B Com Exam > B Com Notes > Financial Markets and Institutions > Indicators of Financial Development - Financial Markets and Institutions
Indicators of Financial Development - Financial Markets and Institutions | Financial Markets and Institutions - B Com PDF Download
What constitute the financial development is generally discussed by pointing out the in the financial institution in the financial structure of the developed and developing countries. Based on this approach some researcher have used one or more indicator to denote the degree of financial development.
-
Finance ration
The ratio of total issues of primary and secondary claim to national income
-
Financial Inter -relation ratio
The ratio of financial assets to physical assets in the economy.
- Intermediation ratio
The ratio of secondary issue to primary issue ,which indicates the extent of development of financial institution
as mobilizers of funds relative to real sectors as direct mobilizers of funds.It indicate institutionalization of financial activity in the economy.
- The ratio of money to income
Higher the ratio greater the financial development because it indicate the extent of monetization and size of exchange economy in the nation.
- Developed Financial sector is fully integrated domestically as well as internationally .In such system risk adjusted rate of return doesn’t differ significantly in respect of investor as well as saver.
- The lower the transaction and information cost ,the higher the financial development.
- A developed financial structure is characterized by presence of strong ,active ,large sized non banking financial sector comprising stock market ,debt market ,insurance companies ,pension fund ,mutual fund etc.
- The greater the financial development ,the greater the openness of the economy reflected in high level of current account openness/convertibility ,minimum restriction on foreign ownership of assets and repatriation of earning and absence of parallel foreign exchange market.
- In a developed financial system ,private banking not the public sector banking is predominant .
The document Indicators of Financial Development - Financial Markets and Institutions | Financial Markets and Institutions - B Com is a part of the B Com Course Financial Markets and Institutions.
All you need of B Com at this link: B Com
|
52 docs|13 tests
|
FAQs on Indicators of Financial Development - Financial Markets and Institutions - Financial Markets and Institutions - B Com
| 1. What are financial markets and institutions? |  |
Ans. Financial markets are platforms where buyers and sellers trade financial assets such as stocks, bonds, commodities, and currencies. Financial institutions, on the other hand, are organizations that provide financial services to individuals, businesses, and governments. They include commercial banks, investment banks, insurance companies, mutual funds, and pension funds.
| 2. How do financial markets contribute to financial development? | |
Ans. Financial markets play a crucial role in financial development by providing a mechanism for the efficient allocation of funds in the economy. They facilitate the flow of funds from savers to borrowers, enabling businesses to invest in productive activities and individuals to meet their financial needs. Moreover, financial markets promote price discovery, liquidity, and risk-sharing, which further enhance overall economic growth and stability.
| 3. What are some indicators of financial development? | |
Ans. Indicators of financial development include the size of financial markets (measured by market capitalization and total value of financial assets), the depth of markets (measured by trading volume and turnover ratio), the efficiency of markets (measured by bid-ask spreads and transaction costs), and the accessibility of financial services (measured by the number of bank branches and ATMs per capita).
| 4. How do financial institutions contribute to financial development? | |
Ans. Financial institutions play a crucial role in financial development by mobilizing savings from households and channeling them into productive investments. They provide essential services such as intermediation, risk management, and payment systems. Financial institutions also contribute to financial stability by monitoring and managing risks, providing liquidity during crises, and facilitating efficient capital allocation.
| 5. What are the benefits of financial development for an economy? | |
Ans. Financial development brings several benefits to an economy. It promotes economic growth by facilitating savings mobilization, efficient allocation of resources, and technological innovation. It also improves income distribution by providing access to financial services for underserved populations. Furthermore, financial development enhances financial stability by reducing information asymmetry, mitigating risks, and enhancing the resilience of the financial system. Overall, financial development contributes to the overall well-being and prosperity of a nation.
Related Exams
About this Document
|
4.81/5 Rating |
|
Oct 25, 2024 Last updated |
Document Description: Indicators of Financial Development - Financial Markets and Institutions for B Com 2024 is part of Financial Markets and Institutions preparation.
The notes and questions for Indicators of Financial Development - Financial Markets and Institutions have been prepared according to the B Com exam syllabus. Information about Indicators of Financial Development - Financial Markets and Institutions covers topics
like and Indicators of Financial Development - Financial Markets and Institutions Example, for B Com 2024 Exam. Find important definitions, questions, notes, meanings, examples, exercises and tests below for Indicators of Financial Development - Financial Markets and Institutions.
