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Indian Financial System - Local Finance, Public Finance Video Lecture | Public Finance - B Com
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FAQs on Indian Financial System - Local Finance, Public Finance Video Lecture - Public Finance - B Com
| 1. What is the role of the Indian financial system in local finance? |  |
Ans. The Indian financial system plays a crucial role in local finance by providing financial services and resources to local governments and municipalities. This includes funding for infrastructure development, public services, and other local projects. The financial system facilitates the mobilization and allocation of funds from various sources to meet the financial requirements of local bodies.
| 2. How does the Indian financial system support public finance? | |
Ans. The Indian financial system supports public finance by providing essential financial services to the government. This includes managing government revenues, issuing government securities, and facilitating borrowing and lending activities. The financial system ensures efficient resource mobilization, allocation, and utilization for public expenditure, thereby supporting the overall functioning of public finance in India.
| 3. What are the key components of the Indian financial system? | |
Ans. The key components of the Indian financial system include financial institutions, financial markets, and financial instruments. Financial institutions comprise banks, non-banking financial companies (NBFCs), insurance companies, and mutual funds. Financial markets consist of capital markets, money markets, and foreign exchange markets. Financial instruments include stocks, bonds, derivatives, and various types of loans.
| 4. How does the Indian financial system promote economic growth through local and public finance? | |
Ans. The Indian financial system promotes economic growth through local and public finance by ensuring the efficient allocation of financial resources. It provides the necessary funding for infrastructure development, public services, and other projects, which contribute to economic growth. Additionally, the financial system facilitates investment, capital formation, and entrepreneurship, which are essential drivers of economic development.
| 5. What are the challenges faced by the Indian financial system in supporting local and public finance? | |
Ans. The Indian financial system faces several challenges in supporting local and public finance. These include inadequate financial inclusion, lack of access to credit for marginalised sections, inefficiencies in resource allocation, and weak governance frameworks. Additionally, the financial system needs to address issues related to financial stability, risk management, and regulatory compliance to effectively support local and public finance in India.
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Dec 20, 2024 Last updated |
Video Description: Indian Financial System - Local Finance, Public Finance for B Com 2024 is part of Public Finance preparation.
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