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Function of financial system - Introduction to Indian financial system, Interdisciplinary issues in Video Lecture | Interdisciplinary Issues in Indian Commerce - B Com
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FAQs on Function of financial system - Introduction to Indian financial system, Interdisciplinary issues in Video Lecture - Interdisciplinary Issues in Indian Commerce - B Com
| 1. What is the function of the financial system? |  |
Ans. The financial system plays a crucial role in the economy by facilitating the flow of funds between savers and borrowers. It provides various services such as intermediation, mobilization of savings, allocation of capital, and risk management.
| 2. What are the components of the Indian financial system? | |
Ans. The Indian financial system consists of various components, including banks, financial institutions, capital markets, money markets, insurance companies, and non-banking financial companies (NBFCs). These components work together to ensure the smooth functioning of the financial system.
| 3. How does the Indian financial system contribute to economic growth? | |
Ans. The Indian financial system plays a crucial role in promoting economic growth by channeling funds from savers to borrowers. It provides financial intermediation, which helps in efficient allocation of capital and facilitates investment in productive activities. Additionally, the financial system provides various financial services that support economic activities and entrepreneurship.
| 4. What are the interdisciplinary issues in the Indian financial system? | |
Ans. The Indian financial system faces several interdisciplinary issues that require a multidisciplinary approach for effective regulation and management. Some of these issues include the integration of technology in financial services (Fintech), financial inclusion, sustainable finance, and the impact of global financial markets on the Indian economy.
| 5. How does the financial system impact individuals and businesses in India? | |
Ans. The financial system has a significant impact on individuals and businesses in India. For individuals, it provides access to various financial services such as banking, insurance, and investment options, allowing them to manage their finances effectively. For businesses, the financial system offers essential services like credit facilities, capital market access, and risk management tools, enabling them to grow and expand their operations.
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Dec 23, 2024 Last updated |
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