PART III - IT & CYBER LAWS Hardware Input Devices (Names and uses) Output Devices (Names and uses/features) Memory devices - Primary and Secondary (Examples, Features) Software Classification – System software and Application software Operating System – Functions and examples Popular Application software packages – Word processors, Spreadsheets, Database packages, Presentation, Image editors (Uses, features and fundamental concepts of each) Basics of programming – Types of instructions (Input, Output, Store, Control transfer) ( Languages need not be considered ) Computer Networks Types of networks – LAN, WAN, MAN (Features and application area) Network Devices – Media, Switch, Hub, Router, Bridge, Gateway (Uses of each) Internet Services – WWW, E-mail, Search engines (Examples and purposes) Social Media (Examples and features) Web Designing – Browser, HTML (Basics...
“A Central Bank is the bank in any country to which has been entrusted the duty of regulating the volume of currency and credit in that country”-Bank for International Settlement (BIS)
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The Riks Bank of Sweden, the central bank of Sweden, was the 1st central bank established in the world – 1656. |
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Central Bank |
Country |
Year |
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The Bank of England/ The Old Lady of Threadneedle Street |
England |
1694 |
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Bank of France |
France |
1800 |
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The Bank of Norway |
Norway |
1817 |
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The Bank of Denmark |
Denmark |
1817 |
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The bank of Australia |
Australia |
1818 |
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The Bank of Russia |
USSR |
1860 |
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The Bank of Japan/ Nippon Ginkō |
Japan |
1882 |
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The International Monetary Conference held at Brussels (Belgium) in 1929 recommended the setting up of a central bank in every country. |
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Federal Reserve System |
USA |
1913 |
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The Bank of Canada |
Canada |
1934 |
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Reserve Bank of India |
India |
1935 |
Functions of Central Bank
- Issuing of currency notes
- Acting as banker to the state / government
- Serving as the bankers bank
- Control of credit
- Acting as the custodian of the gold and foreign exchange reserves of a country
Issuing of currency notes:-
Principles of Note Issue:
- Currency Principles
- Banking Principles
System of Note Issue:
- Fixed fiduciary system
- Maximum fiduciary system
- Proportional reserve system
- Minimum reserve system
- Fixed fiduciary system / Partial fiduciary system: (adopted by England in 1844 & abandon in 1939)
The central bank issue currency notes upto a certain limit called the fiduciary limit without any gold backing. The fiduciary portion has to be covered by government securities.
- Maximum fiduciary system / Maximum issue system: (adopted by France in 1870 & abandon in 1928, later adopted by England in 1939 and Japan in 1941)
A maximum is fixed by the government for note issue. The central bank can issue notes upto this maximum limit without any gold reserves.
- Proportional reserve system: (Adopted by Germany in 1875, subsequently adopted by the USA (1914), Italy (1925), & Farance (1928). India was on this system till 30th June 1956.
A certain percentage (20% - 40%) of notes issued be covered by gold reserves. The remaining portion of the notes issued has to be covered sound collateral securities, such as government securities and trade bills.
- Minimum reserve system: (It is in practice in Netherlands, Union of south Africa, & India since 1st july, 1956)
The central bank is required to maintain a minimum reserve of gold or foreign securities or both against the notes issued.
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