Answer in one sentence
1) Explain the money remittance services of the post department?
Solution:
1) Money Remittance Services:
a) Electronic Money Transfer (eMO):
A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order. It is sent through the agency of the Post Office. A ‘Payee’ is the person named in the money order as the person to whom the money is to be paid. The advantage of sending money to someone through a money order is that the money is delivered at the house or his place of stay.
b) Instant Money Order (IMO):
India Post presents Instant Money Order (IMO), the instant on-line money transfer service that is instant, convenient, reliable, and affordable. IMO is an instant web-based money transfer service through Post Offices (IMO Centre) in India between two resident individuals in Indian territory. One can transfer money from INR 1,000/- to INR 50,000/from designated IMO Post Offices. It is simple to send and receive money.
c) International Money Transfer:
Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances are permissible. Department of Posts, Government of India with the Western Union Financial Services, a state of the art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India.
2) Explain marine insurance policies?
Solution:
It gives protection against the losses caused due to the dangers of the sea. It is a form of an insurance contract covering loss or damage to vessels or to cargo or passengers during marine transportation.
Types of marine insurance Policies:
1) Voyage Policy:
It is a policy in which the subject matter is insured for a specific voyage irrespective of time involved in it. In this case, risk begins only when the ship starts on a voyage.
2) Time Policy:
In this policy, the subject matter is insured for a definite period of time. A time policy cannot be for a period exceeding one year, but it may contain a continuation clause. The continuation clause means that if the voyage is not completed within the specified time, the risk shall be covered until the voyage is completed.
3) Mixed Policy:
This policy is the combination of voyage and time policy. It therefore covers the risk of both, particular voyage and for a specified period of time.
4) Valued Policy:
Under this policy, goods are insured for an agreed value between the insurer and insured at the time of taking policy. This facilitates easy settlements of claims in case of such items where it is difficult to assess the real market value.
5) Blanket Policy:
This policy is taken for the maximum limit of the required amount of protection and full amount of premium is paid in the beginning of the policy. This policy describes the nature of goods insured, specific route, ports and places of voyage. It covers multiple risks on one property or it covers many properties under the policy.
6) Port Risk Policy:
Port risk policy covers all types of risks of a vessel while it is anchored at the port for a particular period of time. This policy is applicable till the departure of the vessel from the port.
7) Composite Policy:
This type of policy is purchased from more than one insurers. The liability of each insurer is separate and distinct. This policy is taken when the amount of insurance is very high.
8) Single Vessel Policy:
This policy is suitable for small ship owner having only one ship or having one ship in different fleets. It covers the risk of one vessel of the insured.
9) Fleet Policy and Block Policy:
In fleet policy, several ships belonging to one owner are insured under the same policy. In block Policy, the cargo owner is protected against damage or loss of cargo in all modes of transport through which his/her cargo is carried i.e. covering all the risks of rail, road, and sea transport etc.
3) Explain types of warehouses?
Solution:
1) Private Warehouses:
The private warehouses are owned and operated by big manufacturers and merchants to fulfill their own storage needs. Big business firms that need large storage capacity on a regular basis and who can afford the money, construct and maintain their private warehouses.
2) Public Warehouses:
A public warehouse is a specialized business establishment that provides storage facilities to the general public for a certain charge. It may be owned and operated by an individual or a cooperative society. It works under a license from the government in accordance with the prescribed rules and regulations. Public warehouses provide storage facilities to small manufacturers and traders at a low cost. These warehouses are well constructed and guarded round the clock to ensure safe custody of goods. Public warehouses are generally located near the junctions of railways, highways, and waterways.
3) Bonded Warehouses:
Bonded warehouses are licensed by the government to accept imported goods for storage until the payment of customs duty. These warehouses work under the control of customs authorities. The warehouse keeper is required to give an undertaking or ‘Bond’ that it will not allow the goods to be removed without the consent of the customs authorities. The goods are held in bond and cannot be withdrawn without paying the customs duty.
4) Duty paid Warehouses:
If an importer faces any problem in the transportation of goods, after making payment of duty, then goods can be stored at a duty-paid warehouse. All duty paid warehouses are public warehouses that are available to all importers. Duty paid warehouses help the importer as proper care of goods is taken, processing of goods can be done like sorting, re-packing, etc.
