations were rampant. Henry and the other soldiers were happy and confident as they looked forward to their first real skirmish. Henry’s early war experiences were that of setting up camp and marching from one place to another. Early in the war Henry felt that he was better able to understand what was going on in battle than the general and his staff of officers, who were experienced and who had access to information concerning the battle which he did not have. 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Bcom/275 Week Four Individual Assignment Essay - 796 Words

Week Four Individual Assignment To: The Family of the Trapped Mines It is with great regret, and deepest sorrow that I announce to you today, August 5, 2010, the collapsing of our Copper mine in Copiapà ³ trapping our family members far below the surface. At this moment we are not aware of their fate, or location, and we are making every effort possible to rescue your loved ones, and bring them back safely. We have contacted our Mining Minister Laurence Golborne to assist us with the rescue efforts. President Sebastian Pinera is also aware of this tragic accident. Our rescue workers’ current main objective is to locate your loved ones as quickly as possible, and determine how many may be critically injured. We intend to drill five†¦show more content†¦We are not in a position to estimate how long it may be before we can remove our family members from harm but believe no stone will be left unturned until we bring everyone last one home safely. To: Employees of Compania Minera San Esteban Primera To employees of Compania Minera San Esteban Primera, we have suffered a terrible accident today August 05, 2010. Thirty-three of our fellow employees have been trapped as a result of collapse of our mining tunnel. We do not yet know the fate of our dearest co-workers but we have begun the emergency rescue process. First, our rescue workers’ current main objective is to locate our employee as quickly as possible, and determine how many may be critically injured. We intend to drill five inch bore-holes in diameter to help find their location. After we locate them we will make an attempt to provide food, water, and medical supplies to help sustain their health. To understand better the circumstances your co-workers are in we will provide you consistent update, and further discussions will take place via e-mail, emergency phone lines, and text message. Please understand that all of our efforts, and resources must be concentrated in the rescue efforts. I expect serious concerns, a wide array of emotions, and tempered anger at the result of these events. I urge everyone to remain calm, and steadfast. As the owner of Compania Minera San Esteban Primera, I take full responsibility for the events of today.Show MoreRelatedBCOM 275 All Class Assignments and DQs – A Graded Material Essa y703 Words   |  3 PagesBCOM 275 All Class Assignments and DQs – A Graded Material http://homeworklance.com/downloads/bcom-275-complete-course-business-comm-critical-thinking-amaterial/ BCOM 275 All Class Assignments and DQs – A Graded Material BCOM 275 Week 1 Individual Exercise 1.1 Complete exercise 1.1 from Ch. 1 of Communicating in the Workplace. Choose two misunderstandings you experienced and fill out the chart for these. Respond to questions 1 and 2 shown under the chart for each example of a misunderstandingRead MoreBCOM 275 Complete Class1327 Words   |  6 Pagesï » ¿BCOM 275 Complete Class   Ã‚  Ã‚   Check this A+ tutorial guideline at http://www.assignmentcloud.com/BCOM-275/BCOM-275-Complete-Class. For more classes visit http://www.assignmentcloud.com BCOM 275 Week 1 DQ 1 What are some ways in which receivers of messages provide feedback when listening or reading a message? What effect does this have on the message?   Ã‚  Ã‚   Check this A+ tutorial guideline at http://www.assignmentcloud.com/BCOM-275/BCOM-275-Week-1-DQ-1Read MoreTerm Essay2794 Words   |  12 PagesSyllabus BCOM/275 Version 2 1 Syllabus School of Business BCOM/275 Version 2 Business Communication and Critical Thinking Copyright  © 2011 by University of Phoenix. All rights reserved. Instructor: Jon Olson 12/18/2012 – 02/04/2013 Course Description This course introduces students to the foundations of communication in a business setting. Students will develop skills in critical thinking and decision making through the forms of written communication, including memos, emails, businessRead MoreAnz Bank142091 Words   |  569 Pages271 7,117 6,310 6,492 15.8% 15.4% 0.97% 2.13% 142,064 15.0% 15.3% 0.93% 2.22% 132,347 43.7% 1.17% 44.7% 1.17% 44.6% 1.22% 44.9% 1.22% Individual credit impairment charge ($m) Collective credit impairment charge/(release) ($m) 1,141 (155) 1,158 30 Total credit impairment charge ($m) Individual credit impairment charge as a % of average net loans and advances Total credit impairment charge as a % of average net loans and advances 986 0.22% 0.19% 1

Role of Commercial Banks in Development Free Essays