Introduction of Indicators of Financial Development - Financial Markets and Institutions in English is available as part of our Financial Markets and Institutions
for B Com & Indicators of Financial Development - Financial Markets and Institutions in Hindi for Financial Markets and Institutions course.
Download more important topics related with notes, lectures and mock test series for B Com
Exam by signing up for free. B Com: Indicators of Financial Development - Financial Markets and Institutions | Financial Markets and Institutions - B Com
Description
Full syllabus notes, lecture & questions for Indicators of Financial Development - Financial Markets and Institutions | Financial Markets and Institutions - B Com - B Com | Plus excerises question with solution to help you revise complete syllabus for Financial Markets and Institutions | Best notes, free PDF download
Information about Indicators of Financial Development - Financial Markets and Institutions
In this doc you can find the meaning of Indicators of Financial Development - Financial Markets and Institutions defined & explained in the simplest way possible. Besides explaining types of
Indicators of Financial Development - Financial Markets and Institutions theory, EduRev gives you an ample number of questions to practice Indicators of Financial Development - Financial Markets and Institutions tests, examples and also practice B Com
tests
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
study material
,MCQs
,Extra Questions
,Indicators of Financial Development - Financial Markets and Institutions | Financial Markets and Institutions - B Com
,past year papers
,Summary
,Viva Questions
,video lectures
,Indicators of Financial Development - Financial Markets and Institutions | Financial Markets and Institutions - B Com
,shortcuts and tricks
,ppt
,Important questions
,Sample Paper
,Semester Notes
,Free
,practice quizzes
,Objective type Questions
,mock tests for examination
,Indicators of Financial Development - Financial Markets and Institutions | Financial Markets and Institutions - B Com
,Exam
,Previous Year Questions with Solutions
;
Additional Information about Indicators of Financial Development - Financial Markets and Institutions for B Com Preparation
Indicators of Financial Development - Financial Markets and Institutions Free PDF Download
The Indicators of Financial Development - Financial Markets and Institutions is an invaluable resource that delves deep into the core of the B Com exam.
These study notes are curated by experts and cover all the essential topics and concepts, making your preparation more efficient and effective.
With the help of these notes, you can grasp complex subjects quickly, revise important points easily,
and reinforce your understanding of key concepts. The study notes are presented in a concise and easy-to-understand manner,
allowing you to optimize your learning process. Whether you're looking for best-recommended books, sample papers, study material,
or toppers' notes, this PDF has got you covered. Download the Indicators of Financial Development - Financial Markets and Institutions now and kickstart your journey towards success in the B Com exam.
Importance of Indicators of Financial Development - Financial Markets and Institutions
The importance of Indicators of Financial Development - Financial Markets and Institutions cannot be overstated, especially for B Com aspirants.
This document holds the key to success in the B Com exam.
It offers a detailed understanding of the concept, providing invaluable insights into the topic.
By knowing the concepts well in advance, students can plan their preparation effectively.
Utilize this indispensable guide for a well-rounded preparation and achieve your desired results.
Indicators of Financial Development - Financial Markets and Institutions Notes
Indicators of Financial Development - Financial Markets and Institutions Notes offer in-depth insights into the specific topic to help you master it with ease.
This comprehensive document covers all aspects related to Indicators of Financial Development - Financial Markets and Institutions.
It includes detailed information about the exam syllabus, recommended books, and study materials for a well-rounded preparation.
Practice papers and question papers enable you to assess your progress effectively.
Additionally, the paper analysis provides valuable tips for tackling the exam strategically.
Access to Toppers' notes gives you an edge in understanding complex concepts.
Whether you're a beginner or aiming for advanced proficiency, Indicators of Financial Development - Financial Markets and Institutions Notes on EduRev are your ultimate resource for success.
Indicators of Financial Development - Financial Markets and Institutions B Com Questions
The "Indicators of Financial Development - Financial Markets and Institutions B Com Questions" guide is a valuable resource for all aspiring students preparing for the
B Com exam. It focuses on providing a wide range of practice questions to help students gauge
their understanding of the exam topics. These questions cover the entire syllabus, ensuring comprehensive preparation.
The guide includes previous years' question papers for students to familiarize themselves with the exam's format and difficulty level.
Additionally, it offers subject-specific question banks, allowing students to focus on weak areas and improve their performance.
Study Indicators of Financial Development - Financial Markets and Institutions on the App
Students of B Com can study Indicators of Financial Development - Financial Markets and Institutions alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Indicators of Financial Development - Financial Markets and Institutions,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Indicators of Financial Development - Financial Markets and Institutions is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup