...the world might be the same as hundred years ago. “Creativity, understood as fruitful originality, not mere novelty, is omnipresent in human experience, from the brilliant artistic works, inventions and discoveries that change the course of one life or many to the everyday efforts of problem solving seen in verbal or mechanical wit” (Caramenico & Goodman, 2013). On the other hand, commercial and trade also play a substantial role in the development of society. Moreover, the method of payment, which is a crucial part of business, has had a tremendous impact on individual’s lives. This essay will analyse the creativity of payments in two aspects which are motivation and imagination by examing the development of human society. This essay will also provide two real world examples to give a critical analysis of how creativity is applied in payments. The methods of payments are everywhere in people’s lives, such as shopping or transfer accounts. According to Babbush & Charles (2008), “payment is the performance of a duty or proise, the discharge of a debt or liability by the delivery of money or something else of value. ” The global growth increased broadly as expected to 3.75% in the third quarter of 2014, up from 3.25% in the second quarter (“IMF Global GDP Outlook”, 2014), averagely, keeping stable increase. Simultaneously, the finance industry developed rapidly and played an increasingly...
Words: 1718 - Pages: 7
...accompanied by efficiency. One of the major challenges encountered by the business community is means of payments especially if the operations involve international trade. For a business person with clients abroad or making use of inputs from oversea countries, the means of payment is really a pinching issue. However, in contemporary world which is characterized by rapid improvement of the standards of living, technology has identified this problem. Experts in this field have invented various means of payment available to the business community to make their commercial activities easier for rapid economic growth and prosperity of human kind. The consumers have also not been left out, since they are the targeted group by the manufacturers of different commodities. These payment methods make use of the internet and therefore can be used to reach all the parts of the world. They have been termed as online payment and they include the following:- (i) Masterpass It’s also called Masterpass wallet. It contains customer’s information about payment and shipping address. This is done in a very secure and convenient place. This facilitates purchase of commodities everywhere where this card is accepted. (ii) Paypal This means of payment has millions of active account s all over the world. Its major service include online payment and e-wallet. It contains stored paypal payment information as well as Paypal Express Checkout. It therefore ensures that customers with email address get...
Words: 549 - Pages: 3
...Balance of Payments The balance of payments is the sum of all transaction that Australia has with the rest of the world. These figures are presented in two accounts- the current account and the capital and financial account. The capital and financial account are comprised of reversible transactions while the current account covers external transactions that are non- reversible. The balance of payments always balances but since the 1980s, Australia has persistently experienced a large Current Account Deficit (CAD). The balance of payments is based on a double entry system (ie credits and debits) of ledger accounts known as the current account and the capital and financial account. Current Account The current account records all transactions of a current nature involving money received (income) and money spent (expenditure) for M and X of g/s, income and transfers. These transactions are non-reversible (money has either been received or spent) ------------------------------------------------- BOGs- Balance on god and services ------------------------------------------------- -Shows aussie X/M patterns Goods * Exports (goods credits) and imports (goods debits) * X divided into rural and non rural * M classified as consumption, capital or intermediate * Tangibles Services * Exports (credits) and imports (debits) * Tourism, education, shipping, finance * Intangibles Net income * Income received from aussie owned assets...
Words: 454 - Pages: 2
...Examine India’s balance of payments in the last two decades. What have been the trends in terms of merchandise trade, invisibles and capital flows? The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and, if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance. But in practice this is rarely the case and, thus, the BOP can tell the observer if a country has a deficit or a surplus and from which part of the economy the discrepancies are stemming. DIVISION OF BALANCE OF PAYMENTS The BOP is divided into three main categories: the current account, the capital account and the financial account. Within these three categories are sub-divisions, each of which accounts for a different type of international monetary transaction. The Current Account The current account is used to mark the inflow and outflow of goods and services into a country. Earnings on investments, both public and private, are also put into the current account. Within the current account are credits and...
