This document provides an overview of the financial system and markets. It defines the financial system as the collection of markets, institutions, and regulations that facilitate the flow of funds from savers to borrowers globally. The financial system performs important functions like facilitating savings, providing liquidity and credit, managing risk, and enabling policy goals. It also describes the various types of financial markets including money markets, capital markets, and derivatives markets; and the key factors like credit, speculation and arbitrage that tie these markets together.
The financial system channels savings from those who save to those who borrow to invest and grow the economy. It performs important functions like providing liquidity, credit, and risk protection. There are different types of financial markets, including money markets for short term loans, capital markets for long term financing, primary markets for new securities, and secondary markets for trading existing securities.
The financial system moves scarce funds from savers to borrowers to finance investment and economic growth. It performs key functions like channeling savings into investment, providing liquidity and means of payment, managing risk, and supplying credit. Financial markets allocate resources, distribute income, and determine interest rates, directing the flow of funds. Together the global financial system and markets enable production, consumption and economic development.
The document provides an overview of financial systems and markets. It defines key terms like financial system, formal and informal financial sectors, components of a formal financial system including financial institutions, markets, instruments, services and currency. It describes the functions of a financial system like payments, savings, liquidity, risk management and government policy. It also discusses elements of a financial system such as lenders and borrowers, financial intermediaries, instruments, markets, money creation and price discovery. Finally, it provides details about the structure and classification of the Indian financial system.
The document provides an introduction to financial systems, including definitions, key components, and functions. It discusses that a financial system consists of institutions, markets, instruments, and services that facilitate the transfer of funds. The main components are financial institutions like banks, markets where assets are traded, various financial services, and instruments/assets like stocks, bonds, and mutual funds. Financial systems play an important role in allocating resources and facilitating economic growth.
The document summarizes the circular flow of income and expenditure in a market economy. It describes how households supply resources like labor to businesses in input markets in exchange for income, and then households use that income to demand goods and services from businesses in product markets. This circular flow results in continuous production, income, and demand. The document then notes that modern economies are mixed, with governments participating through taxes, spending, and policies that influence markets.
The capital market connects the surplus units with the deficit units. It means that the funds are channelized from those who have excess capital to those who need it.
Financial Institution Chapter one PPT slide.pptxetebarkhmichale
KCB MSME Loan Offer
Our KCB MSME Loan offer has been designed for our business customers in response to the current harsh economic times. We’re providing a financial cushion to help maintain liquidity for your working capital or to enable you to acquire trading assets.
Benefits
What we need from you
• Be an active KCB account holder for at least 6 months
• Business account annual turnover of between KES 500,000 to KES 100 Million.
• Must be a registered business (MSME) in Kenya
• Provide Business registration certificate
• Provide a valid business permit or trade license from the county government.
• Have a tax compliance certificate
• Borrower must have been in operation (viably) for at least 2 years.
• Must be a credit worthy MSME.
• Have a positive CRB listing
• Be compliant with the bank’s Environmental Risk Management Guidelines where applicable
Visit your nearest branch or contact your relationship manager to apply.
*Terms and Conditions Apply
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The financial system channels savings from those who save to those who borrow to invest and grow the economy. It performs important functions like providing liquidity, credit, and risk protection. There are different types of financial markets, including money markets for short term loans, capital markets for long term financing, primary markets for new securities, and secondary markets for trading existing securities.
The financial system moves scarce funds from savers to borrowers to finance investment and economic growth. It performs key functions like channeling savings into investment, providing liquidity and means of payment, managing risk, and supplying credit. Financial markets allocate resources, distribute income, and determine interest rates, directing the flow of funds. Together the global financial system and markets enable production, consumption and economic development.
The document provides an overview of financial systems and markets. It defines key terms like financial system, formal and informal financial sectors, components of a formal financial system including financial institutions, markets, instruments, services and currency. It describes the functions of a financial system like payments, savings, liquidity, risk management and government policy. It also discusses elements of a financial system such as lenders and borrowers, financial intermediaries, instruments, markets, money creation and price discovery. Finally, it provides details about the structure and classification of the Indian financial system.
The document provides an introduction to financial systems, including definitions, key components, and functions. It discusses that a financial system consists of institutions, markets, instruments, and services that facilitate the transfer of funds. The main components are financial institutions like banks, markets where assets are traded, various financial services, and instruments/assets like stocks, bonds, and mutual funds. Financial systems play an important role in allocating resources and facilitating economic growth.
The document summarizes the circular flow of income and expenditure in a market economy. It describes how households supply resources like labor to businesses in input markets in exchange for income, and then households use that income to demand goods and services from businesses in product markets. This circular flow results in continuous production, income, and demand. The document then notes that modern economies are mixed, with governments participating through taxes, spending, and policies that influence markets.
