Supply and Demand

Theory of Supply and Demand shows how consumer preferences determine consumer demand for commodities, while business costs determine the supply of commodities.

THE DEMAND SCHEDULE

Relationship that exists between price and quantity bought is called the Demand Schedule or the Demand Curve

e.g – The higher the price of an article, other thing remain constant, the less units consumers are willing to buy and vice versa.

THE DEMAND CURVE

Ø  The graphical representation of the demand schedule is the demand curve.

Ø  Quantity and price are inversely related.

Ø  Law of downward-sloping demand.

Quantity demanded tends to fall as prices rises for two reasons –

 1. Substitution effect (substitute other similar goods)

2. Income effect (curb consumption)

FORCE BEHIND THE DEMAND CURVE

·         Average income

·         Size of market

·         Price and availability of related goods

·         Taste and preferences

·         Special influences e.g Umbrella in rainy and air condition in hot weather

THE SUPPLY SCHEDULE

The supply schedule (or supply curve) for a commodity shows the relationship between its markets prices and the amount of that commodity that producers are willing to produce and sell, other things being constant.

THE SUPPLY CURVE

Ø  Show Upward slop

Ø  The law of diminishing returns

FORCE BEHIND THE SUPPLY CURVE

·         Cost of production

·         Prices of input and technological advances

·         Technological advances

·         Prices of related goods

·         Government policy

·         Special factors

IMPORTANT POINT

Ø  When changes in factors other than a good’s own price affect the quantity supplied, we call these changes as shifts in supply .

Ø  Supply and demand interacts to produce an equilibrium price and quantity or market equilibrium.

Ø  When the forces of supply and demand are in balance, there is no reason for price to rise or fall, as long as other things remain unchanged.

Ø  A market equilibrium comes at the price at which quantity demanded equals quantity supplied.

Ø  The equilibrium price is also called the market-clearing price.

EFFECT OF A SHIFT IN SUPPLY OR DEMAND

Ø  In case of Supply, there might have been a change in technology or input price.

Ø  In demand shift, one of the influences affecting consumer demand – incomes, population, and the prices of related goods or taste

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Extention of Registration for JAIIB/DB&F examination

As per notice publish by the IIBF Dated 27^th March 2018, regarding the Registration for JAIIB/DB&F examination is as below -

“Registration time for JAIIB and DB&F examination is extended till 10^th April 2018 with normal fee and upto 13^th April 2018 with late fee. Candidates are requested to register before the last date to avail the opportunity to appear in May 2018 examination”

So it an opportunity for that student who cannot apply for the said examination due to any reason.

Also Read: 

Schedule of JAIIB and CAIIB 2018

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Fundamental of Economics

Economic is a social science concerned with the production, distribution and consumption of goods & services.

1. Adam Smith ( Father of Modern Economic ) define Economic as –

Ø Economic is a study of Wealth

Ø Known as “Wealth Definition”.

2. Prof. Alfred Marshall define as –

Ø Economic is a study of mankind in the ordinary business of life.

Ø It examine that part of individual and social action which is most closely connected with the attainment and the use of the material requisites of well being.

Ø Known as “Welfare Definition”

3. Lionel Robbins define as –

Ø Economic is a science which studies human behavior as a relationship between ends & scare means which have alternative uses.

Ø Known as “Scarcity Definition”

10 Best Books

Comparison Between Microeconomic & Macroeconomic

Microeconomic	Macroeconomic
It studies economic problem at an individual level	It studies economic problem at an level of an economy as a whole i.e GDP, Unemployment rate & price indices.
It determine the output and price for the individual firm.	It determines an aggregate output and general price level in the whole economy.
Demand and supply are its main tools.	Aggregate demand and aggregate supply are its main tools.
Its assume all the macro variable to be constant as National income, Consumption, Saving etc.	Its assume all the micro variable to be constant as demand of household, supply of firm, prices of individual product etc.

THREE ECONOMIC QUESTION

There are three questions every society must answer -

1. What will be produced ?

2. How will it be produced ?

3. For whom will it be produced ?

TYPE OF ECONOMY

Market / Capitalistic Economy	Command / Socialistic Economy	Mixed Economy
In which individuals and private firms make the major decisions about production and consumption	In which the Government make all the important decisions about production and distribution	Decisions are made by business based on consumer demand however Govt. also makes some decision
“Laissez-faire” economy		In India
In England

Important Book & Author

1. An Enquiry into the Nature and Causes of the Wealth of Nations – Adam Smith

2. General Theory of Employment, Interest and Money – John Maynard Keynes

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BANK FINANCIAL MANAGEMENT

BANK FINANCIAL MANAGEMENT

Module A: International Banking

v  Exchange Rate and Forex Business

v  Basic of Forex Derivative
v  Correspondent Banking and NRI Account
v  Documentary Letter of Credit
v  Facilities of Exporter and Importer
v  Risk in Foreign Trade – Role of ECGC
v  Role of Exim Bank, Reserve Bank of India, Exchange Control in India - FEMA & FEDAI & other

Module B: Risk Management

v  Risk & Basic Management Framework

v  Risk in Banking Business
v  Risk in Regulation in Banking Industry
v  Market Risk
v  Credit Risk
v Operational Risk & Integrated Risk Management

Module C: Treasury Management

v  Introduction to Treasury Management

v  Treasury Product
v  Funding & Regulatory Aspects
v  Treasury Risk Management
v  Derivative Products
v  Treasury and Asset-liability Management

Module D: Balance Sheet Management

v  Component of Assets and Liability in Bank’s Balance Sheet and Their Management

v  Banking Regulation and Capital
v  Capital Adequacy – The Basel – II Overview
v  Supervisory Review
v  Pillar 3 – Market Discipline
v  Asset Classification and Provisioning Norms
v  Liquidity Management
v  Interest Rate Risk Management
v  RAROC and Profit Planning    

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ADVANCE BANK MANAGMENT

ADVANCE BANK MANAGMENT

MODEL  A: ECONOMIC ANALYSIS

v  Fundamental of Economic

      v  Supply and Demand

      v  Money Supply and Inflation

v  Theories of Interest

v  Business Cycle

v  Indian Economy and Various Sectors of the Economy

v  Economic Reforms

v  Monetary Policy and Fiscal Policy 

v  GDP Concept

v  Union Budget

v  Challenges Facing Indian Economy

 MODEL B: BUSINESS MATHEMATICS

v  Time Value of Money

v  Sampling Methods

v  Correlation and Regression

v  Time Series

v  Estimation

v  Bond Investment

v  Linear Programming

v  Simulation

MODEL C: HUMAN RESOURCE MANAGEMENT

      v  Fundamental of Human Resource management

v  Development of Human Resources

v  Human Implication of Organisations

v  Employees’ Feedback and Reward System

v  Performance management

v  HRM and Information Technology

MODEL D: CREDIT MANAGEMENT

v  Overview of Credit management

v  Analysis of Financial Statements

v  Working Capital Finance

v  Term Loans

v  Credit Delivery

v  Credit Control and Monitoring

v  Risk Management and Credit Rating

v  Rehabilitation and Recovery   

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