string(327) " commercial banking system include removal of procedural and transactional bottlenecks including elimination of Service Area Approach, reducing margins, redefining overdues to coincide with crop cycles, new debt restructuring policies, one time settlement and relief measures for farmers indebted to non-institutional sources\." Role of commercial banks in development. INTRODUCTION A commercial bank is something with which every one of us is well known. However different bankers and economists have defined it in a different way:   According to Kent: â€Å"An organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure. We will write a custom essay sample on Role of Commercial Banks in Development or any similar topic only for you Order Now † According to Banking Companies Ordinance 1962: Banking means the accepting for the purpose of lending or investing of deposits of money from the public repayable in demand or otherwise and withdraw-able by cheque, draft order or otherwise. † Various economists have different views about the role of commercial banks in economic development. Schumpeter says,  Ã¢â‚¬Å"It is the banking system which serves as a key agent along with the entrepreneur in the process of economic development†. According to  Prof. Cameron  in his â€Å"Banking and Economic Development†, â€Å"a banking system may make a positive contribution to economic growth and development. Evolution of Commercial Banks The foundation for building a broad base of agricultural credit structure was laid by the Report of the All-India Rural Credit Survey (AIRCS) of 1954. The provision of cultivator credit in 1951-52 was less than 1% for commercial banks. In the report it was observed that agri cultural credit fell short of the right quantity, was not of the right type, did not fit the right purpose and often failed to go to the right people. With a view to give an impetus to commercial banks, particularly, in the sphere of investment credit, the nationalization of the Imperial Bank of India and its re-designation as the State Bank of India (SBI) was recommended. Growth in Outreach 1951-91 From the position prevalent in 1951-52, commercial banks came a long way with a substantial spread of 32,224 branches in rural and semi-urban areas comprising 68% of their total outlets as on 31 March 1991. The outstanding deposits of such branches at Rs. 7,855 crores as on the same date constituted around 35% of their total deposits, while loans outstanding at Rs. 43,797 crore comprised 36% of outstanding credit. The agricultural advances of the commercial banking system aggregated Rs. 16,687 crore and constituted 14% of total advances in March 1991. The rural and semi-urban branches of commercial banks covered 17. 6 crore deposit accounts while the number of loan accounts serviced aggregated 3. 7 crore. Growth during 1991-92 to 2003-0 4 The period since 1991-92 has seen a fairly rapid expansion of credit to agriculture. Available data indicate that the flow of credit to agriculture by commercial banks and RRBs taken together increased to Rs. 60,022 crore in 2003-04. This implies a compounded annual growth rate of 22. 2%. In fact, as compared with commercial banks (including RRBs), the flow of credit from the cooperative sector was much slower through this period. The compounded annual growth rate of credit for agriculture from cooperative institutions was only 13. 7%. Further, the proportion of agriculture credit to total credit came down because of the rapid growth in non agriculture credit. The Government took some major initiatives during the period to boost agriculture production and productivity through enhanced credit flow and by way of building agricultural infrastructure, particularly irrigation and connectivity in rural areas. Special Agricultural Credit Plan (SACP) was introduced by RBI for Public Sector Commercial Banks in 1994-95. Credit growth for agriculture and allied sectors under this caption reflected a CAGR of 36. 45% during 2001-02 to 2005-06. SACP has since been extended to Private Sector Commercial Banks from 2005-06. The SHG – Bank Linkage Programme was started as a pilot project by NABARD in 1992. It led to the evolution of a set of RBI approved guidelines to banks to enable SHGs to transact with banks. Initially there was slow progress in the programme up to 1999 as only 32,995 groups were credit linked during the period 1992 to 1999. Since then the programme has been growing rapidly and the cumulative number of SHGs financed increased from 4. 61 lakhs on 31 March 2002 to 10. 73 lakhs on 31 March 2004 and further to 29. 25 lakh groups as on 31 March 2007. Rural Infrastructure Development Fund (RIDF) was set-up in NABARD by GoI during 1995-96 with an initial corpus of Rs. 2000 crore, to accelerate the 47 completion of on-going projects of rural infrastructure. Banks which did not fulfill the priority sector credit requirement and agriculture credit mandate were required to contribute to this Fund. The fund has been strengthened every year with additional allocations in the Union Budget. A large number of irrigation and rural connectivity projects could get completed under RIDF. RBI scaled down its contribution to the Rural Credit funds with NABARD to a token amount of Rs. crore per annum since 1993-94. However to enable NABARD to have reasonably strong leverage for accessing market funds, the share capital of NABARD was strengthened and increased to Rs. 2000 crore (paid up) from Rs. 100 crore at the time of its formation in 1982. Contributions to enhanced share capital have come from GoI and RBI. By prudent funds management, the instit ution has also built a strong base of reserves and has been using it in its business operations judiciously to keep lending rates to rural financial institutions at significantly lower than market costs. Developments – Post 2003-04 Since 2003-04, there has been a substantial increase in the flow of credit to agriculture through commercial banks. Disbursements have increased from Rs. 52,441 crore in 2003-04 to Rs. 1,16,447 crore in 2005-06, reaching an annual growth of 43% each year. As envisaged in the GoI’s strategy for â€Å"doubling of credit†, 95 lakh new farmers have been brought under the institutional fold and 1,383 agri-clinics opened. Commercial banks have also played a major role in the promotion of the SHG – bank linkage movement with more than 11. 