1. What types of transport are used in commerce? Which factors influence the choice of transport?

The four primary modes of commerce are shipments by truck, ship, train and plane. They are also known as road, maritime, rail and air shipments. Truck transportation is ideal for industries that require quick, small shipments directly to a business, warehouse or consumer’s door and is equipped to handle possible delays. Whenever your business requires transport for heavy, cumbersome loads — or country to country shipping — ship transportation is usually the way to go. Rail transport is ideal for companies who require fast, scheduled ground freight. Air transport is accessible across most of the world and is ideal for shipments that need to be moved quickly across long distances, including overseas. Air transportation also has a vast scope compared to rail and ship freight, as it is an ever-expanding industry with several thousand airports and landing strips in operation across the globe.

2. Speak about transport by land, its types, advantages and disadvantages.

Land transportation is highly utilized by people in the world because convenience and ease of access. Almost all areas on the globe with human settlements have access to at least any road no matter what the condition the road may have. The distance that can be covered using cars cost less amount of money due to the fare or pushing the car in case it absolutely was a private car. Ease in road transport comes in where the person can decide on any time during the day to start his voyage. This is mostly in the case of personal cars or engine bicycles. However,  land transport creates a lot of noise coming from hooting of the cars and it is less safe while people can be hi-jacked and robbed during transportation. It can lead to congestion in populated towns hence slow.

3. Speak about transport by water, its types, advantages and disadvantages.

Water transport is defined as the process of moving people, freight and mails by barge, boat, ship, or sailboat over a sea, ocean, lake, canal, and river or by other types of water transportation. Water transportation is the cheapest means of transporting bulky and perishable goods over long distances. This mode of transportation is primarily used for the carriage of people, perishable and-perishable goods which are generally referred to as cargo. Examples of water transport vehicles are motorboat, cargo ship, speedboat, sailboat, yacht, ferry, canoe, raft boat, battleship, cruise ship.

As for advantages of water transport, it involves a low running cost which makes it the cheapest form of transport system over long distances. Large vessels especially run economically since fuel costs can be spread over greater quantities. Distance does not add greatly to total transport costs. It has the capacity of conveying heavy and bulky cargoes.

As for disadvantages of water transport, this mode of transportation is very slow compared to road transport hence; it is unsuitable for perishable goods and urgent cargoes. There may be delays at locks and docks, while navigation may be impeded majorly due to poor weather conditions. It is unsuitable for short distance journeys since transshipment is both costly and time-consuming. Canals are costly to build, maintain, and dredge, and also follows inflexible and circuitous routes.

4. Speak about transport by air, its advantages and disadvantages. Which kinds of goods are often transported by air?

Air transport is the most recent mode of transport.  It has no physical barriers as in the case of other mode of transport. Political boundaries are also immaterial although it has to observe the requirements of the International Law. The supreme advantage of air transport lies in its quickness. But the cost of its operation is very high and thus it is suitable for only rich passengers, mails and light and costly cargo. The supreme advantage of air transport is its high speed. It is the fastest mode of transport and thus it is the most suitable mean where time is an important factor. It provides a regular, comfortable, efficient and quick service. It is the costliest means of transport. The fares of air transport are so high that it is beyond the reach of the common man. Its carrying capacity is very small and hence it is not suitable to carry cheap and bulky goods. The chances of breakdowns and accidents are high as compared to other modes of transport. Hence, it involves comparatively greater risk.

5. Speak about freight forwarding. Which services may be provided to companies by a freight forwarder? Why do companies use freight forwarders?

Freight forwarding is the process of getting a shipment of goods from point A to point B. This can involve the use of one or more carriers and shipping methods, such as rail, air, ocean, and road. A freight forwarder arranges the whole shipment process for you, from start to finish. This includes planning the journey, contracting shipping carriers, and complying with local laws. Using a freight forwarder to complete this process brings significant benefits. Freight forwarders are experts in their field, and know the fastest, most reliable, and cheapest method to forward your goods at any point in the year. The international movement of goods requires strict adherence to different rules and regulations. Freight forwarders also have an international network, working with numerous different carriers and storage providers. This helps them find you the most reliable solution at the best price, as well as other eCommerce businesses who can help you to achieve (and save on) full shipping containers.

