10 Questions
What are the regulatory bodies that oversee the formal financial system in India?
Ministry of Finance (MoF), Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI)
Name three components of the informal financial system mentioned in the text.
Individual moneylenders, groups operating as funds or associations, partnership firms
What is one of the important functions of a financial system mentioned in the text?
Mobilize and allocate savings efficiently and effectively
How does a financial system help in monitoring corporate performance?
By selecting projects to be funded and inspiring operators to monitor performance
What role does a financial system play in providing payment and settlement systems?
It provides a payment mechanism for exchange of goods and services
What is one of the key functions of the informal financial system described in the text?
Mobilising and allocating savings efficiently
Which type of individuals are mentioned as part of the informal financial system in the text?
Pawnbrokers
How does a financial system promote growth on a sustained basis according to the text?
By facilitating continuous upgradation of technologies
What role do financial markets and institutions play in monitoring corporate performance?
By exerting corporate control through hostile takeovers
Which regulatory body oversees the formal financial system along with the Ministry of Finance and RBI in India?
Securities and Exchange Board of India (SEBI)
Explore the meaning and components of the financial system, including the exchange of funds between financial market participants and the role of financial institutions. Understand how financial systems operate at national and global levels.
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