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IndiaBook.in » » Finance

Finance is the science of money manage- ment. We can say that finance is something related to manage - ment of money and other assets. Finance represents the resources by way funds needed for a particular activity. Finance is also referred to as "Funds" or "Capital", when referring to the financial needs of a corporate body. Now you can finance anything that you want for example you can have home loans, business loans, education loans, etc....

Financial System:

Financial system

Financial System of any country consists of financial markets, financial intermediation and financial instruments or financial products.Financial system is An information system, comprised of one or more applications, that is used for any of the following:collecting, processing, maintaining, transmitting,and reporting data about financial events supporting financial planning or budgeting activities; accumulating and reporting cost information; or supporting the preparation of financial statements.

Financial markets:

A Financial Market can be defined as the market in which financial assets are created or transferred. The financial markets are markets which facilitate the raising of funds or the investment of assets, depending on viewpoint. They also facilitate handling of various risks.The financial markets can be divided into different subtypes:

Money market:
money market
The money market is a general term for the markets in which banks lend to and borrow from each other, trade financial instruments such as Certificates of Deposit (CDs) or enter agreements such as Repos and Reverses. The market normally trades in maturities up to one year. It provides short to medium term liquidity in the global financial system. Derivatives of the money market include forward rate agreements (FRAs) and futures.

Capital Market:
The capital market is designed to finance the long-term investments. The transactions taking place in this market will be for periods over a year.

Derivatives markets:
Derivatives markets provides instruments for handling of financial risks

business offices
Forex Market:
The Forex market deals with the multicurrency requirements, which are met by the exchange of currencies. Depending on the exchange rate that is applicable, the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe.

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