6. Speak about the most common means of transport for moving goods by road, rail, sea and air. Which factors influence the choice of transport? Give examples.

The modes of transport include various types of factors or methods to transfer the goods or product from one place to another place. The modes are: roadways transportation, railways transportation, water transportation, air transportation, pipelines transportation. The most common types of transport by sea are the following:

Bulk — used for free-flowingorganic cargoes that are not adapted to be placed in containers (these may be minerals, mineral fertilizers, grains, chernozems, sugar and other dry substances). Container transportation of cargo withuse of external packaging, which ensures its safety and protection from external influences (a significant advantage is the possibility of saving on packaging, as well as leasing of storage facilities, because the container can act as a temporary storage). Sea ​​freight provides the customer the opportunity to select a ship that meets the requirements for the carriage of a particular type of cargo. The most common means of transports for moving goods by road are cars and vehicles. The most common means of transport for moving goods by rail are shunting trails, pilots, point loads, unit trains.

7. Speak about intermodalism in transport. Why is it so popular nowadays? What are its advantages and disadvantages.

Intermodal trucking is the transportation of intermodal containers from railyards and ship ports to their final delivery destination. International shipping containers are mainly 20ft and 40ft in length in order to accommodate as many containers as possible on a vessel during cargo transport. Therefore, cargo or freight from a dry van must be trans-loaded onto an international shipping container before it can be sent for transport and vice versa for inbound shipments.

Intermodal trucking reduces long-haul driver capacity requirements
Transporting containers by rail over long distances reduces the costs and resources needed when compared to road-transport. For example, road transport has capacity requirements in the form of long-haul drivers.

Double Stacked Railcars increase shipment volumes
Double stack railcars are railcars with one intermodal container placed atop another. This has led to an increase in shipping capability of utilizing the vertical space on the railcar.

8. Why packing is important while transporting goods? Which factors influence the choice of packing? Give examples.

Packaging means the wrapping or bottling of products to make them safe from damages during transportation and storage. It keeps a product safe and marketable and helps in identifying, describing, and promoting the product. In short, packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells, in many countries it is fully integrated into government, business, and institutional, industrial, and personal use. Packing means putting all the packages in a big box, container, chest, crate etc. for the purposes of storage, transportation, handling etc. Moreover the functions of packing and packaging, in the present context have gone beyond the basic expectations of protection of the product. Thus, a package is a container or a wrapper of a product in which it is wrapped of packed so that it may safely reach the consumers without losing its utility.

 

9. Why labelling is important while transporting goods? Which factors influence the choice of labelling? Give examples.

Whenever you manufacture a product, you want to communicate the value of the product to the customers. One of the ways to do that is to use product labelling. Product labelling has become a means of communication between the brand and the consumer. Product labelling has very important information which is printed on the product packaging. Product labelling is a part of the packaging of a product. These written labels on the package cover important information which needs to be communicated to a customer. Product labelling is different from packaging. A product packaging might have the brand colours, the logo and the material as well as the shape of the package etc.

Example – A food product like Maggi noodles might have the ingredients of the product as well as the instructions on how to make the product written and illustrated on the package. These instructions are nothing else but product labelling by the brand.

• Speak about environmental impact of air transport. How does it affect human health and nature? What measures are taken to improve the situation?

Aircraft noise pollution disrupts sleep, children’s education and could increase cardiovascular risk. Airports can generate water pollution due to their extensive handling of jet fuel and deicing chemicals if not contained, contaminating nearby water bodies. Aviation activities emit ozone and ultrafine particles, both of which are health hazards. Piston engines used in general aviation burn Avgas, releasing toxic lead. Aircraft engines combust fuel to emit carbon dioxide, water vapor, nitrogen oxides, carbon monoxide, and soot. Contrails, water vapor, released by airplanes forming condensation trails, trap heat that would otherwise be released from the earth. This brings about global warming.

