Money Market and Capital Market
Financial Market
Financial Market is a transfer process between lender and debtor through which the transfer of financial fund can be done easily. It provides safe exchange of financial assets. It provides liquidity to investors in the sale of financial assets and also ensures the minimum cost of exchange and related information.
Components of Indian Financial Market
Components of Indian financial market are as follows
Money Market It is used by a wide array of participants from a company raising money by selling commercial paper into the market to an investor purchasing CDs as a safe place to park money in the short term.
Capital Market It is a market for buying and selling equity and debt instruments. Capital market channel savings and investment among suppliers of capital such as retail investors and institutional investors and users of capital like businesses, government and individuals.
Commodity Market It is a market that trades in primary rather than manufactured products. Soft commodities are agricultural products such as wheat, coffee and sugar. Hard commodities are mined such as gold, rubber and oil.
Derivatives Market It is the financial market for derivatives, financial instruments like future contracts or options, which are derived from other forms of assets.
Insurance Market Objective of this market is the equitable transfer of the risk of a loss from one entity to another. It is a form of risk management primarily used to hedge against the risk of a contingent uncertain loss.
Foreign Exchange Market The Foreign Exchange Market (Forex, FX or currency market) is a global decentralised market for the trading of currencies. The main participants in this market are the larger international banks.
Money Market
The cluster of financial institutions that deal in short term securities and loans, gold and foreign exchange are termed as money market. The money market is a key component of the financial system, as it is the function of monetary operations conducted by the Central Bank in its pursuit of Monetary policy objectives. It is a market for short term funds with maturity ranging from overnight to one year and includes financial instruments that are deemed to be close substitutes of money.
Functions of Money Market
The money market performs three broad functions which are as follows
It provides an equilibrating mechanism for demand and supply of short term funds.
It enables borrowers and lenders of short term funds to fulfill their borrowing and investment requirements at an efficient market clearing price.
It provides an avenue for Central Bank intervention in influencing both quantum and cost of liquidity in the financial system, thereby transmitting Monetary Policy impulses to the real economy.
Types of Money Market
In Indian money market. Reserve Bank of India plays the central role, as it regulates and controls the money market. Indian money market is mainly divided into two parts
Insurance
Insurance is a means of protection from any financial loss. Under an insurance contract; a insurer indemnifies the other insured party against specific amount of loss, occurring from specified eventualities within a specific period, provided a fee called premium is paid.
Since the inception of the insurance sector, the number of participants in the insurance industry has gone up from 7 insurers in 2000 to 60 insurers as on 30th Sep, 2015.
Insurance Sector in India
Insurance industry includes two sectors, i.e. life insurance and general insurance. Life insurance relates to the life of the policy holder. General insurance deals with everything else. This type of insurance typically covers' Losses caused by theft or damage.
Health and property insurance come under general insurance. Life insurance in India was introduced by Britishers. A British firm in 1818, established the Oriental Life Insurance Company at Calcutta (now Kolkata).
General Insurance Corporation
In 1972, the government nationalised the 107 private sector companies in the general insurance segment and a government company called the General Insurance Corporation of India (GIC). It was formed in 1972.
Main Holding Companies
Company
Place
National Insurance Company Limited
Kolkata, Headquarters
New India Assurance Company Limited
Mumbai, Headquarters
Oriental Insurance Company Limited
New Delhi, Headquarters
United India Insurance Company Limited
Chennai Headquarters
A number of economic reforms were introduced in Nov, 2000 and the GIC was notified as the Indian Reinsurer on 1 April, 2003. In March, 2002, the GIC was withdrawn from the holding company status of the 4 Public Sector General Insurance companies.
Life Insurance Corporation of India (LIC)
LIC was established on 1st Sep, 1956, which set the pace of nationalisation of the insurance sector under the Stewardship of CD Deshmukh. It has head office at Mumbai and eight zonal offices, the newest being at Patna. LIC is also operating internationally through branch offices in Fiji, Mauritius and UK and through joint venture companies in Bahrain, Nepal, Sri Lanka, Kenya and Saudi. Arabia. In 2008, its wholly owned subsidiary was opened in Singapore. It also extends assisiance for development of infrastructure facilities like housing, rural electrification, water supply, sewerage, etc,
In addition, it extends resource support to other financial institutions through subscription to their shares and bonds, etc.
Nationalised Insurance Companies
Life Insurance Corporation of India
General Insurance Corporation of India
National Insurance Co. Ltd.
