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tion is, i.e., the greater the efficiency with which it can mobilise the resources in the economy and create value, the stronger will be the fundamentals of the concerned nation.
The financial institutions together form the financial market of a nation. These institutions contained within the financial web or community could be categorised into a number of groups depending on the type of activities with which they are involved. These different groups, namely, the agents, brokers and financial intermediaries are linked up with one another closely through contractual agreements or legal orders. While agents and brokers operate to bring the institutions and investors closer to each other, the intermediaries are the ones who channelise the flow of funds between any two agents. However, the classification above had been rather a broad one and the significant financial institutions are actually represented by special terms as follows –
The banking sector – This sector comprises of financial intermediaries involved in channelising the flow of resources. To be precise, the banking sector indulges in accepting surplus deposits and lending them to deficit accounts.
Foreign exchange market – Foreign exchange market also comprises of agents and brokers with the only difference with the former being that the role is being played by the commercial banks of the concerned nation (Das, 2005).
Government debt market – The government debt market comprises of intermediaries in the form of the central bank of a given nation. It indulges in accumulating debt for the government from internal as well as external sources.
The UK financial system is often claimed as one of the most robust and sound system among its counterparts in various developed nations, by the economists and political leaders of the nation. In fact, such claims could be debated by various facts and figures post the global financial meltdown. The bank had kept its prime lending rate rather low at 5.52%
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In order to determine the set price, the European Union determined their currency against that of major world currencies like the US dollar. A fixed exchange rate is a rate whose currency amount is determined in advance.
?………………………………20 9) CHAPTER – 8…………………………………………………………….23 10) REFERENCES……………………………………………………………25 Abstract There has been immense talk about how the economic interrelations between countries across the globe have intensified.
This study is aimed towards reviewing such issues and providing empirical evidence along with presenting some new analyses of this evidence. This paper explains the implications for the economic policy of the consideration that the institutional structure might be inter-related with the type of activity.
Financial Growth According to the conventional theories of financial intermediation, the intimidation stands on the transaction cost and requires use of full information. They are considered to do work by taking deposits and issue the insurance policy, which is the method to provide finance to a company.
Then the essay goes through examples, such as pragmatic study on the relative values of bank-based as well as market-based financial systems has focused on “Germany and Japan as bank-based systems and the United States and the United Kingdom as market-based systems” (World Bank, 2012, p. 111).
An income statement provides one with an accurate description of the company’s profitability over a set period of time. It could be described as an accounting statement that matches a company’s revenues with its expenses over a given period of time usually a quarter or a year.
Auditing is the process that is systematic being objective to obtain and evaluate the evidence pertaining to the assertions as well as the criteria to be established and at the same time communicates the results to the users with interest. Financial auditing is one of the aspects that may be considered to the audit process, wherein the said audit objective pertains to the financial statements for the auditor to be able to express the opinion on the preparation of financial statements and in all material respects according to the financial reporting framework as identified.
As the industries grow there will be visible impact on the economy. Job opportunities grow and innumerable colonies are developed. The growth is multifold and the technology exchange migration takes place.
People of different nations migrate to cities. Different nations of people live in one city, like in Australia representing unity in diversity with so many cultures and traditional values.
According to the paper Long term finance may include long term loans from banks at fixed interest rates which are repayable over a period of time. Investments can be made in debt instruments like bonds. A mixture of debt and equity may also be used for middle to long term investment. Specific case studies can be used to analyze the suitability of long term financing for different types of organizations