Discuss and illustrate out the functions of the financial system.
“Financial intermediaries exist only due to the different requirements between lenders and borrowers”. Discuss and describe.
Using monetary approach and the loan able funds theory, illustrate out how the rate of interest is determined.
‘The nominal interest rate is the rate paid on loan or security whereas the real rate is the rate paid after making allowance for inflation’. Illustrate out this statement using appropriate demonstrative illustrations.
What are liquidity and credit risks in context of banking?
‘Banks are singled out for special regulation since they play a pivotal role in economy”. Discuss and describe.