5) Government Warehouses:
These warehouses are owned, managed, and controlled by central and state governments or public authorities. It is difficult for small farmers, businessmen, traders to own a warehouse, so these government warehouses assist them in storing their goods at a nominal charge.
6) Co-operative Warehouses:
These warehouses are owned, managed, and controlled by co-operative societies. They mainly provide warehousing facilities at the most economical rates. These types of warehouses are very useful for farmers and traders and the general public.
7) Cold storage Warehouses:
Cold storage warehouses provide facilities for perishable commodities like fruits, flowers, vegetables, dairy products, etc. In cold storage warehouses, goods are stored and refrigerated at very low temperatures so as to preserve them and use them in the future. International trade has become possible due to these warehouses.
4) Explain the utility function of banks?
Solution:
Utility Functions:
A commercial bank performs utility functions for the benefits of its clients. It provides certain facilities or products to its clients as follow:
1) Issue of Drafts and Cheques:
A draft /cheque is an order to pay money from one branch of bank to another branch of the same bank or another bank. A bank issue drafts to its account holders as well as non-account holders whereas cheques are issued only to the account holders. Bank charges commission for issuing a bank draft.
2) Locker Facility:
This is a common utility function of any commercial bank. The bank provides locker facilities for the safe custody of valuables, documents, gold ornaments, etc.
3) Project Reports:
A bank may prepare project reports and feasibility studies on behalf of the clients. Project reports enable the business firm to obtain funds from the market and to obtain clearance from government authorities.
4) Gift Cheques:
Banks issue gift cheques and gold coins to account holders as well as to non-account holders. The gift cheques/ coins can be used by the clients for the purpose of gifting on occasions like weddings, birthdays, etc.
5) Underwriting Services:
A commercial bank may underwrite the issue of securities issued by companies. If the shares are not fully subscribed, the underwriting bank agrees to take up the unsubscribed portion of the securities.
6) Gold related Services:
Nowadays many banks are providing gold services to their customers. Banks are commercially buying and selling gold or gold ornaments from customers on a large scale basis. Some bank also provides advisory services to its customers in terms of gold funds, gold ETF, etc.
5) Explain the modes of traditional communication?
Solution:
The modes of traditional communications are as follows.
I) Postal Services:
The postal services in India come under the Department of Post and Telegraph which is part of the Ministry of Communication and Information and Technology.
Types of postal services:
Mail Services: Mail services are further classified as follows:
Inland Letter: Inland letter card is used for transmission within India only. Inland letter ensures the confidentiality of the message.
Envelope: It enables sending confidential messages as well as enclosures like cheques, photos, resumes, etc.
Parcel: Parcels of a specified size and weight can be sent across the country as well as outside the country. Anything can be sent in a parcel except those items which are prohibited. Parcels can be insured.
Book-Post: Printed books, magazines, journals, etc. can be sent through a book post.
2. Specialized Postal Services: Specialized Postal Services are further classified as follows:
Business Post: Business Post provides complete mailing solutions right from mail preparation to mail delivery.
Logistics Post: Logistics Post provides business customers a cost-effective and efficient solution, which manages the entire value chain from collection to storage to transmission to distribution across the country.
Bill Mail Service: Communications in the nature of financial statements, bills, monthly account bills, or any such other items of similar nature may be posted by a service provider to customers at least once in 90 days under this service.
3. Money Remittance Services: Money Remittance Service is further classified as follows:
Electronic Money Transfer (eMO):
A money order is an order issued by the Post Office for the payment of a sum of money to the person whose name is mentioned in the money order. It is sent through the agency of the Post Office.
Instant Money Order (IMO):
IMO is an instant web-based money transfer service through Post Offices (IMO Centre) in India between two resident individuals in Indian territory.
International Money Transfer:
Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.
4) Retail Services: Retail Services are further classified as follows:
Retail Post:
Under Retail Post, a range of services is offered including the collection of electricity bills, collection of taxes, collection of other bills and fees for the Government, etc.
e-Post:
Through ePOST, customers can send their messages to any address in India with a combination of electronic transmission and physical delivery through a network of more than 1,55,000 Post Offices.
