Professional Documents
Culture Documents
Presented by
Naina karra
Roll no (38)
O
ë n institutional framework existing in a country to
enable financial transactions.
ë It allows the transfer of money between savers and
borrowers.
ë It encourages saving and investment.
ë n efficient function of financial system facilities the
free flow of funds
ë The Responsibility of financial system is to mobiles
saving.
ë It facilities expansion of market.
In finance, financial system is the system that
allows the transfer of money between savers
and borrowers. It comprises a set of complex
&closely interconnected financial institution,
markets, services, practices and
transactions´.
|
ë Provision of liquidity.
ë Mobilization of saving.
ë Promoting growth in economy.
ë To arrange for creation and distribution of
money and credit.
£
| O
ë financial market includes money market, capital
market, and forex market.
ë It is important component of financial system.
ë Buying and selling of securities
ë Stock exchange is e.g. of financial market.
ë It is classified into four parts
1. Money market
2. Capital market
3. Debt market
4. Forex market
|
ë Institutions are banks, insurance companies,
mutual funds.
ë It provides financial services.
ë It is responsible for transfer of funds.
ë It facilities flow of money.
ë Mobilization of savings
ë ct as financial intermediates.
|
ë Security exchange board of India (SEBI)
ë Reserve bank of India (RBI)
ë Central Board of Direct Taxes (CBDT)
ë Central Board of excise and Customs
|
ë Financial services are provided by financial
institutions. Banks, insurance companies.
ë It includes MC and liability Management
Companies.
ë Ensuring efficient distribution
ë Help in development of fund raised& in
decision making.
ë Contributes towards the growth and
development.
M
|
. Banking and financial services
|
ë Financial instruments are also called as financial
securities
ë Transfer form one to another
ë They posses liquidity
ë These instruments may be short term or for long
term
ë Tax benefits
ë It is classified into
1. Primary securities
2. Secondary securities
á
á