As a solution to environmental degradation as a result of air travel, the regulation of the industry is needed. International Civil Authority (ICAO) in 2016 proposed the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). If the limit is exceeded, then airlines will buy offsets from other sectors. To deal with the problem of climate impact by the aviation industry, technology can be used in the design and systems of planes to make them more efficient. A breakthrough in the use of another type of fuel that is greener, like biofuels, hydrogen, solar panels, and batteries, could save the world from the degradation of the environment by aircraft engines running on kerosene.

• Speak about environmental impact of road transport. How does it affect human health and nature? What measures are taken to improve the situation?

Transport especially road transport has a strong environmental impact and a variety of measures can be taken to reduce environmental damage by road transport. No doubt, transport is essential for economic and human development. The environmental effects of transport differ by mode. Non-motorized transport generally does not harm the environment. The environmental effect of rail transport comes from the use of coal and the use of diesel oil in diesel locomotives.

Inland water way transport is fuel-efficient and has relatively little environmental impact. In oceans, major damages occur from tanker accidents. Shipping can pollute coastal waters. Aviation causes local air and noise pollution at ground level and gaseous emissions that can deplete the ozone layer. With economic growth and social development bridging these disparities, coupled with the pressure of rising popula­tion, power consumption in the country will rise several folds in the form of water and air pollution, soil erosion, deforestation, loss of biological diversity, etc.

• Speak about environmental impact of rail transport. How does it affect human health and nature? What measures are taken to improve the situation?

The main air pollutants are emissions of exhaust gases from diesel locomotives. They are an aerosol consisting of droplets of water, fuel, oil, soot, oxides of carbon, nitrogen, sulfur and other substances, many of which have carcinogenic, mutagenic and teratogenic effects on living organisms. Also, harmful substances enter the atmosphere during the implementation of various technological processes at enterprises. A serious cause of pollution of the atmosphere, and through it other environments with harmful substances, is the spraying of bulk cargo during their loading, unloading, transportation.

Annually, up to 200 m3 of wastewater containing pathogenic microorganisms is poured out of passenger cars for each kilometer of track, and up to 12 tons of dry waste is thrown away. The special structure of the railway line often leads to the development of water erosion, especially to the formation and growth of ravines. Also, harmful substances enter the environment not only from mobile sources, but also from such stationary ones as locomotive and carriage depots, washing and steaming stations, sleepers. An important problem is the increasing noise level from objects of the railway transport infrastructure, especially in settlements where the railway directly borders on residential buildings.

• Speak about environmental impact of sea transport. How does it affect human health and nature? What measures are taken to improve the situation?

Just like other industries, the shipping industry also has several detrimental effects on the environment. Being associated with water, most of these effects cause damage to marine flora and fauna and that indirectly affects humans. Noise produced by ships often travels long distances and interferes with the normal behavior of marine species like whales that rely on sound for their activities. Oil spills into the ocean have devastating effects on marine life. Oil remains on the surface of the water blocking the diffusion of oxygen into the water. This kills numerous marine life. Human wastes loaded with harmful microorganisms enter the waters through the sewage discharged by the ships into the water. Whales, manatees, and other large marine fauna are at risk of collisions with ships.

• Compare the environmental impact of different means of freight traffic.

Environmental regulations in developed countries have reduced the individual vehicles emission; however, this has been offset by an increase in the number of vehicles, and more use of each vehicle. Some pathways to reduce the carbon emissions of road vehicles considerably have been studied. Energy use and emissions vary largely between modes, causing environmentalists to call for a transition from air and road to rail and human-powered transport, and increase transport electrification and energy efficiency.

Other environmental impacts of transport systems include traffic congestion and automobile-oriented urban sprawl, which can consume natural habitat and agricultural lands. By reducing transportation emissions globally, it is predicted that there will be significant positive effects on Earth’s air quality, acid rain, smog and climate change.