Words: 3347 - Pages: 14
...Main system I would consider to adding a central server at the headquarters of RFC. Especially since they are considering to expand in the next three years. Using a central server gives the branches the opportunity to be up-to-date in real-time. To accomplish this, all branches need an Internet connection with a VPN connection to the headquarters central server. Every branch has its own ERP branch software that is connected to the headquarters ERP system and therefore also with the central server. When using a process like this it is important that the ERP systems know when someone is watching a certain profile or editing it as it will prevent errors and or double entries. The vouchers and bank receipts will not be used anymore and will be replaced by the ERP system. Customers have to sign a form whether they pay at a branch or at the HQ. If a branch deposited the money, an e-mail will be sent to the branch and HQ to inform the employees. The bank will send data to the main server that updates the main ERP system and thereby also the ERP branch software. Customers It is a must for customers to be able to use a web application that gives them the opportunity to pay online and have an overview of their profile. Each customer has its own account that can be used to log on the website. An online chat gives them a fast helpdesk service for any quick questions. Furthermore, Internet banking is also possible if they enter the right reference number that has been given in the...
Words: 293 - Pages: 2
...Sample Final: International Payments I, MCQ 1, A shipping document indicating the details of the shipment and delivery of the goods and their ownership is a A, B/L (True: This is the most important transport document) B, Sight draft (False: This is a type of B/E) C, Time draft (False: This is a type of B/E) D, L/C (False: this is a method of payment) 2, A written statement by the exporter ordering the importer to pay a specific amount of money upon presentation to drawee to whom it is addressed is known as a A, B/L (False: This is a transport document) B, Sight draft (True: This is the type of B/E that requires payment upon presentation) C, Time draft (False: This is the type of B/E that requires payment at a future date after presentation) D, L/C (False: this is a method of payment) 3, L/C may be payable at all but one of the following locations: A, Confirming Bank’s counters (False: Confirming Bank has irrevocable undertaking to Beneficiary) B, Nominated Bank’s counters, or at the counters of any bank if L/C is freely negotiable (False: Nominated Bank pays Beneficiary on behalf of Issuing Bank (Confirming Bank)) C, Issuing Bank’s counters (False: Confirming Bank has irrevocable undertaking to Beneficiary) D, Reimbursing Bank’s counters (True: Reimbursing Bank has no undertaking towards Beneficiary. It only functions to reimburse other banks with authorization of Issuing Bank) 4, Which of the following can be combined under a...
Words: 346 - Pages: 2
...the buyer before payment 2. It is not a bank draft A. promissory note B. checks C. money orders D. bill of exchange E. documentary collections 3. B/E represents: A. unconditional order in writing to pay a specified amount of money to a specified person or to the bearer, upon presentation of the bill at a specified future date B. an order given to the bank in order to pay a specific amount to a person from the company current account against the presented bill C. an order given by a person to its bank in order to pay a specific amount directly in the beneficiary’s account D. a written promise to pay a determinate sum of money made between two parties 4. This is not a benefit for the importer when he use a payment based on the letter of credit: A. reliance on issuing bank’s credit rather than buyer’s B. documentary evidence that the ordered goods have been shipped on time C. payment deferred until goods are shipped and documents presented D. assurance that necessary clearance documents will be provided 5. A clean L/C means that: A. the L/C can not be revoked without the specific permission of all parties involved, including the exporter B. the L/C is issued by a bank and confirmed by another, obligating both banks to honor drafts drawn in compliance C. the place where the payment is realized by the exporter bank D. the documents are presented without other additional documents or notifications 6. In the case of open account payment A. the goods available...
Words: 1434 - Pages: 6
...ELECTRONIC PAYMENT SYSTEM Electronic Payments or e-payments refer to the technological breakthrough that enables us to perform financial transactions electronically. It can also be explain as a way of paying for a goods or services electronically, instead of using cash or a check, in person or by mail. TYPES OF ELECTRONIC PAYMENT SYSTEM Some of the types of electronic payments are the following; • Credit Card • Debit Card • Smart Card • E-Money • Electronic Fund Transfer (EFT) CREDIT CARD Credit card is small plastic card with a unique number attached with an account. It has also a magnetic strip embedded in it, which is use to read credit card via card readers. When a customer purchases a product via credit card, credit card issuer bank pays on behalf of the customer and customer has a certain period after which he/she can pay the credit card bill. It is usually credit card monthly payment cycle. Following are the actors in the credit card system. • The card holder - Customer • The merchant- seller of product who accept credit card payments. • The card issuer bank - card holder's bank • The acquirer bank - the merchant's bank • The card brand - for example , visa or MasterCard Credit card payment process STEP DESCRIPTION 1 Bank issues and activates a credit card to customer on his/her request. 2 Customer presents credit card information to merchant site or to merchant from whom he/she want to purchase a product/service. 3 Merchant validates customer's...
