A Note On Financial Management

1753 Words Feb 9th, 2016 8 Pages
Liquidity is a noteworthy issue in security markets in developing nations such as India. Liquidity might have various things for understanding. For monetary business sector, we for the most part characterize liquidity as the simplicity of exchanging a money related item. On the off chance that the exchanging results in generous quality misfortune for the advantage versus its natural worth, then we consider the business sector for the security as illiquid. There are a few variables that influence the liquidity - data accessibility, unwavering quality and nature of exchange costs, value sway, and so forth. Liquidity influences the benefit costs as financial specialists would require extra pay to have the stock of the illiquid resources which have higher exchange fetched opposite a fluid resource. The present study looks at the liquidity of the Government securities market in India. The Government securities business sector is seen as a standout amongst the most imperative money related business sector as it connections monetary action to loan cost. National banks utilize the business sector to perform residential financial operations like implanting liquidity to the framework or engrossing overabundance liquidity in the framework through Repo windows or Open Market Operations (OMO). The business sector liquidity affects a national bank 's strategy making particularly when the national bank has extra obligation of guaranteeing the smooth getting program for the Government.…

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