Unit I: Nature and Role of Financial system – Introduction; structure of financial system; Equilibrium in financial markets; financial system and economic development; Theories of Impact of Financial developments
Unit I - Introduction to Financial Institutions and Markets
Financial System- implies a set of Complex and closely connected institutions, markets, transactions, agents, practices, claims and liabilities in a economy What is the financial system concerned with? Money Credit Services finance Functions of Financial system Financial Institutions- act as mobilisers and depositories of saving and as the custodian of finance. Provides various financial services to the society. Financial institution A financial institution is an institution whose primary source of profits is through financial asset transactions Classifications of Financial Institutions Banks Stock Brokerage Firms Non Banking Financial Institutions Building Societies Asset Management Firms Credit Unions Insurance Companies
Get MBA study materials, articles, order business templates and stock market updates from or www.easymbaguide.com or www.easymbaguide.jimdo.com or www.easymbaguide.blogspot.com. Give your valuable feedback easymbaguide@gmail.com. Join easymbaguide@yahoogroups.com to get updates
Functions of Financial Institutions The principal function of financial institutions is to collect funds from the investors and direct the funds to various financial services providers in search for those funds. Financial Markets A financial market is a market in which financial assets are traded. In addition to enabling exchange of previously issued financial assets Six basic functions of financial markets Borrowing and Lending Price Determination Information Aggregation and Coordination Risk Sharing Liquidity Efficiency Financial Instruments Financial instruments are cash, evidence of an ownership interest in an