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ASSIGNMENT
DRIVE WINTER 2014
PROGRAM MBADS (SEM 3/SEM 5)MBAFLEX/ MBA (SEM 3)PGDBMN
(SEM 1)
SUBJECT CODE & NAME MA0036 & FINANCIAL SYSTEM & COMMERCIAL BANKING
BK ID B1770
CREDITS 4
MARKS 60
Note: Answer all questions. Kindly note that answers for 10 marks questions should be
approximately of 400 words. Each question is followed by evaluation scheme.
Q. 1. Financial system is a set of inter-related economic activities working together to achieve
economicdevelopment.Explainthe significance, characteristics, need and importance of financial
system.
Answer:Significance offinancial system:Infinance,the financial systemisthe systemthatallowsthe
transferof moneybetweensavers(andinvestors) andborrowers. A financial system can operate on
a global, regional or firm specific level. Gurusamy, writing in Financial Services and Systems has
described it as comprising "a set of complex and closely interconnected financial institutions,
markets, instruments, services, practices, and transactions."
Characteristics of financial system:The financial industry makes a considerable contribution to
employmentandeconomicoutputinAustralia.However,the Inquiry believes the focus of financial
system policy should be primarily on the degree
Q. 2. Money market is one of the type of financial market. Explain the features of money market
and write the constituents of money market.
Answer:The moneymarketisnotone marketbut is “a collective name giventothe variousform and
institutions that deal with the various grades of near ­money.”
Features of money market:

2. Q. 3. Write short notes on :
a) Commercial Banks:A commercial bank is a type of bank that provides services such as accepting
deposits,makingbusinessloans,andofferingbasicinvestmentproducts. Commercial bank can also
referto a bankor a divisionof abankthat mostlydealswithdepositsandloans fromcorporations or
large businesses, as opposed to individual members of the public (retail banking). In the United
Statesthe term "commercial bank"wasoftenusedtodistinguishit from an investment bank due to
differences in bank
b) Co-operative Banks:Cooperative banking is retail and commercial banking organized on a
cooperative basis.Cooperative banking institutions take deposits and lend money in most parts of
the world. Cooperative banking, as discussed here, includes retail banking carried out by credit
unions, mutual savings banks, building societies and cooperatives, as well as commercial banking
services provided by mutual organizations (such as cooperative federations) to cooperative
businesses.
c) Post office:A postoffice isacustomerservice facilityformingpart of a national postal system. Post
officesoffermail-relatedservicessuchas acceptance of letters and parcels; provision of post office
boxes; and sale of
Q. 4. The business of commercial banks deals with Liability products and asset products. Explain
the important features of liability products.
Answer:Productliabilityisthe areaof law in whichmanufacturers, distributors, suppliers, retailers,
and others who make products available to the public are held responsible for the injuries those
productscause.Althoughthe word"product"has broadconnotations,product liability as an area of
law is traditionally limited to products in the form of tangible personal property.
Q. 5. Explain the Chore committee recommendations and also write about the challenges and
issues of financial reforms.
Answer:Chore committee recommendations: The qualityof lendingimproved considerably but the
cash creditsystemcontinuedtopose few difficulties.Bifurcationof workingcapital limitintwo parts
as demand loan and a fluctuating cash credit component, as suggested by Tandon Group, was not
done bymany banks.It was,therefore,considerednecessarybyReserve Bank to review the system
of cash creditinall itsaspectsand for thispurpose a 'Working Group' headed by Sh. K. B. Chore was
appointed in 1979.
Q. 6. Explain the perspectives in retail banking and perspectives in Regulation.

3. Answer:Explanation of perspectives in retail banking:A plodding recovery, weak macroeconomic
conditions, and dim growth prospects continue to challenge the world’s leading retail banks. In
response,these banksare takingactiontoimprove theiroperational effectiveness and productivity.
The most efficientandprofitableamongthemare goinga step further. While continuing to achieve
gains in efficiency, they are also becoming more
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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or
Call us at : 08263069601
(Prefer mailing. Call in emergency )