88 lakh groups being linked to banks for provision of credit. Reforms in the commercial banking system include removal of procedural and transactional bottlenecks including elimination of Service Area Approach, reducing margins, redefining overdues to coincide with crop cycles, new debt restructuring policies, one time settlement and relief measures for farmers indebted to non-institutional sources. You read "Role of Commercial Banks in Development" in category "Papers" Banks play a vital role in the economic development of a country. They accumulate the idle savings of the people and make them available for investment. They also create new demand deposits in the process of granting loans and purchasing investment ecurities. They facilitate trade both inside and outside the country by accepting and discounting of bills of exchange. Banks also increase the mobility of capital. They provide a variety of facilities for remitting a large amount of money from one place to another by the transfer of a mere slip of paper. Commercial banks play an impo rtant and active role in the economic development of a country, if the banking system in a country is effective, efficient and disciplined; it brings about a rapid growth in the various sectors of the economy. The Functions of Commercial Banks In the modern world, banks perform such a variety of functions that it is not possible to make an all-inclusive list of their functions and services. However, some basic functions performed by the banks are discussed below. 1. Accepting  Deposits The first important function of a bank is to accept deposits from those who can save but cannot profitably utilize this saving themselves. People consider it more rational to deposit their savings in a bank because by doing so they, on the one hand, earn interest, and on the other, avoid the danger of theft. To attract savings from all sorts of individuals, the banks maintain different types of accounts: (i) Fixed Deposit Account: Money in these accounts is deposited for fixed period of time (say one, two, or five years) and cannot be withdrawn before the expiry of that period. The rate of interest on this account is higher than that on other types of deposits. The longer the period, the higher will be the rate of interest. Fixed deposits arc also called time deposits or time liabilities. (ii) Current Deposit Account: These accounts are generally maintained by the traders and businessmen who have to make a number of payments every day. Money from these accounts can be withdrawn in as many times and in as much amount as desired by the depositors. Normally, no interest is paid on these accounts; rather, the depositors have to pay certain incidental charges to the bank for the services rendered by it. Current deposits are also called demand deposits or demand liabilities. (iii) Saving Deposit Account: The aim of these accounts is to encourage and mobilise small savings of the public. Certain restrictions are imposed on the depositors regarding the number of withdrawals and the amount to be withdrawn in a given period. Cheque facility is provided to the depositors. Rate of interest paid on these deposits is low as compared to that on fixed deposits. (iv) Recurring Deposit Account: The purpose of these accounts is to encourage regular savings by the public, particularly by the fixed income group. Generally money in these accounts is deposited in monthly installments for a fixed period and is repaid to the depositors along with interest on maturity. The rate of interest on these deposits is nearly the same 3s on fixed deposits. (v) Home Safe Account: Home safe account is another scheme aiming at promoting saving habits among the people. Under this scheme, a safe is supplied to the depositor to keep it at home and to put his small savings in it. Periodically, the safe is taken to the bank where the amount of safe is credited to his account. 2. Advancing  of loans The second important function of a bank is advancing of loans to the public. After keeping certain cash reserves, the banks lend their deposits to the needy borrowers. Before advancing loans, the banks satisfy themselves about the credits worthness of the borrowers. Various types of loans granted by the banks are discussed below: (i) Money at Call: Such loans are very short period loans and can be called back by the bank at a very short notice of say one day to fourteen days. These loans are generally made to other banks or financial institutions. (ii)  Cash Credit: It is a type of loan, which is given to the borrower against his current assets, such as shares, stocks, bonds, etc. Such loans are not based on personal security. The bank opens the account in the name of the borrowers and allows him to withdraw borrowed money from time to time up to a certain limit as determined by the value of his current assets. Interest is charged only on the amount actually withdrawn from the account. (iii) Overdraft: Sometimes, the bank provides overdraft facilities to its customers though which they are allowed to withdraw more than their deposits. Interest is charged from