The capital market connects the surplus units with the deficit units. It means that the funds are channelized from those who have excess capital to those who need it.
Financial Institution Chapter one PPT slide.pptxetebarkhmichale
KCB MSME Loan Offer
Our KCB MSME Loan offer has been designed for our business customers in response to the current harsh economic times. We’re providing a financial cushion to help maintain liquidity for your working capital or to enable you to acquire trading assets.
Benefits
What we need from you
• Be an active KCB account holder for at least 6 months
• Business account annual turnover of between KES 500,000 to KES 100 Million.
• Must be a registered business (MSME) in Kenya
• Provide Business registration certificate
• Provide a valid business permit or trade license from the county government.
• Have a tax compliance certificate
• Borrower must have been in operation (viably) for at least 2 years.
• Must be a credit worthy MSME.
• Have a positive CRB listing
• Be compliant with the bank’s Environmental Risk Management Guidelines where applicable
Visit your nearest branch or contact your relationship manager to apply.
*Terms and Conditions Apply
What other customers also viewed
Telco Dealer Agents Loan
If you’re a Safaricom dealer or M-PESA agent, the Telco dealer credit facility is designed to h....
Overdraft Facilities
Whether you require temporary overdraft facilities for one-off situations or an annual facility f....
SME Term Loans
Choose between a secured or unsecured loan up to Kes. 250 Million, payable over flexible repaymen....
Retailer Finance
Need to stock up your store? With Retailer Finance, we support your business by financing you to purchase business inventory from your preferred distributor. With no collateral required, you can expand your business and see rising profit margins.
Benefits
What is required
• Existing one-year trading relationship between retailer and distributor
• Detailed profile write-up on the distributor
• Distributor’s 3 years’ audited accounts
• Over 3 months into current year’s management accounts
• CRB reports for the business and the directors
Rates & Fees
• Competitive rates
• Maximum loan limit per retailer – Kes 500,000 per distributor
• Maximum loan limit per retailer – Kes 1,000,000 for all distributors
What other customers also viewed
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Boresha Biashara Loan is specially designed for micro businesses, giving you access to financing,....
Bodaboda/ Tuktuk Loan
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Lesson 5: The Price System and the Mixed EconomyJudy Ann But
This document discusses the price system and mixed economy. It examines how the circular flow of income and expenditures keeps a capitalist economy functioning by allocating resources through prices. While the pure market system has defects like externalities and inequality, the modern mixed economy addresses these through government intervention in markets, provision of public goods, income redistribution, and macroeconomic stabilization. Governments participate in input and product markets, tax households and firms, and provide services to correct market failures and support vulnerable groups.
The document discusses the components of the Indian financial system, including financial institutions, financial markets, financial instruments, and financial services. It specifically focuses on the debt market as a key component. The debt market can be classified into the government securities market and the bond market. Government securities include instruments issued by central and state governments, while the bond market includes instruments issued by public and private sector entities. The debt market plays an important role in the Indian economy by efficiently mobilizing and allocating resources, financing government development activities, and transmitting monetary policy signals. It also provides greater funding avenues and reduces borrowing costs.
The document discusses the key components and functions of a financial system. It describes a financial system as a network that allows the exchange of funds between participants like lenders, borrowers, and investors. The main components include financial institutions, markets, instruments, services, and currency. Key functions of a financial system are to facilitate payments, savings, liquidity, risk management, and influence of government policies. Financial systems are important for economic development by channeling savings into investments.
The document provides an overview of financial markets and systems. It discusses the functions of financial markets, types of markets including stock markets, bond markets, and money markets. It also describes market participants, types of financial institutions like commercial banks and their roles, and financial instruments. Financial regulation and Bangladesh's financial system are also briefly covered.
I share this presentation on financial system that can help you to understand all about - how our financial system work and what are there important pillars that can help to build the economy of the world. Through the ppt I also attached the international financial central ranks ranking 2023 (GDP) of all over the world.
Topic 8_Money and Financial Markets (1).pdfamalik32
Financial markets transfer funds from those with excess funds to those with a shortage. They promote economic efficiency and growth. Interest rates are important as they affect consumers, businesses, and the overall economy. The bond market enables borrowing, and interest rates are determined here. Stocks represent ownership in corporations and trade in stock markets. The foreign exchange market determines currency exchange rates. Financial institutions like banks reduce transaction costs and risks by acting as intermediaries between lenders and borrowers. Money supply increases often lead to inflation as more money chases the same amount of goods and services. Central banks conduct monetary policy to manage money supply, interest rates, and inflation.
This document provides information about a student's assignment submission for a course on Financial Markets and Institutions. It includes the student's details, assignment details such as course code, submission date, and signature. It also includes sections for the tutor to fill out including date of receiving assignment, marks obtained, comments, and date of returning the assignment with the tutor's signature. The assignment questions ask about the importance of financial markets, components of the financial system, roles of the central bank, and functions of money.
