Types of Banking

1. Types of banking

The financial market in the world is growing very fast in recent years. The financial system therefore has been categorized into many different types. Mostly they are known as Commercial Banking, Investment Banking, Universal Banking, Central Banking and Eurocurrency Banking.

At first, the term Commercial Banking is also known as business banking. It is a bank that provides checking accounts, savings accounts, and credit cards, mortgages, personal loans, and that accepts time deposits. Commercial banking may be involved the provision of financial services direct to consumers. Many banks nowadays operate in Commercial Banking Industry.

An Investment Banking is a financial system that assists corporations and governments to raise capital by underwriting and acting as the agent in the issuance of securities. An investment bank also assists companies involved in mergers or acquisitions or derivatives, and also, provides agency services of derivatives, fixed income instruments, foreign exchange, commodity, and equity securities. Unlike commercial banks and retail banks, investment banks do not take deposits.

An Universal Banking participates in many kinds of banking activities and is both Commercial Banking and an Investment Banking. In the US, the regulatory barrier to the combination of investment banks and commercial banks has largely been removed, and a number of universal banks have emerged in some certain jurisdictions.

A Central Banking, reserve bank, or monetary authority is a public institution that usually issues the currency, regulates the money supply, and controls the interest rates in a country. Central banks often also oversee the commercial banking system within its country's borders. The primary function of a central bank is to provide the nation's money supply, but more active duties include controlling interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis.

Eurocurrency is money in the form of bank deposits of a currency outside the country that issued the currency. Eurocurrency deposits may be of any currency in any country. The most common currency deposited as Eurocurrency is the US dollar, and the term Eurodollar is often used to refer to dollar deposits. One advantage of Eurocurrency from a bank's point of view is that it allows a bank to operate outside the regulation of the country issuing the currency in question.

Basically, along the way with the rapid development of worldwide financial system , the classification of those banking systems have yet played an important role to support it. Therefore, consumers and investors are getting more convenient in financial services.

2. Why is important to follow the Business Ethics

Everyone agrees that business managers must understand finance and marketing. But is it necessary for them to study ethics? Managers who answer in the negative generally base their thinking on one of three rationales. They may simply say that they have no reason to be ethical. They see why they should make a profit, and most agree they should do so legally. But why should they be concerned about ethics, as long as they are making money and staying out of jail? Other managers recognize that they should be ethical but identify their ethical duty with making a legal profit for the firm. It creates a question of why following Business Ethics is important.

It's a need to be ethical in any further sense, and therefore it's also a need for any background beyond business and law. Managers grant that ethical duty goes further than what is required by law. To see why, it is best to start with the question raised by the first one: why following Business Ethics is important? Although ethics is not the same as self interest, business executives often want to be assured that it is the same. They want to make certain that "one can do well by doing well," meaning to say that one can succeed in business by being ethical. An ethical company is more likely to build a good reputation, which is more likely to bring financial rewards over the long term. But good behaviour cannot be grounded in tangible reward alone. People who are interested only in reward will behave ethically when it suits their purpose, but they will go astray whenever the incentives change.

Ethics teaches one how to be good, assuming one wants to be good. It is important to know that one can normally be ethical. Otherwise ethical people could go into business only with a high risk of failure. Business ethics allows managers to do something good with their lives and investigates how to accomplish this through business. In other words, business ethics important because it treats profit and business success as means to a greater end: making the business world a better place.

3. What are the causes and effects in the changes of Supply and Demand?

Different circumstances affect supply and demand. For instance, the price of rice rises, therefore a restaurant that sales fried rice would raise the price of the dish that causes the demand of the fried rice to decrease, which is price of input. If the rice production increases causing more rice availability the market price of the rice decreases this creates a good technological change.

So far we have been looking at the impact on the demand curve and the supply curve as a result of changes in various factors.