Page 18 - DCOM304_INDIAN_FINANCIAL_SYSTEM

Unit 1: Indian Financial System

5. "Negotiable Certificate of Deposit (CD) is a special type of time deposit of a commercial Notes
bank." In the light of the statement discuss the importance of Certificate of deposits.
6. Write a brief note on the nature of Indian financial system.

7. What according to you is the role of Indian Financial system? Discuss in brief.
8. Highlight the major functions of Indian financial system.
9. "Commercial Bills represent an important short-term financial instrument that arises out
of commercial transactions". Discuss
10. Throw light on the various constraints towards growth of Indian financial system?

Answers: Self Assessment

1. Financial System
2. Treasury bills
3. Reserve Bank of India

4. Financial intermediaries
5. Underwriters
6. Bonds

7. Financial asset
8. Commercial Bills
9. Commercial Paper
10. Corporate bonds
11. foreign banks

12. Foreign Exchange Management
13. Insurance Development and Regulatory Authority
14. Tangible asset

15. credit
1.8 Further Readings

Books G. M. Meier and R. E. Baldwin, Economic Development, Theory, History, Policy,
John Wiley & Sons, INC, New York, 1957, p.2.
George Rosen, Industrial Change in India, Asia Publishing House, Bombay, 1959,
p.1.
W. Arthur Lewis, The Theory of Economic Growth, George Allen & Unwin Ltd.,
London, 1956, p11.
Ragnar Nurkse, Problems of Capital Formation in Underdeveloped Countries,
Basil Blackwell, Oxford, 1955, p.2.

Ibid.

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