Discuss the purpose and process of budgetary control Assignment

Discuss the purpose and process of budgetary control - Assignment Example Budget control is the process of managing individual items in a budget such that expenses arising from them do not rise above the forecasted amount in the budget estimates. Budget control helps an organization/ entity to plan adequately for the future. It also helps the organization to evaluate adherence to set policies. Through budgetary control, the organization is able to minimize wastage and inefficiency (Pollitt, 2001). In itself, the budget is a tool for expenditure control within a firm. In order to stick to the laid out expenditure program and prevent excessive spending, the organization has to carry out effective budget control measures, both before and after planning. Below is an outline of the main steps of budgetary control. This phase involves drawing up a list of policy guidelines for the firm that will guide both the management and lower-level employees in their daily operations. Integrating long term policies with short term ones forms a basis for periodic evaluation of success in implementing a set of policy guidelines. Several objectives that guide the business are laid out in order of prioritization. Besides profitability, which is the key objective of most business organizations, quality, market positioning, product differentiation and cost leadership form some of the more common goals that guide policy formulation (Toigo and Woods, 2006). Whereas policy harmonization is key to achievement of set goals, each level of management rolls out several objectives that guide its specific situation. However, the goals must work towards achieving the corporate objectives laid out by the top management. Each function that is deemed to complement achievement of policies formulated is listed together with its expected costs/ revenue. The forecasts should be made at both the micro and macro levels. Micro level forecasts involve activity based costs, while macro level forecasts involve transaction

Whether or not there would be a time to use deadly force against an Essay

Whether or not there would be a time to use deadly force against an unarmed suspect, based on the provision of the case - Essay Example est." (Justia.com, 2011) In this case, suit was brought by the victim’s father in the United States District Court for the Western District of Tennessee under the Civil Rights Act of 1871. The suspect was fleeing and had been seen by officers to appear to be unarmed, in this situation the use of deadly force regardless of the Tennessee statute would have been a negative and was proven to be such upon a reversal by the court. Is the use of force ever justified when a suspect is unarmed? This question can be answered by noting a legitimate study regarding movement capabilities of individuals. If a suspect is making threatening gestures and furtive movements and is not attempting to flee an officer may be justified in using deadly force. According to Dennis Teuller in an article for the Police Policy Studies Council, â€Å"It would be safe to say then that an armed attacker at 21 feet is well within your Danger Zone.† (Teuller, 2004) This is based on a test in which several participants of varying physical ability, sex, race and age were placed 21 feet from a subject, and at a timer the â€Å"assailants† ran towards the subject and attacked them. The averag e time is generally around 1.5 seconds and shows that an unarmed attacker can still engage an officer in a very short amount of time. Using this test and the findings of the court case which stated, â€Å"†¦the officer has probable cause to believe that the suspect poses a significant threat of death or serious physical injury to the officer or others.† (Justia.com, 2011) If an unarmed or visibly unarmed suspect makes a furtive movement, which is defined as a movement which shows the intent to attack the officer, or moves towards the officer instead of fleeing then the officer would be correct in employing deadly force. If however, the suspect is attempting to flee and is visibly unarmed and no violence has been committed at the time that the officer is aware of then the use of deadly force should be

Diversity management

Diversity management Evaluate how diversity management could have more impact within organisations? Diversity management is one of the most sensitive issues that an organisation has to go through. However, it can be rewarding if it is managed successfully. Diversity can cover many issues such as educational background, lifestyle, ethnicity, age, disability and gender. The purpose of this essay is to evaluate how diversity management could have more of an impact within organisations. Redman and Wilkinson (2001), implies that â€Å"managing diversity refers to the systematic and planned commitment on the part of organisation to recruit and retain employees from diverse demographic backgrounds.