the customers on the overdrawn amount. (iv) Discounting of Bills of Exchange: This is another popular type of lending by the modern banks. Through this method, a holder of a bill of exchange can get it discounted by the bank. In a bill of exchange, the debtor accepts the bill drawn upon him by the creditor  (i. e,  holder of the bill) and agrees to pay the amount mentioned on maturity. After making some marginal deductions (in the form of commission), the bank pays the value of the bill to the holder. When the bill of exchange matures, the bank gets its payment from the party, which had accepted the bill. Thus, such a loan is self-liquidating. (v)  Term Loans: The banks have also started advancing medium-term and long-term loans. The maturity period for such loans is more than one year. The amount sanctioned is either paid or credited to the account of the borrower. The interest is charged on the entire amount of the loan and the loan is repaid either on maturity or in installments. . Credit Creation A unique function of the bank is to create credit. In fact, credit creation is the natural outcome of the process of advancing loan as adopted by the banks. When a bank advances a loan to its customer, it does not lend cash but opens an account in the borrower’s name and credits the amount of loan to this account. Thus, whenever a bank grants a loan, it create s an equal amount of bank deposit. Creation of such deposits is called credit creation which results in a net increase in the money stock of the economy. Banks have the ability to create credit many times more than their deposits and this ability of multiple credit creation depends upon the cash-reserve ratio of the banks. 4. Promoting Cheque System: Banks also render a very useful medium of exchange in the form of cheques. Through a cheque, the depositor directs the bankers to make payment to the payee. Cheque is the most developed credit instrument in the money market. In the modern business transactions, cheques have become much more convenient method of settling debts than the use of cash. 5. Agency Functions: Banks also perform certain agency functions for and on behalf of their customers: (i) Remittance of Funds: Banks help their customers in transferring funds from one place to another through cheques, drafts, etc. (ii) Collection and Payment of Credit Instruments: Banks collect and pay various credit instruments like cheques, bills of exchange, promissory notes, etc. (iii) Execution of Standing Orders: Banks execute the standing instructions of their customers for making various periodic payments. They pay subscriptions, rents, insurance premium, etc. on behalf of their customers. (iv) Purchasing and Sale of Securities: Banks undertake purchase and sale of various securities like shares, stocks, bonds, debentures etc. on behalf of their customers. Banks neither give any advice to their customers regarding these investments nor levy any charge on them for their service, but simply perform the function of a broker. (v) Collection of Dividends on Shares: Banks collect dividends, interest on shares and debentures of their customers. (vi) Income Tax Consultancy: Banks may also employ income-tax experts lo prepare income-tax returns for their customers and to help them to get refund of income-tax. (vii) Acting as Trustee and Executor: Banks preserve the wills of their customers and execute them after their death. (viii) Acting as Representative and Correspondent: Sometimes the banks act as representatives and correspondents of their customers. They get passports, travelers tickets, book vehicles, plots for their customers and receive letters on their behalf. 6. General Utility Function: In addition to agency services, the modern banks provide many general utility services as given below: (i) Locker Facility: Banks provide locker facility to their customers. The customers can keep their valuables and important documents in these lockers for safe custody. ii) Traveller’s Cheques: Banks issue traveller’s cheques to help their customers lo travel without the fear of theft or loss of money. With this facility, the customers need not take the risk of carrying cash with them during their travels. (iii) Letter of Credit: Letters of credit are issued by the banks to their customers certifying their creditwort hiness. Letters of credit are very useful in foreign trade. (iv) Collection of Statistics: Banks collect statistics giving important information relating to industry, trade and commerce, money and banking. They also publish journals and bulletins containing research articles on economic and financial matters. (v) Underwriting Securities: Banks underwrite the securities issued by the government, public or private bodies. Because of its full faith in banks, the public will not hesitate in buying securities carrying the signatures of a bank. (vi) Gift Cheques: Some banks issue cheques of various denominations (say of Rs. 11, 21, 31, 51. 