The health impact of transport emissions is also of concern. A recent survey of the studies on the effect of traffic emissions on pregnancy outcomes has linked exposure to emissions to adverse effects on gestational duration and possibly also intrauterine growth.

• Speak about different types of transport documents. What kind of information is indicated in them?

The Bill of Lading (B/L) is a contract for maritime carriage that specifies the taking of responsibility, or the loading, of goods by the carrier. It contains detailed information on the goods, the boat and the port of destination.

The Sea Waybill documents only the carriage contract signed by the shipper and the maritime transport line and represents the receipt of the goods. It contains detailed information on the port of embarkation, the port of destination, the name of the ship, the name of the shipper, the name and the address of the recipient.

The CMR consignment note certifies the carrier’s taking of responsibility for the merchandise and shipping upon signature by the carrier. It documents a carriage contract of the goods that exists independently of them. It must be established in the form specified by the «Convention on the Contract for the International Carriage of Goods by Road» (CMR).

The Rail Consignment Note (CIM) or International Consignment Note is a document governed by the 1980 Convention concerning International Carriage by Rail (COTIF-CIM). It is issued by the carrier and is considered as the rail carriage contract. This document is non-transferable and is not requested upon arrival.

• Speak about international transport documents. What kind of information do they contain?

The most commonly used document by drivers, operators and forwarders, the CMR note, is an international consignment note which is specified under the Convention for the Contract of the International Carriage of Goods by Road 1956 (the CMR Convention). Signed in Geneva on 19^th May 1956, it is embodied into UK law by the Carriage of Goods by Road Act 1965 (as amended by the Carriage by Air and Road Act 1979). A CMR form is a 4 part document comprising of a: sender’s copy (red), consignee’s copy (blue), carrier’s copy (green), administration copy (white with black border).

T1 and T2 documents are transit documents. There are 2 systems that allow the movement of goods within the European wide system, these are the Community Transit System (CT) ad the New Computerised Transit System (NCTS).

The ATA Carnet is an international customs document that is presented to customs each time goods enter or leave a country. It allows goods to be temporarily imported without payment of customs charges for up to one year and can cover one or more different types of goods.

• What is the purpose of invoices? What kind of information do they contain?

An invoice is a time-stamped commercial document that itemizes and records a transaction between a buyer and a seller. If goods or services were purchased on credit, the invoice usually specifies the terms of the deal and provides information on the available methods of payment. Payment terms may be outlined on the invoice, as well as the information relating to any discounts, early payment details or finance charges assessed for late payments. It also presents the unit cost of an item, total units purchased, freight, handling, shipping, and associated tax charges, and it outlines the total amount owed.

Companies may opt to simply send a month-end statement as the invoice for all outstanding transactions. If this is the case, the statement must indicate that no subsequent invoices will be sent. Currently, computer-generated invoices are quite common. They can be printed to paper on demand or sent by email to the parties of a transaction. Electronic records also allow for easier searching and sorting of particular transactions or specific dates.

• What is the purpose of insurance? What kind of things is it possible to insure? Give examples of different types of business insurance.

The fundamental purpose of insurance is to spread out the risk of individual investments among many parties to reduce the risk to any individual member of the pool in the event that an investment fails. The forms of insurance most familiar to most people are health, property and life insurance. Insurance policies are used to hedge against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party. There many types of insurance policies. Life, health, homeowners, and auto are the most common forms of insurance.

The different types of business insurance are —

• Public liability insurance
• Employers’ liability insurance
• Product liability insurance
• Professional indemnity insurance
• Business interruption insurance
• Business property coverage
• Key-man insurance
• Credit risk insurance
• Cyber insurance

 Speak about Lloyd’s of London, its history, current position on the market, role and structure.

In February 1688, Edward Lloyd’s Coffee House in Tower Street was referred to for the very first time in the London Gazette. The article declared a reward for five stolen watches and encouraged anyone with information to contact Lloyd at his shop in the City.  It was an early sign of insurance, or at least reward.