† The definition by Redman and Wilkinson suggests by planning, organisations will be able to create a good working environment for their employees from different backgrounds. In order to structure my essay I will begin by writing about the legislations that are involved in both diversity management and equal opportunity. Following up by writing about both equal opportunities and diversity management and why should different organisation adopts this approach Both diversity management and equal opportunity began as a result of various incidents. Discrimination was a common theme within organisations. The Sex Discrimination Act (1975) has had a huge impact in the reduction of discrimination amongst males and females. This legislation improved equality within the organisation especially for women. According to Torrington, et al. (2005) the participation of females in the workplace has increased from 56.8 per cent to 72 per cent (between 1971 to 2001). The legislation has also benefited males, allowing males to pursue â€Å"female jobs† i.e. midwife. Age discrimination can also be common in the work place especially during the later stage of the individuals career. Employees get forced to retire so other young workers can take their place. Young workers are also being discriminated against. A lot of employers believe younger workers are not as loyal as older workers. The Age Discrimination Act helps to minimise any prejudice. The Disability Act has also had a large impact within organisations. Torrington, et al. (2005) explains that disabled workers are less likely to be hired compared to their able-bodied counterpart. Disability discrimination is often overlooked by organisations. Some organisations believe it is not as important as other discrimination laws. Employment Equality (Religion or Belief) Regulations (2003) have also been put in place to help diminish discrimination against ethnic minority. This encourages equality in regards to recruitment. These legislations have allowed organisation to be more aware of discrimination. This was one of the key reasons for the increase in globalisation. Globalisation is the cause of diversity trends, this is clearly monitored by the increase in the â€Å"number of women and members of ethnic minority groups†¦Ã¢â‚¬ ¦.., Additionally, the age profile of the working population is changing,† (Redman and Wilkinson (2001)). This suggests that the age of employees working is on the increase. The quotation also suggests that organisations are opening up to women and members of ethnic minority. This indicates two points. The First point illustrates organisations are hiring male/ female, older/ young workers, disabled workers, and people from ethnic backgrounds due to the positive contribution that they can make into the organisation. The second point is organisations only hire male/ female, older/ young workers, disabled workers, and people from ethnic backgrounds due to the legislations. There are various legislations which influence organisations see appendix 1 for the legislations. Northumbria-police-authority (2009) Point one indicates the organisation believes in managing diversity. Diversity management is very important to businesses, managing it right or wrong could either lead to the success or failure of that business. Hence it has a major impact on the organisation. According to Armstrong (2006) â€Å"managing diversity is about ensuring all people maximize their potential and their contribution to the organization.† This suggests that by valuing diversity there will be a positive effect on the organisation as employees will bring their diverse knowledge into the organisation i.e. experience or fresh ideas. Redman and Wilkinson (2001) stated in their book ‘Contemporary Human Resource Management the general principles of managing diversity, that one of the principles (TO WHAT) was â€Å"given current shortage of labour effective use of diverse skills make good business sense†. This point was perfectly demonstrated during world war two when the men were out at war. Business had to hire female workers to take their place, in order for them to survive. This is a perfect example of diversity management in practice. WW2 is a prime example of how important it is to have a diverse workforce. Having a diverse work force is still important to this very day. It is important from a legal requirement as well as an objective (because it allows the business to move forward). There are various other reasons, why organisation incorporate diversity into the organisation as mentioned later. There are a range of advantages for diversity management. It enables good decision making within an organisation. Seba cultuurmanagement (2004) shares a similar view believing that â€Å"studies of diversity in organizations have shown that an exposure to diverse colleagues helps managers make better decisions†. IKEA can relate to this statement, IKEA is based all around the world, meaning the ideas which revolves in the organisation is the combination of different cultures. MJ, Browaeys and R, Price (2008) backs the statement of Seba, in which they mention a diverse organisation â€Å"as being more flexible and open to new ideas† by being more open to suggestions this will reflect on to the customers not only will they come up with new ideas but they will meet (Browaeys and R, Price (2008)) â€Å"customers needs† this will result in (Seba cultuurmanagement (2004)) â€Å"increase market share† due to â€Å"an increasingly diverse customer base.