101, etc. ) to be used on auspicious occasions. (vii) Acting as Referee: Banks may be referred for seeking information regarding the financial position, business reputation and respectability of their customers. viii) Foreign Exchange Business: Banks also deal in the business of foreign currencies. Again, they may finance foreign trade by discounting foreign bills of exchange. Role of Commercial Banks In Economic Development Of A Country Commercial banks  play an important and active role in the economic development of a country. If the banking system in a country is effective’, efficient and disciplined, it brings about a rapid growth in the various sectors of the economy. The economic significance of commercial banks is given in brief. (1) Banks promote capital formation. The commercial banks play an important role in rising of the financial resources. They encourage savings by giving various types of incentives to the savers. They expand branches of the banks in rural and urban areas and mobilize savings even at far of places. These savings are then made available to the businesses which make use of them for productive purposes in the country. The banks are, therefore, not only store houses of the country’s wealth, but also provide stream of resources necessary for economic development. (2) Investment in new enterprises. Businessmen normally hesitate to invest their money in risky enterprises. The commercial banks generally provide short and medium term loans to entrepreneurs to invest in new enterprises and adopt new methods of production. The provision of timely credit increases the productive capacity of the economy. (3) Promotion of trade and industry. With the growth of commercial banking in the 19th and 20th centuries, there is vast expansion in trade and industry. The use of bank draft, cheque, bill of exchange credit cards etc has revolutionized both national and international trade. (4) Development of agriculture. The commercial banks, particularly in developing countries, are now providing credit for the development of agriculture and small scale industries in rural areas. The provision of credit to agriculture sector has greatly helped in raising agricultural productivity and income of the farmers. This has led to increased demand for industrial goods and expansion of industry. (5) Balanced development of different regions. The commercial banks play an important role in achieving balanced in different regions of the country. They help in transferring surplus capital from developed regions to the less developing regions. The traders, industrialists etc of less developed regions are able to get adequate capital for meeting their business needs. This, in turn, increases investment, trade and production in the economy. (6) Influencing economy activity. The banks can also influence the economic activity of the country through its influence on (a) availability of credit and (b) the rate of interest. If the commercial banks are able to increase the amount of money in circulation through credit creation or by lowering the rate of interest, it directly affects economic development. A low rate of interest can encourage investment. The credit creation activity can raise aggregate demand which leads to more production in the economy. Which finally increases the growth of the nation. (7) Implementation of monetary policy. The central bank of the country controls and regulates volume of credit through the active cooperation of the banking system in the country. If helps in bringing price stability and promotes economic growth within shortest possible period to time. (8) Monetization of the economy. The commercial banks by opening branches in the rural and backward areas are reducing the exchange of goods through barter. The use of money has now greatly increased the volume of production of goods. The non-monetized sector (barter economy) is now being converted into monetized sector with the help  of commercial banks. (9) Export promotion cells. In order to increase the exports of the country, the commercial banks have established export promotion cells. They provide information about general trade and economic conditions both inside and outside the country to its customers. The banks are, therefore, making positive contribution in the process of economic development. Role of banks in 21st century: The commercial banks are now not confined to local banking. They are fast changing into global banking i. e. , understanding the global customer, using latest information technology, competing in the open market with high technology system, changing from domestic banking to investment banking etc. The commercial banks are now considered the nerve centre of all economic development in the country. The use of online banking is now on the increase. It has brought revolution in banking industry. CONCLUSION Commercial banks are considered not merely as dealers in money but also the leaders in economic development. They are not only the store houses of the country’s wealth but also the reservoirs of resources necessary for economic development. They play an important role in the economic development of a country. A well-developed banking system is essential for the economic development of a country. The â€Å"Industrial Revolution† in Europe in the 19th century would not have been possible without a sound system of commercial banking. In case of developing countries like India, the commercial banks are considered to be the backbone of the economy. The Banking Sector has for centuries now formed one of the pillars of economic prosperity. Indeed history provides us with some starting information regarding how banks provided finance for imperialist ventures in newly acquired colonies. Over time banks have formed an important part in providing an avenue for both savings and investments. Land, Labor, capital and entrepreneurs are the basic economic resources available to business. However, to make the use of these resources, a business requires finance to purchase of