Lloyd’s is the world’s leading, specialist insurance market home to 47 managing agents and 72 syndicates. Lloyd’s is not an insurance company but a society of members, both corporate and individual, who underwrite in syndicates on the behalf of professional underwriters accepting risk.

The members of Lloyd’s sell or underwrite insurance. The members provide the financial backing, known as capital, which acts as security for Lloyd’s policies to help ensure that claims are paid. Capital comes from a mixture of financial institutions, major insurance businesses and individuals.  These businesses or individuals are sometimes called ‘Names’. A member or group of members form a syndicate.  A syndicate is a group of people or a firm who are authorized to undertake a task; they work together to reduce the risk involved with the undertaking. A syndicate’s underwriting and other activities are managed on behalf of its members by a managing agent.

Many ideas would never be possible without a way to reduce risk.  We all know risk is unable to be eliminated; however, it can be managed and reduced.  There are many insurance companies who price things like cars, houses and medical expenses which can be relatively easy to price with set methods and manuals.  Lloyd’s specializes in those risks that are hard to price, large and difficult to understand.

• What is an order? What types of orders do you know? What kind of information do they contain?

An order consists of instructions to a broker or brokerage firm to purchase or sell a security on an investor’s behalf. An order is the fundamental trading unit of a securities market. Orders are typically placed over the phone or online through a trading platform, although orders may increasingly be placed through automated trading systems and algorithms. Orders broadly fall into different categories which allow investors to place restrictions on their orders affecting the price and time at which the order can be executed. These conditional order instructions can dictate a particular price level (limit) at which the order must be executed, how long the order can remain in force, or whether an order gets triggered or canceled based on another order, among others.

Here are some the basic order types:

• A market order instructs the brokerage to complete the order at the next available price.
• A limit buy order instructs the brokerage to buy a security at or below a specified price.
• A limit sell order instructs the broker to sell the asset at a price which is above the current price.
• A sell stop order instructs the brokerage to sell if an asset reaches a specified price below the current price.
• A buy stop order instructs the broker to buy an asset when it reaches a specified price above the current price.
• A day order must be executed during the same trading day that the order is placed.
• Good till canceled (GTC) orders remain in effect until they are filled or canceled.

• Speak about the principal aim of banking and groups of banking categories.

Banking is the business conducted or services offered by a bank. In a broad sense, banking is an industry that handles cash, credit, and other financial transactions. Banking can be of various types. The common 5 types of banking in the USA are; group banking, chain banking, branch banking, unit banking, and mixed banking. But there are many other types of banking systems found and practices in the world. In the real world of global banking, there are 12 types of banking systems available;

1. Branch banking,
2. Unit banking,
3. Chain banking,
4. Group banking,
5. Mixed banking.
6. Central Bank.
7. Commercial Banks.
8. Industrial Banks.
9. Exchange Banks.

• Land Mortgage or Development Banks.
• Co-operative Banks.
• Consumers Banks.

The kinds of institutions that exist in the finance industry run the gamut from central banks to insurance companies and brokerage firms. A financial institution is any public- or privately-owned organization that collects, invests and distributes funds. Banks bridge the gap between individuals who want to save their money in a secure place and those who need to borrow money.

• Explain the concept, the purpose and advantages of microcredit. What kind of risk is there? Give examples of banks that provide microcredits.

Microcredit is an extremely small loan given to those who lack a steady source of income, collateral, or any credit history. It aims to support and kickstart entrepreneurs who are unable to obtain the financial backing needed to start a small business or capitalize on an idea.  Microcredit is also part of microfinance, a line of finance that aims to help people of a lower socioeconomic background through catered financial services, which include savings accounts and loans. Microcredit was built on the concept that people with skills and more entrepreneurial mindsets also came from impoverished countries that did not necessarily have access to financial services that could suit them.

People who receive microcredit services typically live on a barter system, where goods or services are exchanged for other goods or services, and currency is not used as a medium for exchange.

There are some cons regarding microcredit, including too much pressure to repay loans, a large suicide rate among borrowers, and severe debt levels.

