Commercial banks plays a vital role in every field of economic activity of the country. They are regarded as the wheels of modem economic system as shown by the following points.
Money plays an important role in the economy. Money performs the important functions of solving the different problems of the country. Following points explain that money is the pivot around which the whole science of economics clusters.
Banks are those institutions which conduct the business purely on profit motive. Banks receive surplus money from the people who are not using it and lend to those who need it for productive purpose.
The scope of banking refers to the extent to which it deals with the receipts of deposits and advancing loans. The scope of banking covers all the forms of business coming within the legitimate limits of a banker. The scope of banking can be described with the help of:
E-Banking means electronic banking. Electronic banking is through computer and associated systems. Electronic banking also refers to the banking done through the computer based devices. In electronic banking the bankers use information technology devices to provide better and efficient services to their clients.
The article is aimed at addressing serums economic problems of balance of payment deficit and depleting foreign exchange reserves by buying foreign exchange from overseas Pakistani workers rather than accumulating foreign loans on tough terms. Cost of this purchase is far less than the interest paid on foreign loans and.
Various theories have been presented by various economists in different times i.e.
(1)marcantiles theory of trade.
(2)classical theory of trade(Adam smith,ricardo.)
Historical evidences show that money has evolved indigenous in response to the economic needs of the people. The money is generally classified.
There are two principles of note issue. The first is the currency principle and the second is banking principle. There are different views about these principles. One school of thought says that there should be full convertibility of.
To solve the problems or remove the difficulties of barter system, such means of exchange were needed that could facilitate the trade or dealing of goods.