the land, hire labor, pay for capital goods and pay for individuals with specialized skills. The commercial banks provide capital, technical assistance and other facilities to businessmen according to their need, which leads to development in trade. Commercial banks finance the most important sector of the developing economics i. e. agriculture, short, medium and long-term loans are provided for the purchase of seeds and fertilizer, installation of tube wells, construction of warehouses, purchase of tractor and thresher etc. Commercial banks help in increasing the rate of capital formation in a country. Capital formation means increase in number of production units, technology, plant and machinery. They finance the projects responsible for increasing the rate of capital formation. Commercial banks help the traders of two different countries to undertake business. Letter of credit is issued by the importer’s bank to the exporters to ensure the payment. The banks also arrange foreign exchange. Commercial banks provide the facility of transferring funds from one place to another which leads to the growth of trade. The commercial banks financed the transport sector. It has reduced unemployment on one hand and increased the transport facility on the other hand. Remote areas are linked to main markets through developed transport system. These are the few ways in which the commercial banks had helped in developing the economy of a country. BIBLIOGRAPHY * Samuelson Norhaus, economics, 18th edn, Tata McGraw Hill Publishing Co. Ltd. , 2008 * Xam idea, economics, F K Publication, 2009 * Chitta Ranjan Basu, Commercial Banking in the Planned Economy of India, Mittal Publications, 1991 * N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 * www. preservearticles. com ——————————————– [ 2 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 3 ]. www. bankingsector. co. in [ 4 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 5 ]. Xam idea, economics. [ 6 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 7 ]. www. preservearticles. com [ 8 ]. www. ehow. com [ 9 ]. Samuelson Norhaus, economics, 18th edn, Tata McGraw Hill Publishing Co. Ltd. , 2008 [ 10 ]. Chitta Ranjan Basu, Commercial Banking in the Planned Economy of India [ 11 ]. Samuelson Norhaus, economics, 18th edn, Tata McGraw Hill Publishing Co. Ltd. , 2008 [ 12 ]. www. ehow. com [ 13 ]. N. Gregory Mankiw, Principles of Economics, cengage learning, 2012 [ 14 ]. www. preservearticles. com How to cite Role of Commercial Banks in Development, Papers

The Open Box Problem Essay Example

The Open Box Problem Essay I have to find out the volume of a box by using at first a square sheet and then cutting out the corners at any length. The volume of the box will differ to the amount you cut off. I will then try to find the maximum volume of an open square box. After finding the maximum volume of a square I will investigate further using rectangles sheets to cut out square edges. I will also find out the maximum volume of a rectangle sheet as well. I will use formulas and graphs to help me find out the maximum volume of both a rectangle and a square and pick out patterns seen in the tables I will make. (All measurements will be measured in centimetres)Question OneThis is an example of what I will do.1010 cut out size 2cm20x20 cut out size 3cm30x30 cut out of 4 cmQuestion TwoSome examples on how cut out will look like in question two10x20 cut out size 31030 cut out size 42030 cut out size 5ConclusionAll the formulas I found were based on the results and graphs shown. I used both my graphs and result s in question 1 to find the maximum cut out size for maximum volume and the formula for the maximum volume if using a square. The reason why I could not find the formula for the maximum cut out size for two lengths is because, using only the results and graphs, it is impossible to find the maximum cut out size. This is because the two different lengths have no relation with each other. Both sides of the rectangle are variables that have nothing in common with each other. This is because both variables can change independently.Although my results cannot show a formula there are other ways of finding a formula such as calculus. As background information to this coursework I have gotten help to prove that calculus does work in this formula.Using the formulas that I have got I can now work out the maximum cut out size to find the volume or I can find out the maximum volume of any open square box. I can also find the maximum volume of any size rectangle using my formula.Observation and E valuationThere were a lot of patterns that were obvious in my graphs but not so obvious in my results table. For example there was a straight rise in the first graph and there was an exact distance of 1.66 recurring for the cut out which helped me find my formula.I think I could have improved my results and graphs if I was to do numbers such as 15, 25, 35 etc this would have improved my graphs because there would have been more observations to write about. It would have made my formulas easy to pick out as well.I could have taken my experiment further by using other sizes. The sizes could have been more precise making my results and graphs more precise as well. There was a limited amount of shapes I could have due to the specifications of the problem because the shapes could have only been shapes with four right angle corners. Therefore leaving only two shapes to work on. The square and the rectangle.