A contributing factor to the disadvantages is the high interest rates on some microcredit loans – rates can be 30% or even higher.

• Speak about Grameen bank, its history, current position on the market and role.

The Grameen Bank is a microfinance organization and community development bank started in Bangladesh that makes small loans (known as microcredit or «grameencredit») to the impoverished without requiring collateral. The bank’s system is based on the idea that the poor have skills that have been under-utilized. A group-based credit approach utilizes the peer-pressure within the group to ensure the borrowers follow credit discipline. The bank also accepts deposits, provides services, and operates several development-oriented businesses including fabric, telephone, and energy companies.

The bank has earned well-deserved attention for introducing a novel concept in the area of finance. Prior to the inauguration of Grameen Bank, financial institutions showed great reluctance in providing loans to the poor. They have little or no collateral to guard against loan default.

Muhammad Yunus, the bank’s founder, earned a doctorate in economics from Vanderbilt University in the United States.

The Bank today continues to expand across the nation and still provides small loans to the rural poor. By 2006, Grameen Bank branches numbered over 2,100. Its success has inspired similar projects in more than 40 countries around the world and became a model for World Bank initiatives to finance Grameen-type schemes.

The bank gets its funding from different sources, and the main contributors have shifted over time. In the initial years, donor agencies used to provide the bulk of capital at extremely low rates. In the mid-1990s, the bank started to get most of its funding from the central bank of Bangladesh.

• Explain the concept of ethical banking.

Ethical banking involves consciousness of how banking practices affect society and the environment. Financial institutions that emphasize ethical practices seek profit like any other financial institution. However, they strive to generate earnings without sacrificing principles or causing harm.

Ethical banking encourages transparency, helps build strong communities, and establishes a set of principles and ideals that govern how and to whom finances flow. Banks that follow such a practice are also often the last chance available to many start-ups at getting the funding necessary to get off the ground.

The practical reality, however, is that while establishing a set of core principles to operate by is a noble endeavor, refusing to take on clients or work with organizations who somehow “violate” said principles can spell financial disaster, both for the clients and the bank.

 

• Speak about the main objectives of central banks. Give examples of their services.

The main objective of a central bank is to ensure financial stability. Depending on the country, central banks might have other objectives such as controlling inflation, unemployment, interest rates, or exchange rates. However, all these objectives are in line with the main objective of ensuring financial stability.

Central banks have the monopoly of issuing notes, and these notes issued by central banks act as legal tender of money. All commercial banks are obligated to prepare and submit a report of their undertaking to the central bank after a given period of time. The central bank receives deposits on behalf of the government from sources such as income tax and foreign aid. It also makes payments on behalf of the government. The control of credit is realized through the use of the monetary policy. The central bank controls the credit creation power of commercial banks to curb inflationary and deflationary pressures on the economy.

 

• Speak about advantages and disadvantages of Islamic banking.

Islamic finance was initiated as a Shariah based choice. For the practitioners of the Islamic religion, it is now presented as the ultimate alternative after the financial crisis. Islamic finance has been insulated from the financial crisis in certain aspects.

Advantages of Islamic finance

Islamic finance presents potential positive effects: lower danger of insolvency, financial crisis, speculation, participation in the financial system.

The common view considers Islamic finance to be less risky or safer than its opponents. Another advantage of Islamic finance is providing Shariah compliant finance to those pious people in quest for investments which respect Islamic ethos. The most relevant advantage in the recent crisis is the fact that Islamic finance proved to be an anti crisis model. In Islam, money cannot generate money. In order generate a benefit; one must participate in the production or the risk taking procedure. This is usually achieved by the Islamic contracts or profit loss sharing principle.

However, Islamic finance presents some disadvantages. More risks for depositors, higher costs, and principal-agent problems, inadequate financing, limited supply, insurance with pitfalls, less scope for diversification and hedging.

The profit and loss sharing model means depositors’ interest can fluctuate. Even if the depositors can monitor the bank, their scope of managing is very restrained to the voting measures against the management or retrieving the funds. Islamic finance is too complicated and expensive. Futures, forwards, derivatives are banned. By consequent, the possibility of hedging against risks is very limited.