† The BBC is good at increasing a diverse customer base due to their diversity policy. Their scheme includes taking care of all types of workers i.e. disable workers, male/female, older/ young workers, disable worker, and a person from an ethnic background. All of this is achieved thanks to their diversity management. Out of all of the diversities, Disability is the most undermined diversity by organisations. However, the BBC are the opposite because the encourage and employee disabled workers. They also have TV programmes underlining the importance of disability. They have several experts in sign language, who assist (by helping people hard of hearing), on different programs such as the news. They also clearly layout their diversity message on the BBC website for all to see (BBC 2009). A journal article by C. W. Von Bergen et al, indicates another advantage of having diversity, within the article it declares that â€Å"researchers who have studied top management team diversity have found that they experienced more positive financial returns than more homogeneous teams†. This links to the advantage above. As the increase in the customer base increase so will the financial rewards. Further down the article C. W. Von Bergen et al also mentions â€Å"For tunes 1999 list of Americas 50 Best Companies for Asians, Blacks and Hispanics out per formed the SP 500 over three- and five-year periods† this clearly indicates how important diversity is to any organisation. Another important advantage of diversity management in organisations is attracting new talent as well as retaining current staff. One Workplace Equal Rights (2009) also agrees with diversity management â€Å"recruiting and retaining people from a wide talent base.† The wide talent base indicates the future consists of applicants from different ethnic backgrounds as well as disabled people. This is what diversity management is all about giving everyone a fair chance. The advantages clearly demonstrate why managing diversity is beneficial to any organisation. So applying managing diversity is crucial and there are various ways of managing diversity but the MOSAIC model is one of the most essential models. According to Redman, T and Wilkinson, A (2006), â€Å"Kandola and Fullerton (1994) suggested managing diversity must pervade the entire organisation if it is to be successful.† For this they came up with â€Å"MOSAIC vision†. CIPD (2009) gave a definition of MOSAIC in which they write about the meaning of MOSAIC and what each letter stands for See appendix 2. Firstly they illustrated that mosaic is a strategic tool to â€Å"map your own organisation against this vision and to identify priority areas for your diversity strategy.† They also mention ‘vision, suggesting a picture of a diverse organisation this statement is suggesting MOSAIC helps to look at the current strategy in diversity and helps it improve by construct ing a new policy. The other effective way of applying diversity is through training. Yawen Lai and Brian H. Kleiner (2001) defined â€Å"Diversity training is the process by which a work force is educated about cultural, socio-economic, racial and religious differences among employees and taught how to embrace those differences†. Tthis is similar to Kandola and Fullertons views on diversity management. The most important phrase on the statement is â€Å"process†. This is because employees are required to learn about diversity so diversity becomes one of the top priorities within the organisation. Diversity Training Group (2004) mentions â€Å"Top 10 Reasons Diversity Training Programs Succeed† . It is written by Mauricio Velà ¡squez, and gives 10 principles on effective diversity training. See appendix 3. Diversity management has a good impact on businesses, but it is in no use if the organisations dont conduct diversity in the right way. An example of this is if HR is not involved. In terms of business cases, it is very important that diversity management gets integrated with HR policies and practices. Many, if not all the advantages of diversity management will be successful if they get the backing of HR and the Senior Management. Redman and Wilkinson (2006) indicates â€Å"HR professionals have a wide range of tools available to them for changing the attitudes and the behaviour of their organisations employees.† Form this statement it clearly indicates that HR are influential in the running of the organisation. With the tools HR can attract and retain staff. This example specifically determines how important it is to have HR involved in thriving towards the success of diversity management. A prime example is IKEA. IKEA is a very successful organisation and diversity has played a vital role. IKEA they implemented diversity management during the opening of their first store in Belfast. They demonstrated it by (Business communities 2009) â€Å"the fact that it provides translation for non-UK applicants, both at the recruitment stage and during the induction process†. These polices also helped future employees to reach full potential. Due to HR the policies were successful as HR were involved during the recruitment process. Furthermore IKEA (Business communities 2009) â€Å"continuously promotes cultural diversity through culture and development days.