This document provides an overview of the financial system of Bangladesh. It discusses the key components of the financial system, including financial markets, financial institutions, regulatory authorities, and non-governmental organizations. It also describes the main types of financial markets in Bangladesh, distinguishing between the money market and the capital market. The money market provides short-term financing for liquidity purposes, while the capital market allows entities to raise longer-term funds for projects and investments.
1. The financial system provides seven key functions: saving, wealth, liquidity, credit, payments, risk management, and implementing economic policy.
2. Financial markets allow for the exchange of financial assets and include money markets for short-term loans and capital markets for long-term investments.
3. Financial markets play important roles in price discovery, providing liquidity, and reducing transaction costs. They can be classified based on the type, maturity, and seasoning of financial claims, as well as whether transactions involve immediate or future delivery.
The document discusses financial services and provides details on various types of financial services like banking, insurance, mutual funds, and financial consultancy. It outlines the functions of these services and discusses advantages of the growing financial services industry in India like its strong regulatory framework, high savings rate, favorable demographics and fast growing economy. The financial services sector in India is growing at 15% annually and its contribution to the country's GDP is rising.
Money plays a vital role in the economy and daily life. It serves static roles like being a medium of exchange, unit of account, store of value, and standard for deferred payments. Money also plays dynamic roles like facilitating specialization and trade, acting as the basis for credit, enabling capital formation and economic growth, and allowing easy calculation of incomes. Overall, money is essential for consumers, producers, the government, and society by simplifying transactions and resource allocation throughout the economy.
Money plays a vital role in the economy and daily life. It serves static roles like a medium of exchange, unit of account, store of value, and standard for deferred payments. It also plays dynamic roles like facilitating consumer choice, business and production activities, specialization and trade. Money is essential for the government, credit system, capital formation, and solving key economic problems. It allows calculation of national income and factors' rewards. Overall, money is the lifeblood of modern economies and societies.
The document provides an overview of the Australian financial markets syllabus for Year 11 Economics students. It describes the key topics students will examine, including different types of financial markets and products, institutions that regulate markets, interest rates, borrowers and lenders. It also defines important financial market concepts such as bonds, securities, primary and secondary markets, and the role of financial intermediaries in connecting lenders and borrowers.
Chapter 02_Overview of the Financial SystemRusman Mukhlis
This chapter provides an overview of the financial system, including the functions of financial markets and intermediaries in channeling funds from lenders to borrowers. It describes the structure of markets, such as debt versus equity, and primary versus secondary markets. It also discusses the internationalization of markets and the role of regulation in ensuring stability and transparency.
Financial markets - instruments and securitiesShyama Shankar
Financial markets facilitate the exchange of financial assets and funds between participants. They provide a place for financial instruments like stocks, bonds, and loans to be traded. Financial markets are divided into money markets, which deal in short-term debt instruments, and capital markets, which focus on long-term financing through trading of stocks and bonds. Together, financial markets help allocate capital resources and promote economic growth.
Indian financial system and role of financial institutionsSiddharth Gupta
The Financial System of any country refers to a system that provides
smooth and efficient relationship between the borrowers and the lenders.
This system aims at establishing effective medium for generating funds from
various sources. A financial system may be defined as a set of institutions,
instruments and markets which fosters savings and channels them to their
most efficient use. The main function of this financial system is to assemble
wide spread savings from household individuals and industrial firms.
FEATURES OF INDIAN FINANCIAL SYSTEM
-It plays a vital role in economic development of a country.
-It encourages both savings and investment.
-It links savers and investors.
-It helps in capital formation.
-It helps in allocation of risk.
-It facilitates expansion of capital markets.
-It aids in financial deepening and financial broadening.
FINANCIAL INSTITUTIONS
Financial institutions are the participants in a financial market. They are business organizations dealing in financial resources. They collect resources by accepting deposits from individuals and institutions and lend them to trade, industry and others. They buy and sell financial instruments.
and many more things about the Indian financial system.
1. Financial markets allow individuals and organizations to exchange financial assets and funds through intermediation. Money markets deal in short term debt up to 1 year, while capital markets trade longer term equity and debt.
2. Financial institutions serve as intermediaries in these markets since they are imperfect. Major institutions include commercial banks, savings institutions, credit unions, finance companies, mutual funds, securities firms, hedge funds, insurance companies and pension funds.
3. Interest rates are determined by the interaction of supply and demand in the loanable funds market. Factors like expected inflation, economic growth, and money supply influence rates by shifting supply and demand curves. The term structure of interest rates shows the relationship between yields of different term securities.