Words: 1093 - Pages: 5
...Balance of payment of Nepal The balance of payments account is a systematic record of all the transactions of a country’s inhabitants with the rest of the world over a given period of time. All transactions must be recorded somewhere. The IMF publishes a Balance Of Payments manual to standardize all balances of payments, and it contains the rules about which transactions are allowed. A favorable balance of payments usually implies a surplus which means that more funds are flowing in than leaving. Every transaction is recorded twice, once as a credit and once as a debit. A key point to remember about the balance of payments account is that the value of all the transactions must sum to zero. The balance of payments account consists of the following components: • Current Account • Capital Account Current Account The Current Account includes all transactions which give rise to or use up national income. The current account has four components: • The balance on goods, which records exports and imports of physical, relocatable merchandise. The export of betel nut, for example, brings in a credit, while the import of cars creates a debit. • The balance on services, which records transactions relating to the provision of non-physical items such as transport, travel and insurance. • The balance on investment income, which records dividends and interest payments that Nepalese earn on assets held overseas, and also payments to foreign residents on assets held in Nepal. •...
Words: 2353 - Pages: 10
... Government goods & service Primary income Secondary incomeCapital Account Acquisitions/disposal of non-produced non-financial assets Capital transfersFinancial Account Direct investment Portfolio investment Financial derivatives Other investmentReserve AssetsStatistical Discrepancy | 57,348125,614-14,003101-28,01226,893-3,202-1,273-697-4,317221-1,994-1,309-415-36,024-18,239159252-93-23,037-21,74858,388954-60,632-3,873-30,579 | 39,907108,230-16,693------------34,126-17,504-20.9---15,807-5,450-3,041-253-7,062-14,649-9,430.1 | 49,508125,064-20,546------------37,390-17,619280.6---76,495-17,101-37,867-975-20,55336,338-9,631.6 | Balance of Payment for Malaysia from 2012-2014 (in RM Million) (Taken from website of Department of Statistics Malaysia Official Portal) The balance of payments (BOP) is the method countries use to monitor all international monetary transactions at a specific period of time. Usually, the BOP is calculated every quarter and every calendar year. All trades conducted by both the private and public sectors are accounted for in the BOP in order to determine how much money is going in and out of a country. If a country has received money, this is known as a credit, and if a country has paid or given money, the transaction is counted as a debit. Theoretically, the BOP should be zero, meaning that assets (credits) and liabilities (debits) should balance, but in practice this is rarely the case. Thus, the BOP...
Words: 1223 - Pages: 5
...CHAPTER 4 BALANCE OF PAYMENTS 4.1. Balance of Payments (BoP) statistics systematically summaries the economic transactions of an economy with the rest of the World for a specific period. The Reserve Bank of India (RBI) is responsible for compilation and dissemination of BoP data. BoP is broadly consistent with the guidelines contained in the BoP Manual of the International Monetary Fund. 4.2. Balance of payment (BoP) comprises of current account, capital account, errors and omissions and changes in foreign exchange reserves. Under current account of the BoP, transactions are classified into merchandise (exports and imports) and invisibles. Invisible transactions are further classified into three categories, namely (a) Services-travel, transportation, insurance, Government not included elsewhere (GNIE) and miscellaneous (such as, communication, construction, financial, software, news agency, royalties, management and business services); (b) Income; and (c) Transfers (grants, gifts, remittances, ets.) which do not have any quid pro quo. 4.3. Under the Capital Account, capital inflows can be classified by instrument (debt or equity) and maturity (short or longterm). The main components of the capital account include foreign investment, loans and banking capital. Foreign investment, comprising Foreign Direct Investment (FDI) and Portfolio Investment consisting of Foreign Institutional Investors (FIIs) investment, American Depository Receipts/Global Depository Receipts (ADRs/GDRs)...