† This process consists of the staff being made aware of the companys diversities ethos during induction. For managers and supervisors there are (Business communities 2009) â€Å" mandatory workshops†. This leads to the staff rating the fairness of their managers, and these ratings are included in the salary review. This process shows IKEAs intentions on diversity management. The Belfast IKEA store was a success it attracted (Business communities 2009) â€Å"3,000 applications were received for 400 jobs†. The diversity work had also dropped the turnover to a low â€Å"9%.† Also, â€Å"external bodies such as Disability Action, Princes Trust and local employability groups† recognised there polices. IKEA also did an advertising campaign on diversity (advertolog 2009) which they called â€Å"long live Diversity†. The number of applicants indicates that if diversity management is done in a right way the organisations reputation will increase resulting in attracting new employees, retaining staff and finally bringing in new customers. Earlier I mentioned two points. The second point relates to Equal Opportunities. Kirton and Greene (2000) said â€Å"equal opportunity exists when all individuals are enabled freely and equally to compete for social category.† Further on Kirton and Greene 2000 mention that people should have the same treatment within the organisation regardless of the individuals social category i.e. gender, disability, age and etc. Equal opportunities can be seen as a free market where everyone is allowed to apply for any jobs and not be discriminated against. A prime example is Torrington, et al. 2005. They say that a selection procedure will not be influenced by stereotypical characteristics. They say â€Å"women will not be prepared to work away from home due to family commitments, that a person with disability will have more time off sick† these are not proven facts but due to these stereotypes many disable workers and women will be discriminated against. This is the reason why equal opportunities legislations are in action. Appendix 1.Northumbria-police-authority (2009) these laws are there to provide a â€Å"level playing field† (Torrington, et al. 2005) for all workers. The legislation ensures that all workers are not at a disadvantage and gives importance to those workers in order for them to compete with other applicants, i.e. â€Å"British Rail has given members of minority groups extra coaching and practice in a selection test for train drivers, as testing taking was not part of their culture† (Torrington, et al. (2005). Equal opportunities will also apply during job advertisement. Organisation will need to be careful of what they write on the job advert, according to an article written by business wings (2009) also agrees with my statement for example â€Å"Avoid stating any requirements that are not directly related to the job such as the candidates marital status or race†. It is very important for the or ganisation not to break the law as there could be hefty penalties as well as the decimation of their reputation. There are various positive to equal opportunities in terms of business case. Redman, T and Wilkinson, A (2006) mentions â€Å"in 1995 the equal opportunities commission launched a campaign to highlight business case for equal opportunities†. This helps link the equal opportunity to organisational goals. One of the positives of equal opportunities is that it brings out the best of HR. It also brings in new business ideas with more diverse work force there would be more ideas generated within the organisation. Kandola and Fullerton (1998) wrote in their book that equal opportunity has changed in recent years. They say â€Å"There is more concern for the business case†. The reason being, organisation look to enhance the profits and reputation, and equal opportunities is one of the important polices that would achieve this. Above is one of the various reasons why businesses integrate equal opportunity and only follow the minimum legal frame work. The foundations of organisations follow the minimum legal frame work that is needed. This is due to the fact that organisations are not simply big enough and do not acquire the resource to carry out diversity management. HR department is one of the vital resources that small organisation lack, HR is a very important asset to an organisation but it is also very costly and the reason why small organisations do not have HR. Another reason why businesses only follow the minimum requirement is the lack the support from Senior Management. For example, a line manger may like to bring in diversity management into the organisation, but due to saving cost or other reasons the Senior Management will reject that proposal. One