answersLogoWhite

0


Best Answer

Time, is Money

User Avatar

Wiki User

14y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What time value of money applications are used by commercial banks?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What are the financial applications of the time value of money?

(a) list various financial applications of the time value of money (b) Explain the components of a discount/ interest rate


Does a bank violate any law by refusing to exchange coin for paper money of the same value?

No, banks are free to accept or reject coin at their will. Similarly, banks can accept or reject paper money at will.


How do banks use mathematics?

The banks count money. They figure out the value of a loan, they figure how much they lost when the stock market hits rock bottom.


Do banks for kids help the children learn money minding?

Banks for kids teach kids about the value of money. This in fact can lead to them learning the differences between needs, wants and wishes. Also they introduce them to setting goals to help saving money.


Whats the commercial value of Penguins?

penguins do not have any commercial value.


How much is a 1834 ten dollar bill worth?

The United States Treasury did not issue money until 1861. Before then, money was created by banks. Hundreds of banks issued ten dollar notes. It would be impossible to determine the value without more information.


Of what commercial value is yeast?

no value


Why did many banks fail after the stockmarket crashed?

on October 29, 1929, $10- $15 billion loss in value and stocks fell drastically. This is when the Stock Market crashed Why did many banks fail after the stock market crashed? because they invested in the stock markets, so when it crashed they lost all their money


Why can't banks just create money at will so that all people will have what they need?

If banks produce more money to suit everyone's needs, something called inflation occurs. Inflation will cause the purchasing power of money to decrease, that is, a loss of value of money. The money will be worth less to account for the extra money.


Where can I cash in the value of these 2 dollar bills?

The United States two dollar bill are rare pieces of money that are not printed any more. You can cash in the value of these bills at most American banks.


How much would a coin from Aisa sell for in the US?

A coin from Asia would sell for its equivalent value in the US. As in every country, there are money changers at international airports where any money can be exchanged. Also, many banks will exchange money.


Explain each qualitative credit control tools of RBI?

Central bank uses credit rationing to fix the credit ceiling allowed for each and every commercial bank. It means that central bank fixes the credit limit for each commercial bank and does not give credit to them beyond that limit. Whenever the central bank desires to decrease the money supply it decreases the limit up to which it can give loans to the member banks. Similarly central bank can increase the money supply by increasing the credit limit.Every commercial bank has to keep a margin whenever it extends loans against the security. It means that the amount of loan is lower than the actual value of security. For example actual value of security is 100 and the amount of loan is 85, therefore margin requirement is 15%. Central bank can increase or decrease the money supply by changing the margin requirements. For example if central bank wants to decrease the money supply it can do so by increasing the margin requirements. In this way amount of loans decreases.Consumer creditfacility refers to the act of selling a consumer good on a credit basis to the people. The method is used by government or central bank to implement certain regulations on goods sold on credit. If the central bank wants to increase the money supply it can do so by adopting a lenient policy about the credit for purchase of consumer goods. Similarly central bank can reduce the money supply by putting restrictions on consumer credit.In some cases central bank morally persuades or requests the commercial banks not to indulge themselves in such economic activities which are against the interest of country. It regularly advises and guides the member banks to follow a particular policy for loans and refrain themselves from giving loan for speculative purposes.Central bank also publishes details concerning its policies and important information about assets and liabilities, credit and business situation etc of commercial banks. This helps to make commercial banks as well as general public realize the monetary needs of country. Central bank reveals some of the important information about the commercial banks so that the people know about the various activities of commercial banks and can protect themselves from any potential loss in the future.Direct action is the last resort through which central bank takes a direct action against the bank which does not act in accordance with the policy of central bank. In case of direct action the central bank can impose fine and penalty and can refuse to give out loans to the commercial bank. Such type of pressure keeps commercial banks away from undesired credit activities.