Question

write an essay on financial services system in India?​

Answer 1

Answer:

It is a sort of indirect financing in which savers deposit funds with financial institutions rather than directly buying bonds or mortgages and the financial institutions, in turn, lend to the ultimate borrowers.

Financial intermediaries are in a better position than individuals to bear and spread the risks of primary security ownership.

Because of their large size, intermediaries can diversify their portfolios and minimize the risk involved in holding any one security.

Answer 2

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It is a sort of indirect financing in which savers deposit funds with financial institutions rather than directly buying bonds or mortgages and the financial institutions, in turn, lend to the ultimate borrowers.

Financial intermediaries are in a better position than individuals to bear and spread the risks of primary security ownership.

Because of their large size, intermediaries can diversify their portfolios and minimize the risk involved in holding any one security.

The commercial banks, financial institutions, finance and investment companies, ins

urance companies, unit trusts, pension funds etc., are the examples for financial intermediation.

Financial dis-intermediation is the reverse where savers take their funds out of financial institutions and buy the primary securities themselves.

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