CONCEPT

Power... what is it ? Power. what is it ? is power a hunger? why everybody wants to be powerful? is power a things which everybody want to get it. or Power is a product,behind this everybody running. Power to lead on people by people is become human nature and it has been doing since early days of Human existence. but those days it was different we were struggling for our existence but after civilization and later it is different. today our power is a hunger a selfishness. there are many form of power or power is in many form or things or product. for example power is in wheat, power is in rice, power is in milk, power is in fish, power is in vegetable, power is in land, power is in house, power is in fruit, power is in gold, power is in silver, power is in weapon, power of politics, power is in service. so There are many-many form of power which is available in product or service .and we all are running behind to get it to become powerful. but it is very difficult to ever

I t is a essential to  understand by a Nation's peoples about how money work and banking system is operated. I n my previous three article, it has been tried to make understand about money and banking system in very easy method. so about this, let us start the journey ahead. For understanding this we have to know that Government and Bank are two different institute. Both are Interconnected which is followed by both under rules and regulation. but Bank are independent in many way. In India, RBI   was established on 1st   April 1935 in Kolkata .Before independent of India. later it is been nationalized on 1949. So As we have known that   RBI was a private financial intuition / entity and it is a autonomous body of Govt. of India after nationalized. So know let us come to know how Bank make money. As we have known how Goldsmiths converted Gold into promissory acknowledgement and slowly the promissory acknowledgement become promissory note and like that this all was going on.

N ow we will understand the compounding power and magic of money which is managed by Bank. which makes us and keep us slave. which control money supply. it is been always taught in Economies that money supply is based on Gold standard and the theory of Demand and Supply of Goods and Services. But Gold standard money monetary system has been ended   in 1933 due to some reason. Now money supply is under Banks control. it is controlled by central. in India, it is Reserve Bank of India. on Reserve Bank of India also there are Banks. which control all over world's Central Bank. but here we must know that Banks are not fully under Government. or we can say semiprivate institution but   Banks are independent from Government. In India, Reserve Bank of India can issue all value of Notes from Rs.2 to Rs.2000 or more. Like Rs.2,5,10,20,50,100,500,1000 and 2000. But Except Rs.1. Because Government of India issue Rs.1. we can see the one different between Rs.1 and another from Rs

Concept of  Money and Banking system. N ow let us come again on money, as in previous article we focused little on money and as we know little more about it. Knowing about money is really very interesting and we must know more and more about money .It is mystery and magic and a invisible power, it has of compounding. here we will focus on Fiat Money . because it is the man-made magic to unified the all  scattered power . .now let us come to know. how  Fiat Money came in use or in circulation . Long-long back ago, Commodity Money was in use. That time commodity money was been used for Trade and Economics and for Exchange. As we know Commodity money has its own value. During the Era peoples used to keeps their Gold, Silver and other precious Items Goldsmiths has, for security purpose. Goldsmiths taken care this all precious valuable Items. for Example, when somebody come to keep their 10 Grams of Gold in Goldsmiths then Goldsmiths used to give him a Acknowledgment/

T o understand the concept of money, we have to go many years ago. Here, in this world every things are being exchanged between and among one to another's ,and that is how our life and livelihood is going on. so the more you have power of exchanged the more you will be able to full fill your need and want. now question is what is being exchanged among us. we can say several things and it will be very long list as more as our need and want. but basically  only two things are exchanged which are 1.Goods / Products 2. Services There are many  years ago this products and service are exchanged by product and services, and it is called BARTER System. for example if a farmer grew Rice and Wheat could exchanged Fish and so on. People work under farmer could get Rice and Wheat for his service. But there are many limitation and Cons of  the Barter System. 1. Unstable and Big Gap of Demand and supply. 2. Difficult to determine Value of product and service. If a fisherman