This document provides an overview of a course on financial institutions, markets and services. It includes:
- A syllabus that outlines 5 units covering topics like the Indian financial system, banking and non-banking institutions, financial markets, financial services, and stock exchanges.
- Descriptions of the contents of each unit, including definitions and components of the financial system, different types of financial institutions and markets, and various financial services and products.
- A list of 10 reference books and texts for the course. The document is intended as lecture notes for an MBA course on this subject area.
Lecture 2_Formation and Types of Contract.pptxRiadHasan25
Here are some examples of different types of contracts formed in daily life based on the lecture:
- Rental agreement for an apartment - Executory bilateral contract
- Marriage registration - Executed bilateral contract
- Buying goods online - Express e-commerce contract
- Taking a bus - Implied unilateral contract once payment is made
- Insurance policy - Contract of indemnity/adhesion contract
- Loan agreement involving a guarantor - Contract of guarantee
- Leaving luggage with a friend - Contract of bailment
- Verbal agreement to sell goods - Oral contract
- Employment contract - Standing/continuous contract
This document discusses how firms raise capital and the venture capital financing process. It states that firms can raise capital through borrowing, equity financing, or both, depending on their size, life cycle stage, and growth prospects. Venture capital generally finances new, high-risk ventures and provides not just funding but active participation in running the firm. Venture capitalists invest in stages and typically take equity in the company in exchange for financing. Choosing the right venture capitalist depends on factors like financial strength, management style, references, contacts, and exit strategy.
Lesson 5: The Price System and the Mixed EconomyJudy Ann But
This document discusses the price system and mixed economy. It examines how the circular flow of income and expenditures keeps a capitalist economy functioning by allocating resources through prices. While the pure market system has defects like externalities and inequality, the modern mixed economy addresses these through government intervention in markets, provision of public goods, income redistribution, and macroeconomic stabilization. Governments participate in input and product markets, tax households and firms, and provide services to correct market failures and support vulnerable groups.
The document discusses the components of the Indian financial system, including financial institutions, financial markets, financial instruments, and financial services. It specifically focuses on the debt market as a key component. The debt market can be classified into the government securities market and the bond market. Government securities include instruments issued by central and state governments, while the bond market includes instruments issued by public and private sector entities. The debt market plays an important role in the Indian economy by efficiently mobilizing and allocating resources, financing government development activities, and transmitting monetary policy signals. It also provides greater funding avenues and reduces borrowing costs.
The document discusses the key components and functions of a financial system. It describes a financial system as a network that allows the exchange of funds between participants like lenders, borrowers, and investors. The main components include financial institutions, markets, instruments, services, and currency. Key functions of a financial system are to facilitate payments, savings, liquidity, risk management, and influence of government policies. Financial systems are important for economic development by channeling savings into investments.
The document provides an overview of financial markets and systems. It discusses the functions of financial markets, types of markets including stock markets, bond markets, and money markets. It also describes market participants, types of financial institutions like commercial banks and their roles, and financial instruments. Financial regulation and Bangladesh's financial system are also briefly covered.
I share this presentation on financial system that can help you to understand all about - how our financial system work and what are there important pillars that can help to build the economy of the world. Through the ppt I also attached the international financial central ranks ranking 2023 (GDP) of all over the world.
Topic 8_Money and Financial Markets (1).pdfamalik32
Financial markets transfer funds from those with excess funds to those with a shortage. They promote economic efficiency and growth. Interest rates are important as they affect consumers, businesses, and the overall economy. The bond market enables borrowing, and interest rates are determined here. Stocks represent ownership in corporations and trade in stock markets. The foreign exchange market determines currency exchange rates. Financial institutions like banks reduce transaction costs and risks by acting as intermediaries between lenders and borrowers. Money supply increases often lead to inflation as more money chases the same amount of goods and services. Central banks conduct monetary policy to manage money supply, interest rates, and inflation.
This document provides information about a student's assignment submission for a course on Financial Markets and Institutions. It includes the student's details, assignment details such as course code, submission date, and signature. It also includes sections for the tutor to fill out including date of receiving assignment, marks obtained, comments, and date of returning the assignment with the tutor's signature. The assignment questions ask about the importance of financial markets, components of the financial system, roles of the central bank, and functions of money.
This document provides an overview of the financial system of Bangladesh. It discusses the key components of the financial system, including financial markets, financial institutions, regulatory authorities, and non-governmental organizations. It also describes the main types of financial markets in Bangladesh, distinguishing between the money market and the capital market. The money market provides short-term financing for liquidity purposes, while the capital market allows entities to raise longer-term funds for projects and investments.
1. The financial system provides seven key functions: saving, wealth, liquidity, credit, payments, risk management, and implementing economic policy.
