Download - Economic final-presentation
![Page 1: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/1.jpg)
Economics
TOPIC•Banking System
•Bank•H/O of State Bank•Functions & Role Of State Bank
•Interest•What is Interest Rate•Advantages % Disadvantages of Interest•Economics Important•Interest Rate in Pakistan
![Page 2: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/2.jpg)
Introduction
• Kamran Ali– Roll#03
• Waqar Aslam– Roll#36From: MBA-14-I
• Teacher– Mam Anika
Shaheed Benazir Bhutto University
(SBBU)
![Page 3: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/3.jpg)
Banking System
Structural network of institutions that offer financial services within a country.Banking System is a principal mechanism through which the money supply of the country is created and controlled.
![Page 4: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/4.jpg)
Bank
An officially chartered institution empowered to receive deposits, make loans, and provide checking and savings account services, all at a profit.
![Page 5: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/5.jpg)
History Of State BankBefore independence on 14 August 1947, the Reserve Bank of India (central
bank of India) was the central bank for what is now Pakistan.
On 30 December 1948 the British Government's commission distributed the
Bank of India's reserves between Pakistan and India - 30 percent for Pakistan
and 70 percent for India.
The losses incurred in the transition to independence were taken from
Pakistan's share (a total of 230 million). In May, 1948, Mr. Jinnah took steps to
establish the SBP immediately. These were implemented in June 1948, and
the State Bank of Pakistan commenced operation on July 1, 1948.
![Page 6: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/6.jpg)
Functions & Roles of “SBP”
![Page 7: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/7.jpg)
What Is Interest Rate
• Interest rate is the extra amount of money charge on the borrowed money or asset.
• First time use in French Central Bank for controlling money supply and stability in economy in 1847.
![Page 8: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/8.jpg)
Advantages & Disadvantages
• In Case of High Interest– People maximum invest in banks (Savings)– Purchase bonds– Provide loans
• In Case of Low Interest Rate– People takes Maximum Loan– Benefits on Mortgage– Investment in market (Saving Things)
![Page 9: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/9.jpg)
• Interest rates are one of the major drivers of our economy, setting the pace for investment markets. Learning how interest rate changes can influence the marketplace can also help you understand how they impact your wallet.
Economics Important
![Page 10: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/10.jpg)
Economic Importants
Rs: 125 150 175
Amount of money Demanded and Supplied(Millions of Rupees)
Rs: 15 20 25
Amount of Investment(Millions of Rupees)
10
8
6
0
Rate of Interest, (Percent)
Money Investment
![Page 11: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/11.jpg)
Interest Rate (IR) in Pakistan
• Minimum IR 7.50 in 2002, Maximum IR 20% in 1996 and current IR is 8%.
• Simple interest • Compound interest• Floating Interest
![Page 12: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/12.jpg)
CONCLUSION
![Page 13: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/13.jpg)
TIME
![Page 14: Economic final-presentation](https://reader036.vdocuments.us/reader036/viewer/2022070521/58ef47391a28ab6c558b46b1/html5/thumbnails/14.jpg)