Oriental insurance Co. Ltd.
New India Assurance Co. Ltd,
United India Insurance Co. Ltd.
Entry of Private Company in Insurance
In 1993, Malhotra Committee, headed by former Finance Secretary and RBI Governor RN Malhotra, was formed to evaluate the Indian insurance industry and recommend its future direction. The A4alhotra Committee was setup with the objective of complementing the more...
Industry, Trade and International Organisation
Industry
Industry refers to an economic activity concerned with the processing of raw materials and manufacturing of goods in factories. Industries are often classified based on their principal product e.g. steel industry, automobile industry, textile industry, etc. The products of industries can be consumer goods (goods, which are finally consumed by consumers) like textiles, cosmetics etc., or producer goods (goods used by manufacturers for producing some other goods) like machinery, tools, equipment, etc.
Industrial Development
The concept of 'Industrial Policy’ is comprehensive and it covers all those procedures, principles, policies rules and regulations which control the Industrial undertakings of a country and shape pattern of industrialization. It incorporates fiscal and monetary policies, the tariff policy, Labour policy and government's attitude not only towards external assistance, but towards the public and private sectors also. When India achieved independence in 1947, the national consensus was in favour of rapid industrialization of the economy, which was seen not only as the key to economic development, but also as economic sovereignty.
Industrial Policy
An industrial policy provides guidelines for the effective coordination of the activities of various sectors of the economy. It is an official strategic effort of a country to encourage the development and growth of part or all of the manufacturing and sector as well as other sectors of the economy. In the subsequent years, India's Industrial Policy evolved through successive Industrial Policy Resolutions and Industrial Policy Statements. Specialised priorities for industrial development were also laid down in the successive five year plans.
New Industrial Policy, 1991
The Government of India announced the New Industrial Policy on 24th July, 1991. The main objective of this policy is to unshackle the Indian industrial economy from administrative and legal controls. Its main aim is to raise industrial
efficiency to the international level through substantial deregulation of the industrial sector of the country.
Industries Requiring Compulsory Licensing (Presently)
Distillation and brewing of alcoholic drinks.
Cigars and cigarettes of tobacco and manufactured tobacco substitutes.
Electronic aerospace and defence equipment of all types.
Industrial explosives including match boxes.
Specific hazardous chemicals viz,
(i) Hydrocyanic acid
(ii) Phosgene
(iii) Isocyanates and diisocyanates of hydrocarbon
Index of Industrial Production (IIP)
IIP is an index for measuring the level of industrial activity in the country. The all India IIP is a composite indicator that measures the short term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period. It is complied and published monthly by the Central Statistics Office (CSO), with the time lag of six weeks from the reference month.
The Index of Industrial Production (IIP), with 2004-05 (Now, 2011-12) as base is the leading indicator for industrial performance in the country. Compiled on a monthly basis, the current IIP series based on 399 products/product groups is aggregated into three broad groups of more...
Tax and Budget
Tax
Tax is the main source of state income, which is compulsorily paid to the state. Government obtains tax from citizen and spends it on their welfare and common good.
Aims of Taxation
At present, the main aim of taxation is not to secure finances for the expenditure, but to reduce the economic inequalities of the income.
Following are the main aims of taxation
To secure money for expenditure
Regulation of economy
Equitable distribution of income
Different Types of Tax Policy
At global level, these are many different types of tax policy.
Following are the popular types
Progressive Tax Structure Under this type of tax structure with increasing income, the tax liability of a tax payer increases not only in absolute terms but also as a proportion of his income.
Regressive Tax Structure When with the increasing income, percentage of tax decreases, it is termed a regressive tax of the tax liability of the tax payer.
Proportional Tax Structure The tax structure of an economy is termed as proportional, if the tax liability of a tax payer increases in the same proportion as the increases in his income.
Digressive Tax System Under this type of tax structure, rate of taxation increases with the increase in income upto a limit but the rate of tax remains the same after that limit.
e.g. Upto a income of Rs. 10 lakh the rate of taxation may be different according to varying incomes, but it may remain 30% for income above Rs. 10 lakh.
Tax Revenue in India
Tax is a compulsory payment by the citizens to the government to meet the public expenditure. It is legally imposed by the government.
On the tax payer and in no case tax payer can deny to pay taxes to government, can be direct, indirect tax, wealth tax, gift tax etc.,, are example of direct tax and sales tax, excise duty, custom duty etc., are example of indirect tax.