Creation vs evolution essays

Creation vs evolution essays If you're planning a vacation later this year, better make sure it's not in Kansas. According to recent reports, the state's overall IQ has just taken a nosedive. What has caused this "giant step back into the nineteenth century" as one person called it? Quite simply, the State Board of Education voted to de-emphasize evolution in state testing and to give local school boards the option of deciding whether or not evolution would be taught. Nationwide, the reaction has been vehement. On ABC's "Politically Incorrect," Ellen Johnson, president of American Atheists, Inc., referred to the Board of Education members as "Neanderthals." Invectives like "embarrassing," "backward," "insane," "intellectual backwater," "blotting out the light of truth and knowledge," peppered the Letters to the Editor of the Wichita Eagle's online edition. Even PBS's Bill Nye, "The Science Guy," weighed in on the topic. The Associated Press quotes Nye as saying "to reject this fundamental, beautiful thing about the world around us is harebrained. It's nutty." What is striking about the reaction to the Board's decision is not that some people disagree with it. Anything as controversial as the creation/evolution debate is bound to generate a diversity of opinion. But the ferocity of the responses reveals something at work other than a simple difference in points of view concerning educational policy. After all, the Board of Education did not mandate the teaching of a particular view of creation. They did not endorse fundamental Christianity, or Judaism or Islam. They didn't even order the teaching of creation alongside of evolution. They chose merely to de-emphasize evolution and allow local school systems to decide how or if it is taught. If you listen to the voices raised in protest, you might conclude that creationism is inherently anti-scientific and anti-intellectual. Th ...

Double Negatives to Avoid

Double Negatives to Avoid Double Negatives to Avoid Double Negatives to Avoid By Maeve Maddox A French speaker who says â€Å"Je ne sais rien† raises no eyebrows among the educated, but an English speaker who says â€Å"I don’t know nothing† is immediately marked as semi-literate. (French ne corresponds to English not and rien to nothing.) Some languages, like French and Spanish, have what is called â€Å"negative concord,† usage that allows two negatives to express a single negation without being considered incorrect. Double negatives in English came to be seen as ungrammatical after the Middle Ages. Considering the wide use of double negatives in nonstandard English dialects of English, one might wonder why the double negative is disdained in the standard dialects. In 1762 a very learned English bishop named Robert Lowth (1710-1787) published A Short Introduction to English Grammar. The bishop stated this rule: Two Negatives in English destroy one another, or are equivalent to an Affirmative. Lowth was a scholar of Latin and Hebrew. Both those ancient languages lack negative concord. Bishop Lowth’s opinion has become our rule. Never use not in the same sentence as the following: hardly scarcely only (in some contexts; does not apply to not onlybut also) neither never no one nobody nothing no none Here are some examples of sentences that rarely cause confusion in nonstandard dialects, but which are incorrect in standard English: Note: the asterisk indicates that the sentence is nonstandard. *She was so weak she couldn’t hardly sit up. *Scarcely nobody came to my party. *I can’t stay only a few minutes. *I didn’t know neither her telephone number nor her address. *I never saw no one I thought prettier. *I don’t know nothing about building a compost pile. *We don’t need no education *I don’t want none of those escargots. Here are the same thoughts expressed in standard English: She was so weak she could hardly sit up. Scarcely anybody came to my party. I can stay only a few minutes. I knew neither her telephone number nor her address. I never saw anyone I thought prettier. I don’t know anything about building a compost pile. We don’t need an education I don’t want any of those escargots. Note: Not all double negatives in English earn an F from grammarians. The â€Å"not un-† construction popular in the 17th century is still acceptable in standard English. For example, here’s a comment from a travel article: â€Å"the flavor was unusual, but not unappealing.† Both not and unappealing are negatives. The idea is that the flavor is too strange to actually be â€Å"appealing,† but is nevertheless palatable. To state the thought otherwise would alter the writer’s intended meaning. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Style category, check our popular posts, or choose a related post below:Avoid Beginning a Sentence with â€Å"With†8 Types of Parenthetical PhrasesTypes of Plots