RSPH Blogs - Finances!

  What Are Shadow Banks? Shadow Banks are basically such financial bodies that performs bank like activities but aren't really official/commercial Banks. As, unlike Commercial Banks they tend to avoid large & time consuming procedures for making transactions. Some examples Of Shadow Banks....: Investment Banks, Mutual Funds, Insurance Companies, etc.! Here's how it really works.... How Do Shadow Banks Works? How Are Shadow Banks Different From Commercial Banks? (Examples!) Shadow Banks tends to collect money; for example like---- Mutual Funds, Insurance Companies, etc. ....& tends to Invest it somewhere instead of giving out loans as Commercial banks do....  & you know Commercial Banks actually have a leading role as they can usualy sell the property in case of a default. Don't they? Yes, they do! But Shadow Banks &/OR Mutual Funds // Insurance Companies profit is completely dependent on those Financial Instruments they tend to Invest in! So, they are basica

  What Are Investment Banks? An Investment Bank is basically such an organisation that tends to work in partnership with various businesses & help'em fulfill their financial needs by being fully responsible for the Risks, involved in the process of collecting the capital. *This entire definition will make a lot more sense by the end of this Blog!* Okay! So, now let's straight up talk about what do they really do & how do this entire system works.... So here we go; What Do Investment Banks Do & How Do They Work? Let's get an overview of what really happens.... Well, now just think that there is a Company willing to raise funds, faster! & so the Company can go to an Investment Bank & ask it to find investors for the Company. & so, the Investment Bank will basically find a good Investor for the Company. & it'll ensure both of them that, the seller will sell & the buyer will buy ---- taking onto the risk & by being a part of the process.

How Do Banks Works? Banks are said to be one of the most powerful financial bodies as they hold the power to change the look of the Economy by various means! Have you ever wondered, how exactly do these Banks really work? ---- How & also Why would they pay 'US' interest? How is paying Us interest beneficial for them? & how do Banks earns, themselves? So, here's an overview of the entire Banking System, answering/covering all the above mentioned questions! So; Banks basically tends to collect money from common people & actually we are the one's to deposit money for various reasons; now, it can be to keep our money safe &/OR simply to earn some interest on our money! ---- Banks don't really come asking for the money; We are the one's to go to'em. & after depositing the money if we don't withdraw the money from the Bank for 1 year than we get; let's say 4% of interest, on that. But how & why.... So, here's what really happene

  What Is Fiat Curency? To understand what really fiat currency is.... We'll first have to go way back to the first ever monetary system & discuss about the evolution of Money! So, here we go; If we go all the way back, to discuss 'bout the evolution of money than we'll get the Barter System as the very first means of Exchange/let people buy anything they desired. So, Barter System was kind of like— one person who have a bag of rice & wants a pair of shoes than that one person have to find someone who is willing to giveaway a pair of shoes for that rice bag. By just thinking a bit 'bout the Barter System.... you may have already realised, that this wasn't the best means of exchanging/getting or buying the things one wanted. You know it wasn't that accurate & infact, it was very difficult to find such people who were giving away stuff in return of stuff one actually wanted & AT THE SAME TIME, the other person willing to take the same stuff provide