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Def An establishment that focuses on dealing with financial transactions, such as investments, loans and deposits. Long-term financial institutions Primary financial institutions:- rise the bulk of there resources from the original savers e.g. household ,business Secondary financial institutions:- depend mainly on the primary institutions, the central bank and government e.g. Industrial financial corporations (IFCI)
FINANCIAL INTERMEDIARIES
Financial intermediaries can be defined as all economic units whose main function is holding of and trading in financial assets. They issue one kind of securities and purchase another kind(deal and hold securities) Divided into Bank or monetary financial intermediaries: Banks intervene in the flow of funds from RBI to non financial lenders . Non bank financial intermediaries: Create non monetary financial claims by issuing securities such as equities.
Organised Market
Unorganised Market
Capital Market
Money Market
Industrial Govt. Long term Call Commercial Money Bill Securities Securities Loans Market Market Market Market Market
Primary Market
Secondary Market
Market Market for for Money Lenders, Mortgages Financial Indigenous Guarantees Bankers etc.
FINANCIAL INSTRUMENTS
A financial instrument is a tradable asset of any kind; either cash, evidence of an ownership interest in an entity, or a contractual right to receive or deliver cash or another financial instrument. Financial instruments refer to those document which represent financial claim on assets. Financial instruments can also be called Financial securities.
Financial Instruments
Financial Securities
Term
Primary Securities
Secondary Securities
Short Term
Medium Term
Long term