An Overview of Indian Financial System

Money market corporations: primarily in wholesale market, they borrow and lend from big corporations and government agencies.

Capital- Capital is funds that are used to create income or make an investment. The funds that are used to purchase a share of a mutual fund is capital that you are investing in the money. Firms raise capital from investors by selling stocks and bonds and money are use to expand, make attainment or else build the firm.

The overall development of an economy is a major factor that has significant impacts on the development of the economy's financial markets. Since well-functioning financial systems offer good and easily accessible information, they lower the costs of transaction. This in turn enhances resource allocation and strengthens economic growth. The financial services industry consists of various systems such as stock markets and banking systems that enhance growth and help in poverty reduction. However, commercial banks tend to dominate the financial system during low levels of economic development while stock markets become more active and effective during periods of high levels of economic development ("Financial Sector", n.d.). The other important systems in the financial services industry include sound macroeconomic policies, shareholder protection, and good legal systems.

A stock market is a place where stocks or shares are bought or sold. An example of a stock market is New York stock exchange and Nigerian stock exchange.

Some of these securities include debt securities, equity securities, common stock, and preferred stock. Lastly, financial markets provide the money needed by individuals and companies and establish the link between corporations and investors according to (Titman, Keown, & Martin, 2011).

This research essay is done for the purpose to compare and contrast the financial system between two countries chosen which are Australia and Singapore. This research essay is mainly concentrate on different types of institutions in the financial system and the role they play. Moreover, the different types of institutions in different countries will then compare in order to analyze the similarity and differences.

* Direct finance: borrowers borrow funds from lenders in the financial market by selling them securities (no intermediaries)

Money markets deal in short-term securities having maturities of one year or less. Capital markets deal in long-term securities having maturities greater than one year.

The turmoil in the international financial markets of advanced economies, that started around mid-2007, has exacerbated substantially since August 2008. The financial market crisis has led to the collapse of major financial institutions and is now beginning to impact the real economy in the

n types of market are: physical asset vs financial assets, spot vs future markets, primary vs secondary market money vs capital markets

A stock market is also known as an equity market. A market is an open market for the trading of company-held stock as well as their derivatives at a consented price. It is a large network of several thousands of money-making transactions. It does not have a physical existence as an entity. But at one fell swoop the stocks are listed on an actually accessible unit known as the stock exchange.

• Finance - The management of revenues or other liquid resources of a government, business, group or individual; the conduct or transaction of money matters generally, especially those affecting the public, as in the fields of banking, investments and credit. It can simply be defined as sell on credit or commercial activities that are study to manage capital and assets.

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

Finance is a vast area of facts, principles and theories dealing with various ways of raising and using it by individuals and others. It deals with how individuals and companies divide their business income between consumption and how to choose from among the available investment opportunities and how they raise money for increased consumption or investment.

Two of the most commonly used components of the financial markets are money markets and capital markets. The biggest distinguishing factor between these two markets is on the basis to maturity of the securities traded in each market (Mishkin, 2016). Money markets deal with short term debt instruments- less than one year and capital markets deal with debt instruments – typically greater than one year and longer, as well as equity instruments (Mishkin, 2016).