of the key reasons why organisations follow the minimum obligation is due to the disadvantages of conducting diversity management. One of the disadvantages is means of communicating (CIPD 2009); with different cultures working together they all have different ways opinions, therefore creating conflict within the organisation. It is also difficult when one of the workers has a disability i.e. difficult to speak, this will slow the work down which results in low morale in the workplace. In conclusion, after writing about the diversity management I have realised that it is very important to peruse with diversity management as there are great rewards to be achieved both for the employee and the organisation. Core legal obligation is not the way forward. It is a short term answer to a long term issue. Even with disadvantages of diversity management in mind, the positive outweighs the negative. For example IBM started off by applying minimum obligation in their â€Å"Diversity 1.0† scheme they followed this up by â€Å"diversity 2.0† and now â€Å"Diversity 3.0† (IBM 2009). Then they realised that they could obtain creativity and harmony through diversity management. They believed that a diverse work force can be an advantage â€Å"for innovation†. They also mention â€Å"Our diversity is a competitive advantage and consciously building diverse teams helps us drive the best results for our clients.† (IBM 2009). IBM is one of many examp les of organisations moving towards diversity management hence realising how diversity management impact on the organisation. It is therefore important for all organisations to adopt diversity in order to stay competitive HTTP://WWW.DIVERSITYATWORK.NET/EN/EN_IMPLEMENTING.HTM http://edis.ifas.ufl.edu/HR022

Lady Macbeth Seduces Macbeth In Many Ways Essay -- essays research pap

Lady Macbeth does everything in her power to seduce Macbeth. She comforts him and gives him strength after Duncans murder. She emasculates and belittles him to convince him to commit the murder. She covertly seduces Macbeth by her suicide. When Macbeth finds out about her death he loses all hope and gives up on life. After Macbeth's deed was done, he would of succumb to his guilt if it weren't for lady Macbeth. His paranoia started to get the best of him. Macbeth thinks that someone has heard him commit the crime, " I have done the deed, didst thou not hear a noise? " (Macbeth, II, II, 15) The good Lady tells Macbeth she heard nothing, she is comforting him by reassuring him that no one heard a thing, " I heard the owl scream and the crickets cry. Did not you speak? " (Macbeth, II, II, 16 - 17) Macbeth feels guilt and pity for what he has done to Duncan, he looks down on himself. [looking at his hands] " This is a sorry sight. " (Macbeth, II, II, 22). Lady Macbeth comes through and shows Macbeth comfort and strength before he loses it and does something irrational. When Macbeth returns to his chamber after killing Duncan and Lady Macbeth learns that he didn't carry out the end of the plan, the reader sees a moment of panic in Lady Macbeth. She quickly regains he r composure, though, and decides that she must complete the plan herself. She says to Macbeth, "Give me the daggers. The sleeping and the dead are but ...

How Does Wilfred Owen Provoke Sympathy for His Protagonist in ‘Disabled Essay

Owen provokes sympathy for his main character throughout the book and in every stanza. In the opening stanza Owen connects the reader with the main character, by making the reader feel sorry for him. The boy feels as though he is ‘waiting for dark,’ this makes the reader feel pity on the boy, as he knows he is waiting to die. By connecting the reader with the protagonist they feel more sympathy for him and they feel upset when he feels lonely and isolated. ‘ Voices of play and pleasure,’ tells the reader that the boys in the park are happy and the boy in the wheeled chair probably used to be like that, but now he is in a wheeled chair he will never be able to get his youth back. This makes the reader feel sympathy as the main character will never be able to be a child again and experience his youth. Owen shows the reader that ‘sleep had mothered them from him,’ he said this to show the reader that he is some sort of monster and children need to be saved from him. This provokes sympathy in the protagonist because he is unable to be seen normally by people now he is in a wheeled chair. In the second stanza sympathy is created in a different way to the first, in the second stanza, Owen tells the reader about what the boy in the wheeled chair misses. The boy misses girls, he think he will never feel love or intimacy again, ‘never feel again how slim girls’ waists are,’ Owen uses never as a hyperbole to exaggerate the boys sadness about never being able to be with a girl. The boy feels all the ‘girls glanced lovelier,’ as he can’t have any of the girls anymore he feels as though they are all beautiful and he wants to be with all of them. ‘All of them touch him like some queer disease,’ Owen uses â€Å"all of them,† a hyperbole, is used to show that the soldier feels alienated