Representative money is symbolic money. it does not consist of coins or rupees, but of tokens or certificates. These tokens or certificates can be exchanged for a fixed quantity of gold, silver, water, oil or food. Representative money is directly linked to the commodity that backs it. Continue reading
I was just wondering what would happen to the value of a commodity if there was only one buyer and only one seller. I know it won’t happen with a commodity, but just a thought. Generally for any commodity there will be more than one buyer and seller.
These days the economic situation is not so good and mostly many people are not trading. If at all they are trading I am sure someone is not getting a fair price either the seller or the buyer. Whenever there are many buyers and sellers for a particular commodity then the price of the commodity will be fair. It is just that the competition between the buyers and sellers ensure that the price is fair. Commodities which are not fast moving and have considerable shelf life are not sold by the seller, they wait for the buyer. Continue reading
Fringe Benefit Tax is the brain child of P.Chidambaram, the then Finance Minister of India. It was imposed in the year 2005. This guy knew how to take the money out from the common man in every possible way. It reminds me of the 1996 budget where he introduced the Competition Post card. This was very unique I hadn’t heard of it, he might have followed someone’s idea but the credit goes to him. Continue reading
This was something I found by accident and I am proud to share it with you. I had not known that Karnataka had so many banks established and the reason for establishment can be attributed to Swadeshi movement which led to the agitated entrepreneurs to establish banks for the obvious need, i.e. money. Continue reading
Public Debt is the also at times known as “Government Debt”. It is the money owed by any level of government whether it is the central, state or local government. Local government is our municipality, gram panchayat and the similar ones. Continue reading
Engineer's Finance 