INTERNATIONAL MONETARY FUND( IMF ), (BACKGROUND), SMART ZOMBI'S.

BACKGROUND:

On July 1, 1944 the U.S. invited 44 countries to attend united Monetary & Financial conference at Bretton Woods, New Hampshire. The conference prepared not only the articles of proposed IMF but also the World Bank ( IBRD ). The agreement signed by 27 countries became effective on December 27, 1945. In May, 1946 the IMF became operational. The articles were amended in 1969, 1978, and 1992 following the collapse of fixed exchange rate system and oil price in early 70s. The first amendment gave rise to the creation of Special Drawing Rights ( SDR ). The second amendment was on the review of the IMF's responsibilities. The third was on empowering the Fund to suspend the membership of its member that failed to fulfill its obligations. In mid 90s the IMF provided $ 8 billion to Mexico and $ 9 billion to Russia and Ukraine. These were the largest ever packages in the history of IMF which squeezes its financial resources. The Group of seven summit in Halifax, arranged in June 1995 recommended to double the IMF's general arrangements to borrow up to $ 55 million.

IMF has adopted a strategy to lend to those countries on following conditions.

1. Public spending cuts including defense expenditure.

2. Credit controls.

3. Trade liberalization.

The IMF is coming close to act as an international central bank. It performs many central banking functions as:

1. It acts as a lender of last resort at the international level.

2. It has the ability to create international money (e.g. SDR).

3. It has the ability to act as a clearing house in the settlement of multinational deficits and surpluses.

INTERNATIONAL FINANCIAL INSTITUTIONS, SMART ZOMBI'S.

There are two main institution,

1: "INTERNATIONAL MONETARY FUND."

HIGHLIGHTS:

Date of establishment December 27,1945
Beginning of Operations May 1946
Registered office Washington
Funds:
May 1946 $ 8.8 billion
January 1961 $14.74 billion
April 1963 $15.23 billion
Annual meeting of the board September each year
Members, 2007 185
Total staff, 2005 2693 from 141 countries
Area department African,Asia and Pacific, Middle
East, Central Asia, Western Hemisphere
Total Credit, April 30,2006 $28.28 billion or SDR 19.227 billion
Total Arrangements, April 30,
2006 between IMF & Members 10 Standby
1 Extend
27 Poverty reduction & Growth
Facility (PRGF)
Value of 38 Arrangements $ 16.642 billion or SDR 11.313 billion





2: "WORLD BANK, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT(IBRD)".


HIGHLIGHTS:

Date of establishment July, 1944
Date of commencing business June 1946
Head office Washington
Total members 139(in 1982)
146(in 1985)
174(in 1994)
185(in 2007)
Management 1. Board of governors:
Governors and alternate governors
one each from member countries
2. 24 executive directors
Authorized Capital in 1944 $ 10 billion
Authorized Capital in April, 1988 $ 142 billion
Paid up Capital June 30, 2005 $ 11,483 million
Outstanding borrowings in 2005 $ 105.691 billion
Issue of loans 2005 $ 107.549 billion

HOW TO OPEN A BANK ACCOUNT, SMART ZOMBI'S.

STEPS TO OPEN ACCOUNT:


The procedure of opening an account with the bank is quite simple and easy as discussed below.


SELECTION OF BANK &; TYPE OF ACCOUNT:

Having made up mind to open a bank account the prospective account holder will select a bank and its branch on the type of account to open. He will choose one from among saving, current or
fixed deposit accounts. Savings account serves the purpose of saving, current account is used for selling business transaction, and fixed deposit is meant for earning regular income.


APPLICATION BLANK:

The bank manager will provide the client an application form to fill in the blanks for getting such information as:

Name, father's name, address, profession, amount to be deposited, introducer's data, date, and signature. After receiving the filled-up form, the bank will scrutinize it and allocate an account number.


REFERENCE CARD:

Along with the application blank, the bank also gives a blank reference card which requires two signatures of the account holder as a specimen to be kept at the bank. When a cheque is presented at the bank, it matches the signature on the cheque with the one on the reference card. This practice offers safety to the bank and the account holder as well. The card also provides a space for account holder's special instruction.

REFERENCE:

At the time of opening an account the bank requires one or two reference who are already account holder of the same bank. The reference will sign the name and write his account in the columns provided in the application blank. This reference ensures the bank's confidence in the new account holder.

ALLOTMENT OF ACCOUNT NUMBER:

After thorough security of the application form, the bank will allot an account number through which all deposits and withdrawals will be carried out.


PROVISION OF PAY-IN-SLIP:

At this stage account has been opened. Now the bank will supply a pay-in-slip to the account holder who will use it to deposit the money.


MAKING DEPOSIT:

After having the bank account number allotted and received the pay-in-slip the account holder will fill in the blanks of the slip and deposit the money at the cash


SUPPLY OF A CHEQUE BOOK:

After the first deposit is made, the bank supplies a cheque book that contains up to 25 leaves for savings account, and 25 or more for current account. Fixed deposit account doesn't carry cheque books because it is non checking account.

EXCISE DUTY:

Cheque book is supplied after account holder has paid excise duty imposed by the GOVT on cheques. This duty is paid either in cash or is deducted from the balance of the account.


ENCLOSURES:

Along with the application blank a photocopy of the identity card of the account holder should be attached. For identification purpose the bank ma ask to enclose a photograph also.

HOME SAVINGS ACCOUNT, SMART ZOMBI'S.

HOME SAVINGS ACCOUNT:

This type of account offers the facility to the account holder to save money right at home and put it in the locker provided by bank. The key of the locker remains with the bank which sends its officer every week to collect the amount from the locker. Now this type is no longer in practice

FIXED DEPOSIT ACCOUNT, SMART ZOMBI'S.

FIXED DEPOSIT ACCOUNT:

This account is opened for a definite period of time without the expiry of which the amount cannot be withdrawn. the rate of interest is higher than that of savings account. The greater the period for which money is deposited the higher the interest rate is offered. The period ranges from three months to ten years. It is usually operated by widows, pensioners, salaried persons, etc. to get regular income. In Pakistan, this account is subject to ZAKAT deduction.