Generally, tax is divided into two parts which are as follows
Direct tax
Indirect tax
Principal Direct and Indirect Tax in India
Direct Tax
Indirect Tax
Personal income tax
Excise duty
Corporation tax
Custom duty
Wealth tax
Sales tax
Gift tax
Service tax
Land revenue
Value added tax
Professional tax
Passenger tax
Stamp duty and
registration charges
Entertainment tax
Securities trade tax
Electricity duty
Banking cash
transaction tax
Motor vehicle tax
Direct Tax
The direct tax is that, which is borne by the person on whom it is levied. A direct tax cannot more...
Introduction to Computer
A computer is an electronic machine that accepts data from the user, processes the data by performing calculations and operations on it and generates the desired output as a result. The term computer is derived from the Latin word 'computare' which means 'to compute'.
Generally, computer is the combination of Hardware and Software which converts data into information. Computer operates on set of instructions only, they cannot think as human being. Computer has an ability to store and execute set of instructions called program which makes it extremely distinguishable and versatile than calculators. Computer makes people's lives easier and more comfortable.
Functioning of a Computer
Computer Performs four basic functions -which are as follows
Input Information or data that is entered into a computer is called input. It sends data and instructions to the Central Processing Unit (CPU).
Processing It is the sequence of actions taken on data to convert it into information which is meaningful to the user. It can be calculations, comparisons or decisions taken by the computer.
Output It makes processed data available to the user. It is mainly used to display the desired result to the user as per input instructions.
Storage It stores data and programs permanently. It is used to store information during the time of program execution and possible to get any type of information from it.
Features of Computer
The key features of computer are as follows
Speed The computer can process data very fast at the rate of millions of instructions per second.
Accuracy Computers provide a high degree of accuracy. They respond to the user as per the input instructions.
Storage Capacity Computers are capable to store huge amount of data which depends on the capacity of hard disk.
Versatility Computers can do different types of work simultaneously. They can perform multiple tasks at a same time.
Automatic Once the instruction to do any work is given to the computer, the computer does its work automatically by itself.
Diligency Unlike human beings, a computer is free from monotony, tiredness, lack of concentration, etc and can work for hours without creating any errors.
Secrecy Leakage of information is reduced by creating login system with password protection.
Reliability Computer are more reliable than human beings. Computers always produce exact results. The possibility of errors occur only if the input is wrong, i.e. the computers never make mistakes of their own accord.
Plug and Play Computers have the ability to automatically configure a new hardware and software component.
Terms Related to Computer
Hardware It is the collection of physical elements that constitute a computer system. It is a comprehensive term for all the physical parts of a computer, e.g. display screens, disks, keyboards, etc.
Software It is a set of programs and procedures. Software tells the hardware what to do and how to accomplish more...
Computer Architecture
Computer architecture deals with the functional behaviour of a computer system as viewed by a programmer. It can also be described as the logical structure of the system unit that housed electronic components. The computer architecture forms the backbone for building successful computer systems.
Components of Computer
A computer consists of following main components
Input/Output (I/O) Unit
Central Processing Unit
Memory Unit
Input Unit
The computer accepts coded information through input unit by the user. It is a device that is used to give required information to the computer, e.g. keyboard, mouse, etc.
An input unit performs the following functions
(i) It accepts the instructions and data from the user.
(ii) It converts these instructions and data in computer in acceptable format.
(iii) It supplies the converted instructions and data to the computer system for further processing.
Output Unit
This unit sends the processed results to the user. It is mainly used to display the desired result to the user as per input instruction, e.g. video monitor, printer and plotter, etc.
The following functions are performed by an output unit
(i) It accepts the results produced by the computer which are in coded form and hence cannot be easily understood by us.
(ii) It converts these coded results to human acceptable form.
(iii) It supplies the converted results to the user.
Central Processing Unit (CPU)
It consists of set of registers, arithmetic logic unit and control unit, which together interpret and execute instructions in assembly language.
The primary functions of the CPU are as follow
(i) The CPU transfers instructions and input data from main memory to registers, i.e. internal memory.
(ii) The CPU executes the instructions in the stored sequence.
(iii) When necessary, CPU transfers output data from registers to main memory.
Central Processing Unit is often called the brain of computer. The CPU is fabricated as a single Integrated Circuit (1C) and is also known as microprocessor.
A CPU controls all the internal and external devices and performs arithmetic and logic operations.