• What types of banks do you know? Speak in detail.

Retail banks offer loans and may provide credit cards, and they’re the ones with numerous branch locations in populated areas.

Commercial banks focus on business customers. Businesses need checking accounts just like individuals do. Commercial banks, which are also called business banks or corporate banks, manage payments for customers, provide lines of credit to manage cash flow, and offer foreign exchange services for companies that do business overseas.

Investment banks help businesses raise capital in financial markets.

Private banks provide services exclusively to wealthy clients, usually those with at least $1 million of net worth. They help clients manage their wealth, provide tax advice, and set up trusts to avoid taxes when leaving money to descendants.

Central banks manage the monetary system for a government.

Credit unions are similar to banks, but they are not-for-profit organizations owned by their customers. They offer products and services more or less identical to retail banks.

Online banks operate entirely online; there are no physical branch locations available to visit with a teller or personal banker.

Mutual banks are similar to credit unions because they are owned by members (or customers) instead of outside investors. Also like credit unions, they tend to be active in only a single community.⁷

• Describe three central banks that you know. What are their differences and similarities?

The Central Bank of the Russian Federation is the central bank of the Russian Federation, originally founded in 1860 as the State Bank of the Russian Empire. It is headquartered on Neglinnaya Street in Moscow. Its functions are described in the Constitution of Russia and in federal law.

The Deutsche Bundesbank  is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks (ESCB). Due to its strength and former size, the Bundesbank is the most influential member of the ESCB. Both the Bundesbank and the European Central Bank (ECB) are located in Frankfurt, Germany. The Bundesbank was established in 1957 and succeeded the Bank deutscher Länder, which introduced the Deutsche Mark on 20 June 1948. Until the euro was physically introduced in 2002, the Bundesbank was the central bank of the former Deutsche Mark.

The Bank of England is the central bank of the United Kingdom and the model on which most modern central banks have been based. Established in 1694 to act as the English Government’s banker, and still one of the bankers for the Government of the United Kingdom, it is the world’s eighth-oldest bank. It was privately owned by stockholders from its foundation in 1694 until it was nationalized in 1946 by the Attlee ministry.

The Bank became an independent public organization in 1998, wholly owned by the Treasury Solicitor on behalf of the government, but with independence in setting monetary policy.

• What services does a bank offer for a small business?

Banks these days offer almost all kinds of service ranging from depositing a money to income tax/GST collection.

The basic service of every bank is to deposit the customer’s money and lend it to another business and render its service.

Another most common type of service is safe deposit Lockers. Almost every bank has got lockers to keep safe custody of the belongings of the customers.

Discounting of Bills/Collection of cheques for clearing.

Forex transaction/Post credit/Bank Guarantee/ letter of credit.

Financing infrastructure projects.

Issuance of accounts.

29. What banking services do you know? Which ones are obsolete?

Most banks offer financial services for business owners who need to differentiate professional and personal finances. Different types of business banking services include:

• Business loans
• Checking accounts
• Savings accounts
• Debit and credit cards
• Merchant services
• Treasury services

Most banks offer financial services for business owners who need to differentiate professional and personal finances. Different types of business banking services include:

• Business loans
• Checking accounts
• Savings accounts
• Debit and credit cards
• Merchant services (credit card processing, reconciliation and reporting, check collection)
• Treasury services (payroll services, deposit services, etc.)

The ability to manage your finances online from your computer, tablet, or smartphone is becoming more and more important to consumers. Banks will typically offer digital banking services that include:

• Online, mobile, and tablet banking
• Mobile check deposit
• Text alerts
• eStatements
• Online bill pay

Loans are a common banking service offered, and they come in all shapes and sizes. Some common types of loans that banks provide include:

• Personal loans
• Auto and boat loans
• Home equity lines of credit
• Home loans
• Business loans

 

 

Зав. кафедрой

иностранных языков №1                                          И.Л. Экарева