Sectors of the Indian Economy - Class 10 Study Notes pdf
Financial system
1. DEVELOPMENT OF FINANCIAL SYSTEM
Dr. NGPASC
COIMBATORE | INDIA
Dr. N.G.P. ARTS AND SCIENCE COLLEGE
(An Autonomous Institution, Affiliated to Bharathiar University, Coimbatore)
Approved by Government of Tamil Nadu and Accredited by NAAC with 'A' Grade (2nd Cycle)
Dr. N.G.P.- Kalapatti Road, Coimbatore-641048, Tamil Nadu, India
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2. Dr. NGPASC
COIMBATORE | INDIA
INTRODUCTION
Set of complex
Financial surpluses and financial deficit
Well-knit financial system
Savers and investors
Money, credit and finance Flow of funds
FS
3. Dr. NGPASC
COIMBATORE | INDIA
Flow of funds
Flow of Financial Services
Income and Financial Claims
Suppliers of
Funds (mainly
households)
Seekers of funds
(mainly business
firms and
government)
4. Definition
Dr. NGPASC
COIMBATORE | INDIA
According to Van Horne, "financial
system allocates savings efficiently in
an economy to ultimate users, either
for investment in real assets or for
consumption".
5. Dr. NGPASC
COIMBATORE | INDIA
Financial
Institutions Financial
System
Regulatory
Body
Financial
Services
Financial
Instruments
Financial
Markets
10. Objective
Dr. NGPASC
COIMBATORE | INDIA
1. Investments are concerned with risk and return
2. Investments involve long term commitments
3. Investment objective is high risk and high return
4. Money market is for long term investments
5. Mutual funds are market intermediaries
6. Debt securities are mostly ownership based