lunes, agosto 19, 2019

What are the types of banks based on its property?

In the banking sector there are many different entities operating, each of them serving particular interests. Each bank has a specific purpose and operates with some products although they need to meet specific conditions to be able to develop their activity within the bank. National or Republic Banking and supranational organizations are in charge of controlling the relationship of financial entities that operate in...

Types of banks based on their activity

Central Bank or Issuer: In this case it is popularly called "bank of banks", because they are the entities that are in charge of directing and supervising the operation of the financial system of a country. They are also called issuer because among their tasks is to issue the bills and coins that are in circulation in...

Functions and objectives of the Central Banks

The functions and objectives of the Central Banks depend on each country, which has its own central bank, in the case of the European Union there is the European Central Bank (ECB) and each member also has its own central bank, all of them coordinated and backed by the ECB. Objectives of the Central Banks The main objective of any central...

What is fiduciary money?

Fiduciary money or inorganic money is money that is backed by the confidence of a society, that is, it is not based on the value of precious metals but on the general belief that money has value. It is also known as paper money or inconvertible money. For most of history, money had intrinsic value, that is, currency or...

Issuance of money

The issuance of money is the creation of currency so that the agents that participate in the economy (that is, the State, companies and families) can use it in their transactions. The main purpose of the issue of currency is to inject liquidity into an economy so that it can be used in commercial transactions. With the issuance of money, it is about...

Advantages and Disadvantages of electronic money

Advantages of electronic money Electronic money presents important advantages with respect to fiat money: Avoid the cost and risk associated with transporting and / or storing large amounts of money. It is possible to program the chip with electronic money so that it can only be used for a particular destination thus eliminating the risk of detours, thefts or losses. For example,...

What is electronic money and how it works?

The E-money is a value or means of payment that is stored on an electronic medium by which you can make transactions without necessarily involving a bank or other financial institution. Electronic money in its broadest concept includes any payment system that involves a digital medium. This would include prepaid cards, credit cards or electronic wallets, among others. All these media use...

What is a debit card?

The notion of debit, which comes from the Latin word debĭtum, is used in the field of economics and finance. The dictionary of the Royal Spanish Academy (RAE) recognizes the term as synonymous with debt: an obligation that must be satisfied or paid. If we focus on the field of accounting, the debit is an entry that is recorded in the debit and represents something that...

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