6) Explain the disadvantages of air transport?
Solution:
Disadvantages:
1) It does not provide door to door service.
2) It gets heavily affected by adverse weather conditions.
3) It is comparatively slow-moving transport.
4) More investment cost is involved in terms of ports, ships, maintenance, etc.
5) It is subject to the perils of the sea.
7) Describe the role of transport?
Solution:
Meaning:
Transportation is the movement of people, animals, and goods from one location to another location or it can be defined as a means of carrying goods and people from one place to another place.
Modes of transport:
Generally, transportation is carried through various modes such as railways, roads, waterways, and the airway. Modes of transport are as follows:
1) Road Transport:
Roads are means that connect people and places on the surface of the land. It provides all-over connectivity in any terrain as compared to other modes of transport. Various means of transport are used under road transport such as bullock carts, cycles, rickshaws, buses, cars, etc.
2) Rail Transport:
Transportation of goods and passengers on rail lines through trains is called as rail transport. It occupies an important place inland transport system of our country and is the most dependable mode of transport to carry goods and passengers over long distances.
3) Air Transport:
Air transport carries goods and passengers through airways by using different aircraft like passenger aircraft, cargo aircraft, helicopters, etc. This is the fastest mode of transport but it does not provide door to door service. Air transport is also a suitable mode in case of an emergency like war, medical, natural calamities, rescue operations, etc. Air transport is classified as domestic transport and international transport.
4) Water Transport:
Water transport refers to the movement of goods and passengers on waterways by using various means like boats, steamers, launches, ships, etc. With the help of these means, goods and passengers are carried to different places, both within as well as outside the country. When the goods and passengers move inside the country, it is known as inland water transport. When the different means of transport are used to carry goods and passengers on the ocean or sea route, it is known as ocean or sea transport.
5) Monorail and Metro:
These are the types of rapid transit systems found in urban areas. These types of transport are energy efficient and less polluting too. A monorail is a railway in which the track consists of a single rail or a beam. The term is also used to describe the beam of the system, or the trains traveling on such a beam or track.
6) Ropeway:
Ropeway refers to a mode of transport that connects two places on the hills or across a valley or river. In ropeway transport, trolleys move on wheels connected to a rope and are used for carrying passengers or goods.
7) Pipeline Transport:
Pipeline transport sends goods through a pipe, most commonly liquid and gases. Short-distance systems exist for sewage, slurry, or water while long-distance networks are used for petroleum and natural gas.
8) What are the functions of warehouses?
Solution:
A warehouse is defined as “an establishment for the storage or accumulation of goods.”
Warehousing refers to the storage of goods and consists of all those activities which are connected with the storage and preservation of goods. It is a means of storing goods.
Functions of Warehouses:
1) Storage:
This is the basic function of warehousing. Surplus commodities that are not needed immediately can be stored in warehouses. They can be supplied as and when needed by the customers.
2) Price Stabilization:
Warehouses play an important role in the process of price stabilization. It is achieved by the creation of time utility by warehousing. In warehouses, a usually large stock of goods is kept.
3) Risk bearing:
When the goods are stored in warehouses they are exposed to many risks in the form of theft, deterioration, fire, etc. Warehouses are constructed in such a way that they minimize these risks.
4) Financing:
Loans can be raised from the warehouse keeper or from financial institutions against the goods stored by the owner. Goods act as security for the warehouse keeper or for financial institutions. In this manner, warehousing acts as a source of finance for the businessmen for meeting business operations.
5) Grading and Packing:
Warehouses nowadays provide the facilities of packing, processing, and grading of goods. Goods can be packed in convenient sizes as per the instructions of the owner.
6) Transportation:
Warehouses can provide transportation facility to bulk depositors. It collects goods from the place of production and also sends goods to the place of delivery at the request of the owner.
7) Time and Place Utility:
Warehouses create time utility by preserving the goods until they are demanded. It also creates place utility by providing the goods at the place, where they are required.
8) Processing:
Certain commodities are not consumed in the form they are produced. Processing is required to make them consumable. e.g. Paddy is polished, fruits are ripened, etc. Sometimes warehouses undertake such activities on behalf of the owners.