from everyone, specifically women, who his disability repels. This makes the reader feel sorry for him because he will never be treated normally and people don’t really want to touch him especially girls, as they are the ones he m isses the most. The third stanza creates sympathy by using mainly the boy’s youth and innocence. Owen does this so the reader feels connected with the boy; people feel more sympathy for someone who lives a short life than for someone who dies living a full life. Owen says that last year he was ‘younger than his youth,’ but ‘now he is old,’ this shows sympathy for the boy as he lost his youth and life in one year. The reader feels sorry for the boy also as ‘he’s lost his colour very far from here,’ the lack of detail about his location shows the reader that the boy may not have known where he was. ‘Poured it down shell-holes till the veins ran dry,’ Owen uses this metaphor to convey the boy pouring his life a way and he uses imagery so the reader can picture in their heads what he must have gone through and feel pity towards him. When Owen says that ‘one time he liked a blood smear down his leg,’ and he was ‘carried shoulder high,’ the boy used to like being a hero and impressing people such as his teammates and girls. This makes the reader feel sorry for the boy as no-one thinks he is a hero anymore and that was probably the reason he joined, to become a hero. Owen says that the boy had ‘drunk a peg,’ and ‘thought he’d better join,’ which provokes sympathy by showing the reader he only joined due to of peer pressure and he probably felt if he hadn’t joined he would be letting the football team down. Owen provokes sympathy in the fourth stanza by portraying to the reader that it was not the protagonist’s fault that he has the injuries. Owen firstly blames women for it, he says the boy joined the army ‘to please his Meg,’ Owen uses Meg to be symbolic of all women as Meg was a common name in those times. The fact that he joined for a girl makes the reader feel sorry fort the boy because he did not know what he was getting into and he was just trying to be a hero to impress girls, but by the end girls didn’t even notice him. Owen shows anger towards women and says ‘to please the giddy jilts,’ which was very insulting to women and he basically said they are just there to be impressed by men.

Anchoring Matter for Fresher Party

Meaning of Bank It is generally said that the word â€Å"BANK† has been originated in Italy. In the middle of 12th century there was a great financial crisis in Italy due to war. To meet the war expenses, the government of that period imposed a forced subscribed loan on citizens of the country at the interest of 5% per annum. Such loans were known as Compara, Mintuo etc. The most common name was Monte. In Germany the word Monte was named as Bank or Banke. According to some writers, the word Bank has been derived from the word Banke. It is also said that the word Bank has been derived from the word Banco which means a banch.The Jews money lenders in Italy used to transact their business sitting on banches at different market places. When any of them used to feel to meet his obligations, his banco or banch would be broken by the angry creditors. The word Bankrupt seems to be originated from broken banco. Since, the banking system has been originated from money lending business, it is rightly argued that the word Bank has been originated from the world banco. Today the word bank is used as a comprehensive term for a number institutions carrying on certain kinds of financial business.In practice, the work Bank means which borrows money from one class of people and again lends money to another class of people for interest or profit. Definition of a Bank Oxford Dictionary defines a bank as â€Å"an establishment for custody of money, which it pays out on customer's order. † Definition of banking In general terms, the business activity of accepting and safeguarding money owned by other individuals and entities, and then lending out this money in order to earn a profit. Read more: http://www. investorwords. com/5413/banking. html#ixzz27ewFzo5g Characteristics / Features of a Bank v 1. Dealing in MoneyBank is a financial institution which deals with other people's money i. e. money given by depositors. 2. Individual / Firm / Company A bank may be a person, firm or a company. A banking company means a company which is in the business of banking. 3. Acceptance of Deposit A bank accepts money from the people in the form of deposits which are usually repayable on demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It also acts as a custodian of funds of its customers. 4. Giving Advances A bank lends out money in the form of loans to those who require it for different purposes. . Payment and Withdrawal A bank provides easy payment and withdrawal facility to its customers in the form of cheques and drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts, etc. 6. Agency and Utility Services A bank provides various banking facilities to its customers. They include general utility services and agency services. 