Banking System Essay Example | Topics and Well Written Essays - 3000 words

Banking System - Essay Example When it comes to wire transfers, the most annoying thing in it is with regard to the lengthy and painstaking procedures involved in authentication and also the cost factor is a major concern. The cost of initiating a wire transfer of money say, between America and England would cost a minimum of $15, which is quite costly. Another major factor of concern is the accessibility. Even today, the common man has to go to any branch of a bank even if there are cases where there is only a single branch in most of the cities. Such a limitation makes it difficult for effective and smooth business, when other modern technologies are at hand. The modern era has seen an increase in wireless communication along with the advent of the age of the Internet and the WWW (world wide web). As such, banks today feel the need to take advantage of these developments and modify their current operations in order to incorporate such new technologies and practices. 1) System Startup: The system is started up when the operator turns the operator switch to the "on" position. The operator will be asked to enter the amount of money currently in the cash dispenser, and a connection to the bank will be established. Then the servicing of customers can begin. 2) System Shutdown: The system is shut down when the operator makes sure that no customer is using the machine, and then turns the operator switch to the "off" position. The connection to the bank will be shut down. Then the operator is free to remove deposited envelopes, replenish cash and paper, etc.3) Session: A session is started when a customer inserts an ATM card into the card reader slot of the machine. The ATM pulls the card into the machine and reads it. (If the reader cannot read the card due to improper insertion or a damaged stripe, the card is ejected, an error screen is displayed, and the session is aborted.) The customer is asked to enter his/her PIN, and is then allowed to perform one or more transactions, choosing from a menu of possible types of transaction in each case. After each transaction, the customer is asked whether he/she would like to perform another. When the customer is through performing transactions, the card is ejected from the machine and the sessio n ends. If a transaction is aborted due to too many invalid PIN entries, the session is also aborted, with the card being retained in the machine.The customer may abort the session by pressing the Cancel key when entering a PIN or choosing a transaction type. 4) Transaction: A transaction use case is started within a session when the customer chooses a transaction type from a menu of options. The customer will be asked to furnish appropriate details (e.g. account(s) involved, amount). The transaction will then be sent to the bank, along with information from the customer's card and the PIN the customer

Market prices, Valuation Principle, Net present Value, interest rates, Essay

Market prices, Valuation Principle, Net present Value, interest rates, and bonds - Essay Example Through the market price, the financial managers can easily know the current price of the products and services of the company and also can estimate the future price of the products and services. The managers can also be aware of the price of the raw materials and other necessary things that are required for the smooth functioning of the business. Another essential thing that is important and can be known through the current market price is the requirement of working capital of a business. Moreover, through these the future working capital requirement can also be met. Understanding the current price of the debentures and shares is also of high value for the finance manager. The price of the share and debenture are of great importance to the financial manager because through these prices the total share capital and the value of the business can be calculated. Furthermore, on the basis of these values and financial structure, the firm can expect higher investment from the public. Hence , on the basis of the above analysis it can be said that the market price is highly useful to the financial manager (Investopedia, n.d.) Question 2: Discuss How the Valuation Principle Helps a Financial Manager Make Decisions Valuation is the method of judging the potential market value of the assets and liabilities of a firm. Valuation is essential and is required in the business for the future prospects. The work of valuation generally arises from mergers, acquisition, valuation of assets and liabilities. The valuation principle is of great importance to the finance manager in order to make the decisions regarding the future possibilities of the firm. Risk is associated with every aspects of the business. Through different valuation techniques, the finance manager can estimate the future risk associated with the business or any other projects. After considering the level of risk the finance manager can estimate the profits associated with the businesses and projects. The valuation principle helps the finance manager to estimate the outlook of the assets and liabilities of the business and can also make an assessment for the future requirements by the business house. Tax assessment is one of the important aspects of the business for the finance manager. Hence, with the various tools of the valuation principles, the finance manager can easily estimate the tax structure of the future. For assessing the financial feasibility and viability of the future, the principles of valuation play a significant role in the job profile of the finance manager. Moreover, in case of mergers and acquisitions, the valuation principles are needed for the business with the available in-depth financial information of the company. Hence, it can be concluded that the valuation principles are of high importance to the financial manager in order to make decisions (Blackburn, 2001). Question 3: Describe How the Net Present Value Is Related To Cost-Benefit Analysis The distinction between the present value of cash inflows and cash outflows is known as the Net Present V