Financial Derivatives Features, Types, Disadvantages
The term ‘financial derivative’ encompasses a variety of financial instruments, including stocks, bonds, treasury bills, interest rates, foreign currencies, and other hybrid securities.
The term ‘financial derivative’ encompasses a variety of financial instruments, including stocks, bonds, treasury bills, interest rates, foreign currencies, and other hybrid securities.
The establishment of Credit Rating Agencies in India forms an important step in the process of financial reforms. Following are the agencies explained in brief:
There are various function of RBI related to monetary management, banking operations, foreign exchange, developmental works, and research on problems of the economy.
The financial system enables borrowers and lenders to exchange funds. Indian Financial System is regulated by independent authorities in sectors such as insurance, banking, capital markets, and various service sectors.
Liquidity management is a systematic and strategic approach which businesses, individuals, or financial institutions use to ensure that they have sufficient funds or assets available which can be easily and immediately converted to cash to meet their short-term financial commitments.
The depository system operates along the lines of a banking system. A bank holds and transfers funds between accounts, whereas a depository holds and transfers securities between accounts. In both systems, the transfer of funds or securities occurs without the actual handling of securities or funds.