7. Profit and Service Orientation A bank is a profit seeking institution having service oriented approach. 8. Ever increasing Functions Banking is an evo lutionary concept. There is continuous expansion and diversification as regards he functions, services and activities of a bank. 9. Connecting Link A bank acts as a connecting link between borrowers and lenders of money. Banks collect money from those who have surplus money and give the same to those who are in need of money. 10. Banking Business A bank's main activity should be to do business of banking which should not be subsidiary to any other business. 11. Name Identity A bank should always add the word â€Å"bank† to its name to enable people to know that it is a bank and that it is dealing in money. Type 1. Saving Banks Saving banks are established to create saving habit among the people.These banks are helpful for salaried people and low income groups. The deposits collected from customers are invested in bonds, securities, etc. At present most of the commercial banks carry the functions of savings banks. Postal department also performs the functions of saving bank. T ype 2. Commercial Banks Commercial banks are established with an objective to help businessmen. These banks collect money from general public and give short-term loans to businessmen by way of cash credits, overdrafts, etc. Commercial banks provide various services like collecting cheques, bill of xchange, remittance money from one place to another place. In India, commercial banks are established under Companies Act, 1956. In 1969, 14 commercial banks were nationalised by Government of India. The policies regarding deposits, loans, rate of interest, etc. of these banks are controlled by the Central Bank. Type 3. Industrial Banks / Development Banks Industrial / Development banks collect cash by issuing shares & debentures and providing long-term loans to industries. The main objective of these banks is to provide long-term loans for expansion and modernisation of industries.In India such banks are established on a large scale after independence. They are Industrial Finance Corporat ion of India (IFCI), Industrial Credit and Investment Corporation of India (ICICI) and Industrial Development Bank of India (IDBI). Type 4. Land Mortgage / Land Development Banks Land Mortgage or Land Development banks are also known as Agricultural Banks because these are formed to finance agricultural sector. They also help in land development. In India, Government has come forward to assist these banks. The Government has guaranteed the debentures issued by such banks.There is a great risk involved in the financing of agriculture and generally commercial banks do not take much interest in financing agricultural sector. Type 5. Indigenous Banks Indigenous banks means Money Lenders and Sahukars. They collect deposits from general public and grant loans to the needy persons out of their own funds as well as from deposits. These indigenous banks are popular in villages and small towns. They perform combined functions of trading and banking activities. Certain well-known indian commun ities like Marwaries and Multani even today run specialised indigenous banks.Type 6. Central / Federal / National Bank Every country of the world has a central bank. In India, Reserve Bank of India, in U. S. A, Federal Reserve and in U. K, Bank of England. These central banks are the bankers of the other banks. They provide specialised functions i. e. issue of paper currency, working as bankers of government, supervising and controlling foreign exchange. A central bank is a non-profit making institution. It does not deal with the public but it deals with other banks. The principal responsibility of Central Bank is thorough control on currency of a country. Type 7.Co-operative Banks In India, Co-operative banks are registered under the Co-operative Societies Act, 1912. They generally give credit facilities to small farmers, salaried employees, small-scale industries, etc. Co-operative Banks are available in rural as well as in urban areas. The functions of these banks are just simila r to commercial banks. Type 8. Exchange Banks Hong Kong Bank, Bank of Tokyo, Bank of America are the examples of Foreign Banks working in India. These banks are mainly concerned with financing foreign trade. Following are the various functions of Exchange Banks :- . Remitting money from one country to another country, 2. Discounting of foreign bills, 3. Buying and Selling Gold and Silver, and 4. Helping Import and Export Trade. Type 9. Consumers Banks Consumers bank is a new addition to the existing type of banks. Such banks are usually found only in advanced countries like U. S. A. and Germany. The main objective of this bank is to give loans to consumers for purchase of the durables like Motor car, television set, washing machine, furniture, etc. The consumers have to repay the loans in easy installments. Definition of ‘Central Bank'The entity responsible for overseeing the monetary system for a nation (or group of nations). Central banks have a wide range of responsibilitie s, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment. Central banks also generally issue currency, function as the bank of the government, regulate the credit system, oversee commercial banks, manage exchange reserves and act as a lender of last resort. Investopedia explains ‘Central Bank' The central banking system in the U. S. is known as the Federal Reserve System commonly known as â€Å"the Fed†), which is composed of 12 regional Federal Reserve Banks located in major cities throughout the country. The main tasks of the Federal Reserve are to supervise and regulate banks, implement monetary policy by buying and selling U. S. Treasury bonds and steer interest rates. Ben Bernanke currently serves as the chairman of the Board of Governors of the Federal Reserve. FUNCTIONS OF CENTRAL BANK M. H. Do-Kock has explained the following seven functions of a central bank in his book â€Å"Central Bankin g† which economists have generally accepted. 1. Monopoly of note-issue. 2.Banker, agent and adviser to the government. 3. Custodian of cash reserves of commercial banks. 4. Custodian of nation’s reserves of international currencies. 5. Lender of the last resort 6. Clearing house function 7. Credit control Besides the aforesaid seven functions there are some other functions also, namely: (i) Collection of data. (ii) Role of central bank in developing countries. (iii) Central bank and industrial and agricultural development. (iv) International financial institutions. 1. Monopoly of Note-Issue: Note-issue primarily is the main function of a central bank in every country.These days, in all the countries where there is a central bank generally it has got the monopoly or the sole right of note-issue. In the beginning this was not the function of Central Bank but gradually all the central banks have acquired this function. First of all, Central Bank of England got the right of note-issue in the year 1844. In actual practice, upto the beginning of twentieth century, generally central banks were recognized as the banks of note-issue. In India, R. B. I. , the central bank of India has got the right of note-issue. 2. Banker, Agent & Adviser to the Government:As banker to the government, central bank provides all those services and facilities to the government which public gets from the ordinary banks. It operates the accounts of the public enterprises. It manages government departmental undertakings and government funds and when there is a need gives loans to the government. It looks after the management of public debt. It accepts the payment of taxes from the public on behalf of the government and makes payment for the cheques issued by the government. It also undertakes transactions relating to foreign currencies on behalf of the government. 3.Custodian of Cash Reserves of Commercial Bank: Central bank is the bank of banks. This signifies that it has the s ame relationship with the commercial banks in the country which they have with their customers. It provides security to their cash reserves, gives them loan at the times of need, gives them advice on financial and economic matters and works as clearing house among various member banks. A definite percentage of deposits of commercial banks are kept as reserve with the central bank. This leads to centralisation of cash reserve and facilitates working of credit control. These funds re of great significance during the time of emergency. 4. Custodian of Nation's Reserves of International Currencies: Central bank is the custodian of the foreign currency obtained from various countries. This has become an important function of central bank, these days, because with its help it can stabilize the external value of the currency. This function has become highly important after the World Depression of 1929 and the establishment of the International Monetary Fund. 5. Lender of the Last Resort: C entral bank works as lender of the last resort for commercial banks because in the times of need t provides them financial assistance and accommodation. Whenever a commercial bank faces financial crisis, central bank as lender of the last resort comes to its rescue by advancing loans and the bank is saved from being failed. Central bank helps commercial banks by discounting their bills and securities. 6. Clearing House Function: All the commercial banks have their accounts with the central bank. Therefore, central bank settles the mutual transactions of banks and thus saves all banks contacting each other individually for setting their individual transactions, in this way; the unnecessary cash ransactions between individual banks are avoided. 7. Credit Control: This is a very important function. These days, the most important function of central bank is to control the volume of credit for bringing about stability in the general price level and accomplishing various other socio-econo mic objectives. There are number of methods which a central bank may use for controlling the volume of credit such as bank rate, open market operations, change in reserve ratio and various selective controls. These methods have been discussed in detail in the next question.