The CPU consists of following main sub-systems
Arithmetic Logic Unit
ALU contains the electronic circuitry that executes all arithmetic and logical operations on the available data.
ALU uses registers to hold the data that is being processed.
Most ALUs can perform the following operations
(a) Logical operations (AND, NOT, OR, XOR)
(b) Arithmetic operations (addition, subtraction, multiplication and division).
(c) Bit-shifting operations (shifting or rotating a word by a specified number of bit to the left or right with or without sign extension).
(d) Comparison operations (=, <, < =, >, > =)
Registers
These are special purpose and high speed temporary memory units. Registers are not referenced by their address, but are directly accessed and manipulated by the CPU during execution. Registers store data, instructions, address and intermediate results of processing. The number and size of registers more...
Computer Hardware
Computer hardware refers to the physical components of a computer that can be seen and touched by the user. By the use of these hardware devices, it made very easy for the computer for processing its data, store and retrieve. Hardware is one of the basic and necessary part of a computer system. Computer hardware also includes communication bus, ports, input devices, output devices, etc.
Input Devices
An input device can be defined as an electro mechanical device that allows the user to feed data into the computer for analysis and storage and to give commands to the computer. The data is entered into the main memory through the input devices. They accept instructions from the user and convert the accepted instructions into the machine language.
Some of the commonly used input devices are described below
Keyboard
It is one of the most common input devices. The user can type text and command using this device. The layout of the keyboard was borrowed from the regular typewriter with some additional keys. Keyboard is used to enter data or information in a computer system, which may be in numeric form or alphabetic form. When key is pressed, keyboard interacts with a keyboard controller and keyboard buffer. Keyboard controller stores the code of pressed key in keyboard buffer. There are different types of keyboard such as QWERTY, DVORAK and AZERTY.
Types of Keys on Keyboard
The keys are categorised under the following groups
(a) Alphanumeric Keys include the alphabet keys (A, B, C, ..., Z) and number keys (0, 1, 2, 3, .... 9).
(b) Numeric Keys are located at the right hand side of the keyboard. They consist of digits and mathematical operators.
(c) Function Keys are the programmable keys, i.e. the programs can assign some specific actions. They are numbered from F1 to F12.
(d) Cursor Control Keys include four directional (left, right, up, down) arrow keys that are arranged in a inverted T formation between the alphanumeric and numeric keypad. Above the arrow keys there are four more keys to control the cursor. These are as follows
Home It is used to return the cursor to the beginning of the line or the beginning of a document.
End It moves the cursor to the end of line.
Page Up When it is pressed, the page view will be moved up one page and cursor goes to the back page.
Page Down When it is pressed, the page view will be moved down one page and cursor goes to the next page.
(e) Other Keys A keyboard contains some other keys such as follows
Control Key It performs a special operation with the combination of other keys.
Enter Key It is used to finish an entry and begin the new entry in a document.
Computer Memory
The computer memory is one of the most important elements in a computer system. It stores data and instructions required during the processing of data and output results. Storage may be required for a limited period of time, instantly or for an extended period of time. It also relates to many devices that are responsible for storing data on a temporary or a permanent basis.
Memory Hierarchy
The hierarchical arrangement of storage in current computer architectures is called the memory hierarchy. The computer uses a hierarchy of memory that is organised in a manner to enable the fastest speed and largest capacity of memory as shown in figure.
Parameters of Memory
Some related parameters of memory are as follow
(i) Storage Capacity It is representative of the size of memory. The capacity of internal memory and main memory can be expressed in terms of number of words or bytes.
(ii) Access Modes A memory is comprised of various memory locations. The information from these memory locations can be accessed randomly, sequentially and directly.
(iii) Access Time The access time is the time required between the desired modes for a read or write operation till the data is made available or written at the desired location.
(iv) Physical Characteristics In this respect, the devices can be categorised into four main categories as electronic, magnetic, mechanical and optical.
(v) Permanence of Storage Its permanence is high for future use in magnetic materials.
Types of Memory
In general, the memory is classified into two categories as follows
(a) Primary memory or Main memory
(b) Secondary memory or Auxiliary memory
Primary Memory
The memory unit that communicates directly with the CPU is called main memory or the internal memory. The primary memory allows the computer to store data for immediate manipulation and to keep track of what is currently being processed.
It is volatile in nature, it means that when the power is turned OFF, the contents of the primary memory are lost forever. Primary memory can be further classified in two categories which are as follows
Random Access Memory
It is also known as read/write memory that allows CPU to read as well as write data and instructions into it. RAM (Random Access Memory) is used for the temporary storage of input data, output data and intermediate results.