2. Financial markets allow for the exchange of financial assets and include money markets for short-term loans and capital markets for long-term investments.
3. Financial markets play important roles in price discovery, providing liquidity, and reducing transaction costs. They can be classified based on the type, maturity, and seasoning of financial claims, as well as whether transactions involve immediate or future delivery.
The document discusses financial services and provides details on various types of financial services like banking, insurance, mutual funds, and financial consultancy. It outlines the functions of these services and discusses advantages of the growing financial services industry in India like its strong regulatory framework, high savings rate, favorable demographics and fast growing economy. The financial services sector in India is growing at 15% annually and its contribution to the country's GDP is rising.
Money plays a vital role in the economy and daily life. It serves static roles like being a medium of exchange, unit of account, store of value, and standard for deferred payments. Money also plays dynamic roles like facilitating specialization and trade, acting as the basis for credit, enabling capital formation and economic growth, and allowing easy calculation of incomes. Overall, money is essential for consumers, producers, the government, and society by simplifying transactions and resource allocation throughout the economy.
Money plays a vital role in the economy and daily life. It serves static roles like a medium of exchange, unit of account, store of value, and standard for deferred payments. It also plays dynamic roles like facilitating consumer choice, business and production activities, specialization and trade. Money is essential for the government, credit system, capital formation, and solving key economic problems. It allows calculation of national income and factors' rewards. Overall, money is the lifeblood of modern economies and societies.
The document provides an overview of the Australian financial markets syllabus for Year 11 Economics students. It describes the key topics students will examine, including different types of financial markets and products, institutions that regulate markets, interest rates, borrowers and lenders. It also defines important financial market concepts such as bonds, securities, primary and secondary markets, and the role of financial intermediaries in connecting lenders and borrowers.
Chapter 02_Overview of the Financial SystemRusman Mukhlis
This chapter provides an overview of the financial system, including the functions of financial markets and intermediaries in channeling funds from lenders to borrowers. It describes the structure of markets, such as debt versus equity, and primary versus secondary markets. It also discusses the internationalization of markets and the role of regulation in ensuring stability and transparency.
Financial markets - instruments and securitiesShyama Shankar
Financial markets facilitate the exchange of financial assets and funds between participants. They provide a place for financial instruments like stocks, bonds, and loans to be traded. Financial markets are divided into money markets, which deal in short-term debt instruments, and capital markets, which focus on long-term financing through trading of stocks and bonds. Together, financial markets help allocate capital resources and promote economic growth.
Indian financial system and role of financial institutionsSiddharth Gupta
The Financial System of any country refers to a system that provides
smooth and efficient relationship between the borrowers and the lenders.
This system aims at establishing effective medium for generating funds from
various sources. A financial system may be defined as a set of institutions,
instruments and markets which fosters savings and channels them to their
most efficient use. The main function of this financial system is to assemble
wide spread savings from household individuals and industrial firms.
FEATURES OF INDIAN FINANCIAL SYSTEM
-It plays a vital role in economic development of a country.
-It encourages both savings and investment.
-It links savers and investors.
-It helps in capital formation.
-It helps in allocation of risk.
-It facilitates expansion of capital markets.
-It aids in financial deepening and financial broadening.
FINANCIAL INSTITUTIONS
Financial institutions are the participants in a financial market. They are business organizations dealing in financial resources. They collect resources by accepting deposits from individuals and institutions and lend them to trade, industry and others. They buy and sell financial instruments.
and many more things about the Indian financial system.
1. Financial markets allow individuals and organizations to exchange financial assets and funds through intermediation. Money markets deal in short term debt up to 1 year, while capital markets trade longer term equity and debt.
2. Financial institutions serve as intermediaries in these markets since they are imperfect. Major institutions include commercial banks, savings institutions, credit unions, finance companies, mutual funds, securities firms, hedge funds, insurance companies and pension funds.
3. Interest rates are determined by the interaction of supply and demand in the loanable funds market. Factors like expected inflation, economic growth, and money supply influence rates by shifting supply and demand curves. The term structure of interest rates shows the relationship between yields of different term securities.
This document provides an overview of a course on financial institutions, markets and services. It includes:
- A syllabus that outlines 5 units covering topics like the Indian financial system, banking and non-banking institutions, financial markets, financial services, and stock exchanges.
- Descriptions of the contents of each unit, including definitions and components of the financial system, different types of financial institutions and markets, and various financial services and products.
- A list of 10 reference books and texts for the course. The document is intended as lecture notes for an MBA course on this subject area.
