Financial literacy – assignment
1. Give a brief description on the origin of money.
2. What are the main functions of RBI?
3. Describe few methods of saving money.
4. Differentiate between private and government banks.
5. How did the banking system originate?
Answers
Answer:
1. The first money in the form of precious metals shaped into coins appeared in three separate places (northern China, northeast India, and around the Aegean Sea) between around 600 and 500 BC, but the emergence of money as a unit of account can be traced all the way back to the Mesopotamian temple and palace.
2. Issue of Bank Notes.
Banker to Government.
Custodian of Cash Reserves of Commercial Banks.
Custodian of Country's Foreign Currency Reserves.
Lender of Last Resort.
Central Clearance and Accounts Settlement:
Controller of Credit.
3. Keep track of your spending.
Separate wants from needs.
Avoid using credit to pay your bills.
Save regularly.
Check your insurance policies.
Be careful about spending a significant amount of money on periodic purchases, like gifts and vacation.
Cut or downgrade your services.
Try lowering your energy bill.
4. Public Sector Banks are the banks whose complete or maximum ownership lies withthe government. Private Sector Banksrefers to the banks whose majority of stake is held by the individuals and corporations.
5. The history of banking began with the first prototype banks which were the merchants of the world, who gave grain loans to farmers and traders who carried goods between cities. Archaeology from this period in ancient China and India also shows evidence of money lending.