Public finance studies the income-getting and income-spending activities of the public bodies or the state. Private finance deals with the way a private person gets and spends his income. There are certain differences between the principles underlying public finances and those of private finances. These are explained below.

1.  Adjustment of Income and … Read more

The banks whose operations mainly influence the money supply are called commercial bunks, because in the early days, most bank borrowers were engaged in commerce rather than manufacturing. These banks perform a variety of service functions. My bank receives my paycheck every month, allows me to draw checks on the account, and sends me a … Read more