Lecture 2_Formation and Types of Contract.pptxRiadHasan25
Here are some examples of different types of contracts formed in daily life based on the lecture:
- Rental agreement for an apartment - Executory bilateral contract
- Marriage registration - Executed bilateral contract
- Buying goods online - Express e-commerce contract
- Taking a bus - Implied unilateral contract once payment is made
- Insurance policy - Contract of indemnity/adhesion contract
- Loan agreement involving a guarantor - Contract of guarantee
- Leaving luggage with a friend - Contract of bailment
- Verbal agreement to sell goods - Oral contract
- Employment contract - Standing/continuous contract
This document discusses how firms raise capital and the venture capital financing process. It states that firms can raise capital through borrowing, equity financing, or both, depending on their size, life cycle stage, and growth prospects. Venture capital generally finances new, high-risk ventures and provides not just funding but active participation in running the firm. Venture capitalists invest in stages and typically take equity in the company in exchange for financing. Choosing the right venture capitalist depends on factors like financial strength, management style, references, contacts, and exit strategy.
Lecturer 6_Sale of Goods Act Basics.pptxRiadHasan25
This document provides an overview of key concepts in the Sale of Goods Act including:
- Definitions of buyers, sellers, and goods according to the Act. Goods can be existing, future, or contingent.
- A sale involves the transfer of ownership from seller to buyer, while an agreement to sell transfers ownership at a future time or upon condition being met.
- Essential elements of a sale contract include moveable goods, monetary exchange, two parties, and formation of the contract terms.
- Hire-purchase agreements involve delivery of goods in exchange for installment payments and hire charges until full payment is made, combining aspects of bailment and agreement to sell.
- The doctrine of caveat emptor places
Entrepreneurship policy measures aim to support entrepreneurs at three stages: pre-start, start-up, and post-start. The policies are designed to increase motivation, opportunity, and skills with the goal of increasing the number of entrepreneurs and new businesses. The document discusses frameworks for formulating national entrepreneurship strategy and lists interventions like optimizing regulations, enhancing entrepreneurship education, improving access to finance, and promoting networking. Models of entrepreneurship and the entrepreneurship system are also briefly mentioned.
A startup is a young company that develops and brings a unique product or service to market, and it involves testing a business idea to turn it into a profitable company. Startups use innovations like new technologies, marketing strategies, or business models to gain an advantage in the market. The document outlines the typical stages of startup development from initial idea to scaling the business through methods like an IPO or acquisition.
This chapter discusses accounting for inventories. It covers determining inventory quantities through physical counts and ownership considerations. Cost flow methods like FIFO, LIFO, and average costing are explained along with their financial statement effects. The chapter also discusses inventory errors and their impact on income statement and balance sheet. Lower-of-cost-or-market principle for inventory valuation is explained as well as analyzing inventory through turnover ratios.
Business intelligence (BI) systems analyze operational data to provide information that can help with management and planning. BI involves extracting data from databases and analyzing it to make informed business decisions. Key components of BI systems include data acquisition, analysis, and publishing results. Common BI tools include reporting tools, data mining tools, and online analytical processing (OLAP). BI infrastructure leverages technologies like Hadoop, in-memory computing, and analytical platforms to handle large, diverse datasets. Common BI users are power users who create reports and casual users who consume them.
1. The document discusses factors that influence exchange rates between currencies, including relative inflation rates, interest rates, income levels, government controls, expectations, and interactions between trade and financial factors.
2. An exchange rate represents the price of one currency expressed in units of another currency, as determined by the demand and supply of each in the foreign exchange market.
3. Institutional investors often take speculative currency positions based on anticipated interest rate and economic condition movements in different countries.
1) Organization development aims to improve organizational effectiveness and employee well-being through planned interventions based on behavioral science and democratic values.
2) There are several theories of planned organizational change including Lewin's three-step model of unfreezing, moving, and refreezing; action research involving diagnosis, analysis, feedback, and evaluation; and appreciative inquiry focusing on an organization's strengths.
3) Planned change aims to help organizations adapt to their changing environments and alter individual and group behaviors through the efforts of change agents. Resistance to change can come from both individuals and the organization and must be addressed.
The document discusses capital structure and financial leverage. It defines capital structure as a firm's mix of debt and equity. Firms can alter their capital structure through activities like paying off debt with stock proceeds. Financial leverage refers to the extent a firm relies on debt financing. While debt provides a tax shield, it also increases the risks of bankruptcy costs if the firm cannot meet its debt obligations. The optimal capital structure balances the tax benefits of debt against the costs of financial distress.
This document discusses various aspects of product design including trends, stages of the design process, reasons for redesign, and design tools and methods. It covers topics like standardization, reliability, robust design, concurrent engineering, quality function deployment, the Kano model, design thinking, and service design. The stages of the product development process are outlined as idea generation, feasibility analysis, product and process specifications, prototype development, design review, market testing, introduction, and evaluation.
