Basis for Comparison CRR SLR
Meaning CRR is the percentage of money which the bank has to keep with the Central Bank of India in the form of cash. The bank has to keep a certain percentage of their Net Time and Demand Liabilities in the form of liquid assets as specified by RBI.
Form Cash Cash and other assets like gold and government securities viz. Central and State government securities.
Effect It controls excess money flow in the economy. It helps in meeting out the unexpected demand of any depositor by selling the bonds.
Maintainence with Central Bank of India i.e. RBI. Bank itself.
Regulates Liquidity in the economy. Credit growth in the economy.
Basis for Comparison Training Education
Meaning The process of inculcating specific skills in a person is training. Theoretical learning in the classroom or any institution is education.
What is it? It is a method of skill development. It is a typical form of learning.
Based on Practical application Theoretical orientation
Perspective Narrow Wide
Involves Job experience Classroom learning
Term Short term Comparatively long term
Prepares for Present job Future job
Objective To improve performance and productivity. To develop a sense of reasoning and judgement.
Teaches Specific task General concepts
Basis for Comparison Training Development
Meaning Training is a learning process in which employees get an opportunity to develop skill, competency and knowledge as per the job requirement. Development is an educational process which is concerned with the overall growth of the employees.
Term Short Term Long Term
Focus on Present Future
Orientation Job oriented Career oriented
Motivation Trainer Self
Objective To improve the work performances of the employees. To prepare employees for future challenges.
Number of Individuals Many Only one
Aim Specific job related Conceptual and general knowledge
Basis for Comparison Capital Expenditure Revenue Expenditure
Meaning The expenditure incurred in acquiring a capital asset or improving the capacity of an existing one, resulting in the extension in its life years. Expenses incurred in regulating day to day activities of the business.
Term Long Term Short Term
Capitalization Yes No
Shown in Income Statement & Balance Sheet Income Statement
Outlay Non-recurring Recurring
Benefit More than one year Only in current accounting year
Earning capacity Seeks to improve earning capacity Maintain earning capacity
Matching concept Not matched with capital receipts Matched with revenue receipts
Basis of Difference
Income and Expenditure A/c
Profit and Loss A/c
1. Definition Income and expenditure account is account which is prepared for finding the excess of income over expenditures or excess of expenditures over incomes.
Profit and loss account is the account which is prepared for finding net profit or net loss.
2. Not for Profit organisation or Business
Income and expenditure account is prepared by not -for profit organisation whose aim is not to earn money.
Profit and loss account is prepared by business whose aim is to earn money.
3. Basis of Preparation
Income and expenditure account is prepared on the basis of receipt and payment account and some other information
Profit and loss account is prepared on the basis of trial balance and some other information.
4. Balance of Account When we compare debit and credit side of this account, balance will be surplus or deficit.
The balance of profit and loss account will be net profit or net loss.
Basis for Comparison Apprenticeship Internship
Meaning A training program conducted in an industry or undertaking where the trainee gets a chance to learn and earn at the same time is known as apprenticeship. An internship is a training program whereby the college students get a chance to work in the respective field and gain real world experience.
What is it? Work based training Work based learning
Time Duration Long Comparatively short
Provided to Potential employees Students
Part of Vocational Education and Training May or may not be a part of formal education.
Trainees Apprentices Interns
Training ends with Job to the employee Experience to the employee
Pay Always paid May or may not be paid
Orientation and Induction Yes No
Basis for Comparison Recruitment Selection
Meaning Recruitment is an activity of searching candidates and encouraging them apply for it. Selection refers to the process of selecting the best candidates and offering them job.
Approach Positive Negative
Objective Inviting more and more candidates to apply for the vacant post. Picking up the most suitable candidate and rejecting the rest.
Key Factor Advertising the job Appointment of the candidate
Sequence First Second
Process Vacancies are notified by the firm through various sources and application form is made available to the candidate. The firm makes applicant pass through various levels like submitting form, written test, interview, medical test and so on.
Contractual Relation As recruitment only implies the communication of vacancies, no contractual relation is established. Selection involves the creation of contractual relation between the employer and employee.
Method Economical Expensive
Basis for Comparison Fixed Deposit Recurring Deposit
Meaning A deposit scheme in which a particular sum of money is invested with the bank for a fixed period, is known as Fixed Deposit. A financial product in which money is deposited to a particular account at regular intervals for a long time is Recurring Deposit.
Investment Lump sum Installments
Minimum amount to be deposited Slightly high Nominal
Returns Comparatively high Low
Advantage It enables the depositor to earn higher returns on his funds. It develops the habit of saving in depositor.
Basis for Difference Saving Account Current Account
Meaning Saving bank account is an account meant for individuals who like to save for meeting their future financial requirements. Current account refers to a running account, in which there is no limit on the operation, during a working day.
Objective To encourage savings of a person. To support frequent and regular transactions.
Suitable for Individual Businessman or company
Interest Paid Not paid
Withdrawals Limited Unlimited
Passbook Provided by banks Not issued by banks.
Overdraft Not allowed Allowed
Opening balance Less amount is required to open a savings bank account. High amount is required for opening a current account.
Basis for Comparison Money Market Capital Market
Meaning A segment of the financial market where lending and borrowing of short term securities are done. A section of financial market where long term securities are issued and traded.
Nature of Market Informal Formal
Financial instruments Treasury Bills, Commercial Papers, Certificate of Deposit, Trade Credit etc. Shares, Debentures, Bonds, Retained Earnings, Asset Securitization, Euro Issues etc.
Institutions Central bank, Commercial bank, non-financial institutions, bill brokers, acceptance houses, and so on. Commercial banks, Stock exchange, non-banking institutions like insurance companies etc.
Risk Factor Low Comparatively High
Liquidity High Low
Purpose To fulfill short term credit needs of the business. To fulfill long term credit needs of the business.
Time Horizon Within a year More than a year
Merit Increases liquidity of funds in the economy. Mobilization of Savings in the economy.
Return on Investment Less Comparatively High |
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