In which two sections is the India financial structure divided?
Answers
Explanation:
Financial Markets :-
The marketplace where buyers and sellers interact with each other and participate in the trading of money, bonds, shares and other assets is called a financial market.
The financial market can be further divided into four types:
Capital Market – Designed to finance the long term investment, the Capital market deals with transactions which are taking place in the market for over a year.
The capital market can further be divided into three types:
- (a)Corporate Securities Market
- (b)Government Securities Market
- (c)Long Term Loan Market
Money Market – Mostly dominated by Government, Banks and other Large Institutions, the type of market is authorised for small-term investments only. It is a wholesale debt market which works on low-risk and highly liquid instruments.
The money market can further be divided into two types:
- (a) Organised Money Market
- (b) Unorganised Money Market
⭐ Foreign exchange Market – One of the most developed markets across the world, the Foreign exchange market, deals with the requirements related to multi-currency. The transfer of funds in this market takes place based on the foreign currency rate.
⭐ Credit Market – A market where short-term and long-term loans are granted to individuals or Organisations by various banks and Financial and Non-Financial Institutions is called Credit Market.
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