Introduction To Operations Management.pptxRiadHasan25
This document provides an overview of operations management. It discusses key topics such as (1) the meaning and functions of operations management, (2) differentiating features of production systems like degree of standardization and type of operation, and (3) the scope of operations management including forecasting, quality control, and more. It also examines the roles and decision-making processes of operations managers as well as historical evolutions and recent trends in the field.
The document discusses a thesis that analyzes the impact of corporate social responsibility (CSR) on corporate financial performance (CFP) of financial institutions listed on the Dhaka Stock Exchange in Bangladesh. It outlines the background, objectives, scope, limitations and methodology of the study. The methodology section discusses the population as the listed financial institutions, sampling as 40 institutions using purposeful sampling, data collection of secondary data from annual reports, and analysis using content analysis, descriptive statistics, correlation and regression to analyze the relationship between CSR and CFP indicators like ROA, ROE, EPS, etc. The literature review discusses prior studies that examined the relationship between CSR and CFP.
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4. What is Financial System?
Financial system is the collection of
markets, institutions, laws,
regulations, and techniques through
which bonds, stocks and other
securities are traded, interest rate is
determined, and financial services
are produced and delivered around
the world.
5. Importance of Financial
System
Financial system is one of the most
important inventions of modern society.
Its primary task is to move scarce loan-
able funds from those who save to
those who borrow to buy goods and
services and to make investments in
new equipment and facilities so that the
global economy can grow and increase
the standard of living enjoyed by its
citizens.
6. The financial system determines
both the cost of credit and how
much credit will be available to
pay for different goods and
services we purchase daily.
7. What happens in this system has a
powerful impact on the health of global
economy.
When credit becomes more costly and
less available, total spending for goods
and services falls.
As such, unemployment rises and
economy’s growth slows down as
business cut back their production &
layoff workers.
8. In contrast, when the cost of credit
declines and loan able funds
become more readily available,
total spending in economy
increases, more jobs are created,
and economic growth accelerates.
We can conclude that, financial
system is an integral part of
economic system.
9. The Flows within Economic
System
The basic function of any economy is to
allocate scarce resources- land, labor,
management skill and capital – to
produce the goods and services needed
by the society
The high standard of living depends on
the ability of the global economy to turn
out each day an enormous volume of
food, shelter and other essentials of
modern living.
10. Flows within the Global Economic
System
Land and
other natural
resources
Labor and
managerial
skills
Capital
equipment
Flow of production
Flow of payments
Goods and
services sold
to the public
11. Flows within the Global Economic
System
Producing units
(mainly business firms
and governments)
Consuming units
(mainly households)
12. The Flows within Economic
System
This is a very complex task indeed.
The economy generates a flow of
production in return for a flow of
payments.
Flows of payments and production
within the economic system works as a
circular flow between producing units
(mainly businesses and Govt.) and
consuming units (mainly households).
13. Flows within Economic System
In modern economies, household
provides labor, management, and
natural resources to business firms and
governments in return for income in the
form of wages and other payments.
Income received by the households is
spent to purchase goods and services
from businesses and governments.
14. Flows within Economic System
The result of this spending is a flow of
funds back to producing units as
income.
Income stimulates them to produce
more goods and services in the future.
The circular flow of production and
income is interdependent and never
ending.
16. What is Market?
–It is an institution set up by the
society to allocate resources that
are scarce relative to the demand
for them. Markets are the
channels through which buyers
and sellers meet to exchange
goods, services and resources.
–It answers the economic
problems.
18. Factor Market
– FM are the markets where the
consuming unit sells their labor and
other resources to those producing
units offering the highest prices. The
factor markets allocate factors of
production- land, labor and capital-
and distribute income-wages, rental
payments and so on to the owners of
productive resources.
19. Product Market
In product market different
products for consumption are sold.
Consuming units use most of their
income from factor markets to
purchase goods and services in
product markets.
20. Financial Market
In Financial market transaction of
different types of financial instruments
are made.
It performs a vital function within the
economic system. The financial markets
channel savings to those individuals and
institutions needing more funds for
spending than are provided by their
current incomes.
21. Financial Markets
–The financial markets are the
hearts of financial system
attracting and allocating
savings and setting interest
rates and security prices.
22. Functions of Financial System
Savings Function
Wealth Function
Liquidity Function
Credit Function
Payment Function
Risk Function
Policy Function
23. Savings Function
Bonds, stocks, and other financial
claims sold in the money and capital
market provides a potentially
profitable, low risk outlet for public
savings. This savings flow through
the financial markets into investments
so that more goods and services can
be produced to increase society’s
standard of living.
24. Wealth Function
The financial instruments sold in the
money and capital markets provide an
excellent way to store wealth until
funds are needed for spending.
Unlike normal wealth like car, (which is
subject to depreciation) bonds, stocks
and other financial instruments do not
wear out overtime and usually generate
income.
25. Liquidity function:
Financial system provides a means of
raising funds by converting securities
and other financial assets into cash
balances. Thus the financial markets
provide liquidity for savers who hold
financial instruments but are in need
of money.
26. Credit Function
The financial markets provide credit
to finance consumption and
investment spending in the
economy.
Credit consists of a loan of funds
in return for a promise of future
payment.
This can be consumer credit or
business credit
27. Payment Function
The financial system provides a
mechanism for making
payments to purchase goods
and services.
Debit card, credit card, ATM
card etc. are unique
mechanism for payment.
28. Risk function
The financial markets offer
businesses, consumers and
Govts protection against life,
health, property and income
risks.
These functions are performed
by sale of insurance policies like
general insurance, property
insurance etc
29. Policy Function
It provides a channel for
Govt. policy to achieve
society’s goals of high
employment, low inflation
and sustainable economic
growth.
30. By manipulating interest rates
and the availability of credit,
Govt can affect the borrowing &
spending plans of the public,
which, in turn influence the
growth of jobs, production and
prices
32. Payment services
It provides payments
accounts against which the
customer can write checks or
wire funds to pay for
purchases of goods &
services.
33. Thrift services
It provides attractive financial
instruments with adequate
safety and yield to encourage
people, businesses and Govt.
to save for their future
financial needs.
34. Insurance services:
It provides protection from
loss of income or property
in the event of death,
disability, negligence, or
other adverse
developments.
35. Credit services
It provides loanable funds
to supplement current
income in order to sustain
current living standard.
36. Hedging services
It provides protection against loss
due to unfavorable movements in
the market prices or interest
rates through such devices as
futures, options, and other
hedging instruments
37. Agency services
It Provides services by acting
as agent for a customer in
managing retirement funds
or other property
38. Types of Financial Market
Money Market vs Capital
Market
Open Vs Negotiated Market
Primary Vs Secondary
Markets
Spot Vs Futures, Forward,
and Option Markets
39. Money Market
The money market is designed
for making of short-term loans.
It is the institution through
which individuals and firms with
temporary surpluses of funds
meets the needs of the
borrowers who have temporary
funds shortages.
40. Money Market
A security or loan maturing one
year or less is considered to be a
money market instrument.
One of the principal functions of
money market is to finance the
working capital needs of
corporations and to provide
Govt. with short-term fund.
41. Capital Market
–The capital market is designed to
finance long term investments
(maturing more than one year) by
business, Governments and households.
–Trading of funds in the capital market
makes possible the construction of
factories, highways, schools etc.
42. Open Market
In an open market, financial
instruments are bought and
sold at large without any
restrictions.
For example, some corporate
bonds are sold in the open
market to the highest bidder
43. Negotiated Market
–In a negotiated market,
financial instruments like
corporate stocks, bonds etc.
are sold to one or few buyers
under private contract.
44. The Primary Market
–The Primary market is for the
trading of new securities issued
for the 1st time.
– Its principal function is raising
capital to support new
investment in different
projects/ventures.
–e.g. IPO.
45. The Secondary Market
–The secondary market deals
in securities previously
issued.
–Its chief function is to
provide liquidity to security
investors.
–Example includes trading in
CSE, DSE.
46. Spot Market
A Spot Market is one in
which securities or
financial services are
traded for immediate
delivery(usually within one
or two business
days).
47. A Spot Market
For example, you instruct your
broker to purchase 1000 share
of BATA Shoe Comp shares at
today’s price. You expect to
acquire ownership of those
shares within few hours/minutes.
48. A Future or Forward
Market
–These are designed to trade
contracts calling for the future
delivery of financial instruments.
–The purpose of such contract is to
reduce risk by agreeing on a price
today rather than later when price
of security may rise.
–Example: Fex Dealings in advance.
49. Options Markets
It offers investors an opportunity to
reduce risk. These markets make
possible the trading of options on
selected stocks and bonds which are
agreements that give an investor the
right to either buy or sell designated
securities to the writer of the option at
a guaranteed price at any time during
the life of the contract.
50. Factors that tie all
Financial Markets together
Credit
Speculation
Arbitrage
Perfect and Efficient
Market.
51. Credit, the Common Commodity. The
shifting of borrowers among markets
helps to weld the parts of the global
financial system together and to bring
the credit costs in the different markets
into balance with one another.
Speculation and Arbitrage. Speculators
who watch for profitable arbitrage
opportunities help to maintain
consistent prices among the markets.
Factors Tying All Financial Markets
Together
52. Factors Tying All Financial Markets
Together
Perfect and Efficient Markets. There is
some research evidence suggesting that
financial markets are closely tied to one
another due to their near perfection
and efficiency.
In the real world however, market
imperfection and information
asymmetry exist.