There are two categories of RAM as follows
(a) Dynamic RAM (DRAM) It is made up of memory cells where each cell is composed of one capacitor and one transistor. DRAM must be refreshed continually to store information. DRAM is slower, less expensive and occupies less space on the computer's motherboard.
(b) Static RAM (SRAM) It retains the data as long as power is provided to the memory chip. It needs not be refreshed periodically. SRAM uses multiple transistors for each memory cell. It does not use capacitor. more...
Data Representation
Data representation refers those methods which are used internally to represent information stored in a computer. Computers store lots of different types of information as numbers, text, graphics, sounds, etc.
Number System
It defines a set of values that is used to represent quantity. Digital computers internally use the binary number system to represent data and perform arithmetic calculations.
Types of Number System
The number systems generally used by a computer are as follows
Binary Number System
This system is very efficient for computers, but not for humans. It contains only two unique digits 0's and 1's. It is also known as Base 2 system. The binary numbers 0 and 1 are called a bit. The computer always calculates input in binary form. e.g. (10101 )2
Here, 2 represents base of binary number.
A list of the first several power of 2 is
\[2{}^\circ =1,\,{{2}^{1}}=2,\,{{2}^{2}}=4,\,{{2}^{3}}=8,\,{{2}^{4}}=16,\,{{2}^{5}}=32,\]
\[{{2}^{6}}=64,\text{ }{{2}^{7}}=128,\text{ }{{2}^{8}}=256,\text{ }{{2}^{9}}=512,\]
\[{{2}^{10}}=1024,\text{ }{{2}^{11}}=2048~\]
Decimal Number System
It consists of 10 digits from 0 to 9. These digits can be used to represent any numeric value. It is also g known as Base 10 system or positional number system, e.g. \[{{(1275)}_{10,}}\]\[{{(10406)}_{10}}~\]
Octal Number System
It consists of 8 digits from 0 to 7. It is also known as Base 8 system. Each position of the octal number represents a successive power of eight.
A list of the first several powers of 8 s
\[8{}^\circ =1,{{8}^{1}}=8,\,\,{{8}^{2}}=64,{{8}^{3}}=512,{{8}^{4}}=4096,{{8}^{5}}=32768\]
Representation of Octal
Numbers in Binary
Octal
Binary Digits
0
000
1
001
2
010
3
011
4
100
5
101
6
110
7
111
Hexadecimal Number System
It provides us with a shorthand method of working with binary numbers. There are 16 unique digits available in this system.
These are 0 to 9 and A to F, where A denotes 10, B denotes 11....... F denotes 15. It is also known as Base 16 system or simply Hex. So, each position of the hexadecimal number represents a successive power of 16.
A list of the first several powers of 16 is
\[16{}^\circ =1,{{16}^{1}}=16,{{16}^{2}}=256,\]
\[{{16}^{3}}=4096,{{16}^{4}}=65536~\]
Decimal, Binary, Octal and Hexadecimal Equivalents
Computer Software
Software is a collection of computer programs and related data that provide the instructions for telling a computer what to do and how to do. A software is a interface between the user and the computer. It is a set of instructions, programs that are used to give command to the hardware. It is responsible for controlling, integrating and managing the hardware components of a computer system and for accomplishing specific tasks.
Types of Software
Software can be divided into two major categories
System software
Application software
System Software
It consists of several programs, which are directly responsible for controlling, integrating and managing the individual hardware components of a computer system. System software also provides the interface between the user and components of the computer. The purpose of system software is to insulate the applications programmer as much as possible from the detail of the particular complex computer being used. Depending on the functionality, the system software can be further divided into two major categories; system management program and system utilities.
System Management Program
It includes an integrated system of programs, which manages the operations of the processor, controls input/output, manages storage resources and provides various support services. Some common examples of system management programs are operating system and device drivers.
(a) Operating System It consists of programs, which control, coordinate and supervise the activities of the various components of a computer system. Its function is to provide link between the computer hardware and the user. Operating system performs all internal management functions (disk access, memory management, task scheduling and user interfacing) and ensures systematic functioning of a computer system. It provides an environment to run the programs, e.g. MS-DOS, Windows XP/2000/98, Unix, Linux, etc.
The operating system performs the following functions
It recognises input from keyboard, sends output to the display screen.
It makes sure that programs running at the same time do not interfere with each other.
