Business Services Flashcards
Services are __ in nature
Intangible
Services are __ in nature
Intangible
Define service
A service as an act or performance that one party offers to another is essentially intangible and doesn’t result in the ownership of anything. Its production may or may not be tied to physical product
Features of services
I PINCH
1. intangibility
2. Perishability
3. Non-transferability
4. Consumer participation
5. Heterogeneous (inconsistency)
Name the types of business services
- Transport
- Communication
- Insurance
- Banking
- Warehousing
What does banco mean
Bench
The term Bank comes from?
The French word “banco” which means bench
Types of banks
- Central Bank
- Commercial bank
- Co-operative bank
- Exchange bank
- Saving bank
- Investment bank
- Regional rural Bank
- Specialised bank
- Development bank
What is the central bank of india
Reserve bank of india (RBI)
When was RBI established?
Reserve bank of india was established in 1935 under Reserve Bank of india 1934
State the functions of central bank of india
- Issue currency notes
- Frames monetary policy
- Banker for the government
- Banker for other banks and commercial banks
Why is commercial bank imp?
It plays an important role in the economic and social development of the country
Functions of commercial bank
Primary functions :- accepting deposits and lending money
Secondary functions :- utility functions and agency functions
Commercial banks are divided into the following three groups
Public sector banks
private sector banks
Foreign sector banks
Commercial banks are divided into the following three groups
Public sector banks
private sector banks
Foreign sector banks
Example of public sector banks
Bank of India
State Bank of India
Example of public sector banks
Bank of India
State Bank of India
Example of private sector banks
Axis Bank, HDFC bank
Example of foreign bank
Citi Bank, HSBC, Standard Chartered
Explain co-operative bank
They are registered under co-operative societies act and regulated under banking regulation act
What are industrial development banks?
Financial institutions that provide medium and long term funds to business firms
What are industrial development banks?
Financial institutions that provide medium and long term funds to business firms
Example of industrial development banks?
Industrial finance corporation of India(IFCI)
State finance corporation (SFC)
Maharashtra finance corporation (MFC)
Functions of industrial development banks
Giving medium and long term funds to business for expansion and modernization
2. Underwriting of shares given to public limited companies (banks, financial institutions)
3. Purchase debentures and bonds