Words: 2037 - Pages: 9
...BALANCE OF PAYMENTS Monaco’s economy is motivated by foreign currency-earning activities which include; banking and tourism. Monaco doesn’t keep record of its foreign trade transactions hence; payment statistics are not very accurate. However, the United Nations Statistics Division estimated the exports and imports of goods and services in Monaco, based on a closed observation and comparison of France statistical data. Consequently, exports amounted to $299 million in 2004, a rise from $257 million in 2003 and $219 million in 2002. Imports increased from $205 million in 2002, to $246 million in 2003, and $296 million in 2004. Subsequently, Monaco has managed to keep a positive resource balance over the years. In 2000, Monaco had an external debt estimate of about $18 billion—this is a quiet god figure given that the country is not big at all. Before 2014, Monaco’s balance of payments (BoP) and international investment position (IIP) were hoarded according to the fifth edition of the Balance of Payments Manual, which sets the international standards for BoP and IIP statistics and is released under the aegis of the International Monetary Fund. Since January 2014, implemented a methodology of the Eurosystem's and European Union's statistical framework. The ECB and Eurostat publish b.o.p. and i.i.p. data and international reserves statistics in accordance with BPM6, methodology in the final quarter of 2014. The table below presents the balance of payment data for Monaco ...
Words: 1046 - Pages: 5
...7 Balance of Payments 7.1 Global Economic Review The global economy was facing two major threats at the start of FY13: the possible demise of the Euro, and a big fiscal contraction in the US, caused by the ‘fiscal cliff’.1 However, timely policy actions were taken to address these issues. In the EU, for instance, Outright Monetary Transactions (OMTs) were launched to lower the long-term yields on sovereign bonds; there was a restructuring deal of Greek public debt; and the agreement on Single Supervisory Mechanism (SSM) was reached, to help restore confidence in the viability of the European Union.2 Similarly in the US, a partial extension of Bush tax cuts was given under the American Taxpayer Relief Act 2012 (ATRA), to eliminate the revenue side of the fiscal cliff.3 Although these policy measures were able to restore some business confidence, these were, nonetheless, insufficient to pace up the economic recovery (Figure 7.1). In the EU, growth was constrained by fiscal consolidation; deleveraging; and tight credit conditions to repair balance sheets by financial institutions and households. In the US, growth remained lackluster throughout 2012 and early 2013, despite a pick-up in credit and housing following the launch of the third round of quantitative easing (QE3) in September 2012.4 Figure 7.1: Global GDP Growth World Emerging economies 8 6 percent Advanced economies 4 2 0 2011Q1 2011Q2 2011Q3 2011Q4 2012Q1 2012Q2 2012Q3 2012Q4 2013Q1 Source: World Economic...
Words: 10790 - Pages: 44
...Institutionalizing Electronic Payment (e-payment) Systems in Ghana |Prince Kwame Senyo | | |University of Ghana | | |kpsenyo@gmail.com | | INTRODUCTION Technological advancement has caught up with us in the developing world and there is a need to rapidly change and focus on how best we can make optimum use of this opportunity. Payment for goods and services have been simplified and expedited by the introduction of new technological innovations. Statistics from the World Payment Report (2011) indicates there is a global increase in the volume of non-cash payments transactions by 5% in 2009 to 260 billion in 2011. The payment for goods and services in Ghana is mostly cash based and characterized by long queues and delays. A study by Abor (2004) pointed out that, before the introduction of electronic payment in Ghana customers will have to go to their banks to perform all transaction and with the long queues in most of our banks, payment became a problem. Heeks (2002) described information system in developing economies like Ghana as questionable and coupled with different challenges. However,...
Words: 1925 - Pages: 8
...ways in which payments can be done in Zimbabwe and globally. Your organization which is into Financial Services Advisory has a clientele that is very ICT savvy yet at the same time economic conscious. Thus your clientele requires a quick and easy to reference guide with regards the alternative payment services. METHODS OF PAYMENT THAT IS AVAILABLE TO ZIMBABWEANS The internet is transforming the banking and financial industry in terms of the nature of core products /services and the way these are packaged, proposed, delivered and consumed (Sathye, 1999). Banks and other businesses alike are turning to Information Technology (IT) to improve business efficiency, service quality and attract new customers, (Nath et al, 2001) and (Kannabiran and Narayan, 2005). However, development and innovation in Zimbabwe over the years has been slow as clients would have resolved to use other payment methods than visiting the bank each time they need cash to settle payments. Explained below are some methods of payments that can be used in Zimbabwe to ease the problems of cash shortages. E-MICRO PAYMENTS: These are usually online payments of amounts less than $10.00. Debit and credit cards are not ideal for such payments in view of the associated bank charges. These can be used to buy items such as smartphone applications or podcasts costing $ 0.99. They are designed to capture mainly the youths who do not have Debit/Credit cards. These can be direct payments where the micro payments are added to...
Words: 1035 - Pages: 5