It is also responsible for security, ensuring that unauthorised users do not access the system.
BIOS
The Basic Input/Output System (BIOS) is commonly known as System BIOS. The BIOS controls various electronic components within the main computer system. The initial function of the BIOS is to initialize system devices such as the RAM, hard disk, CD/DVD drive, video display card and other hardwares,
(b) Device Drivers A software, which is written with the objective of making a device functional when it is connected to the computer is called device driver. It is a system software that acts like an interface between the device and the user.
Every device, whether it is a printer, monitor, mouse or keyboard has a driver program associated with it for its proper functioning.
System Utilities
These programs perform tasks related to more...
Functioning of a Computer
Computer Performs four basic functions -which are as follows
Components of Computer
A computer consists of following main components
It is one of the most common input devices. The user can type text and command using this device. The layout of the keyboard was borrowed from the regular typewriter with some additional keys. Keyboard is used to enter data or information in a computer system, which may be in numeric form or alphabetic form. When key is pressed, keyboard interacts with a keyboard controller and keyboard buffer. Keyboard controller stores the code of pressed key in keyboard buffer. There are different types of keyboard such as QWERTY, DVORAK and AZERTY.
Types of Keys on Keyboard
The keys are categorised under the following groups
(a) Alphanumeric Keys include the alphabet keys (A, B, C, ..., Z) and number keys (0, 1, 2, 3, .... 9).
(b) Numeric Keys are located at the right hand side of the keyboard. They consist of digits and mathematical operators.
(c) Function Keys are the programmable keys, i.e. the programs can assign some specific actions. They are numbered from F1 to F12.
(d) Cursor Control Keys include four directional (left, right, up, down) arrow keys that are arranged in a inverted T formation between the alphanumeric and numeric keypad. Above the arrow keys there are four more keys to control the cursor. These are as follows
Parameters of Memory
Some related parameters of memory are as follow
(i) Storage Capacity It is representative of the size of memory. The capacity of internal memory and main memory can be expressed in terms of number of words or bytes.
(ii) Access Modes A memory is comprised of various memory locations. The information from these memory locations can be accessed randomly, sequentially and directly.
(iii) Access Time The access time is the time required between the desired modes for a read or write operation till the data is made available or written at the desired location.
(iv) Physical Characteristics In this respect, the devices can be categorised into four main categories as electronic, magnetic, mechanical and optical.
(v) Permanence of Storage Its permanence is high for future use in magnetic materials.
Types of Memory
In general, the memory is classified into two categories as follows
(a) Primary memory or Main memory
(b) Secondary memory or Auxiliary memory
Primary Memory
The memory unit that communicates directly with the CPU is called main memory or the internal memory. The primary memory allows the computer to store data for immediate manipulation and to keep track of what is currently being processed.
It is volatile in nature, it means that when the power is turned OFF, the contents of the primary memory are lost forever. Primary memory can be further classified in two categories which are as follows
Random Access Memory
It is also known as read/write memory that allows CPU to read as well as write data and instructions into it. RAM (Random Access Memory) is used for the temporary storage of input data, output data and intermediate results.
There are two categories of RAM as follows
(a) Dynamic RAM (DRAM) It is made up of memory cells where each cell is composed of one capacitor and one transistor. DRAM must be refreshed continually to store information. DRAM is slower, less expensive and occupies less space on the computer's motherboard.
(b) Static RAM (SRAM) It retains the data as long as power is provided to the memory chip. It needs not be refreshed periodically. SRAM uses multiple transistors for each memory cell. It does not use capacitor. more... 
System Software
It consists of several programs, which are directly responsible for controlling, integrating and managing the individual hardware components of a computer system. System software also provides the interface between the user and components of the computer. The purpose of system software is to insulate the applications programmer as much as possible from the detail of the particular complex computer being used. Depending on the functionality, the system software can be further divided into two major categories; system management program and system utilities.
System Management Program
It includes an integrated system of programs, which manages the operations of the processor, controls input/output, manages storage resources and provides various support services. Some common examples of system management programs are operating system and device drivers.
(a) Operating System It consists of programs, which control, coordinate and supervise the activities of the various components of a computer system. Its function is to provide link between the computer hardware and the user. Operating system performs all internal management functions (disk access, memory management, task scheduling and user interfacing) and ensures systematic functioning of a computer system. It provides an environment to run the programs, e.g. MS-DOS, Windows XP/2000/98, Unix, Linux, etc.
The operating system performs the following functions
