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factor of financial services

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INTRODUCTION
A financial system plays a vital role in the economic growth of the country. It intermediates
between the flow of funds belonging to those who save a part of their income and those who
invest in productive assets. It mobilizes and usefully allocates scarce resources of a country.
A financial system is a complex, well-integrated set of sub-systems of financial institutions,
markets, instruments and services which facilitates the transfer and allocation of funds efficiently
and effectively.
ROLE OF FINANCIAL SYSTEM
Indian Financial System
Money Market
Capital Market
Financial Statement
Analysis
Non-Securities Market
Securities Market
Mutual Funds
Fixed Deposits,
Bank Deposits,
Provident Fund
Primary Market
Secondary Market
IPO’S
Book Building
Private
Placement
Equity Market
Debt Market
Commodity
Market
Futures &
Options
Market

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The role of the financial system is to promote savings & investments in the economy. It has a vital
role to play in the productive process and in the mobilization of savings and their distribution
among the various productive activities. Savings are the excess of current expenditure over
income. The domestic savings has been categorized into three sectors, household, government
& private sectors.
The savings from household sector dominates the domestic savings component. The savings will
be in the form of currency, bank deposits, non bank deposits, life insurance funds, provident
funds, pension funds, shares, debentures, bonds, units & trade debts. All of these currency &
deposits are voluntary transactions & precautionary measures. The savings in the household
sector are mobilized directly in the form of units, premium, provident fund, and pension fund.
These are the contractual forms of savings. Financial actively deals with the production,
distribution & consumption of goods and services. The financial system will provide inputs to
productive activity. Financial sector provides inputs in the form of cash credit & assets in financial
for production activities.
The function of a financial system is to establish a bridge between the savers and investors. It
helps in mobilization of savings to materialize investment ideas into realities. It helps to increase
the output towards the existing production frontier. The growth of the banking habit helps to
activate saving and undertake fresh saving. The financial system encourages investment activity
by reducing the cost of finance risk. It helps to make investment decisions regarding projects by
sponsoring, encouraging, export project appraisal, feasibility studies, monitoring & execution of
the projects.
FINANCIAL MARKETS
Financial Markets are the centre or arrangements that provide facilities of buying and selling of
financial claims and services. The corporations, financial institutions, individuals and government
trade in financial products on these markets either directly or through brokers and dealers on
organized exchanges or off-exchanges. The participants on demand and supply sides of these
markets are financial institutions, brokers, agents, dealers, borrowers, lenders, savers and others
who are inter-linked by the laws, contracts and communication networks.

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INTRODUCTION A financial system plays a vital role in the economic growth of the country. It intermediates between the flow of funds belonging to those who save a part of their income and those who invest in productive assets. It mobilizes and usefully allocates scarce resources of a country. A financial system is a complex, well-integrated set of sub-systems of financial institutions, markets, instruments and services which facilitates the transfer and allocation of funds efficiently and effectively. ROLE OF FINANCIAL SYSTEM Indian Financial System Money Market Capital Market Financial Statement Analysis Non-Securities Market Securities Market Mutual Funds Fixed Deposits, Bank Deposits, Provident Fund Insurance Primary Market Secondary Market IPO’S Book Building Private Placement Equity Market Debt Market Commodity Market Futures & Options Market The role of the financial system is to promote savings & investments in the economy. It has a vital role to play in the productive process and in the mobilization of savings and their distribution among the various productive activities. Savings are the excess of current expenditure over income. The domestic savings has been categorized into three sectors, household, government & private sectors. The savings from household sector dominates the domestic savings component. The savings will be in the form of currency, bank deposits, non bank deposits, life insurance funds, provident funds, pension funds, shares, debent ...
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