ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -read more is the market, an arrangement or institution where the traders are involved in the buying and selling of financial assets like shares, bonds, derivatives, commodities, currencies, etc. It facilitates the exchange of financial instruments and financial securities.

Detailed explanation-2: -The most common types of financial institutions are commercial banks, investment banks, insurance companies, and brokerage firms. These entities offer a wide range of products and services for individual and commercial clients such as deposits, loans, investments, and currency exchange.

Detailed explanation-3: -The major categories of financial institutions are central banks, retail and commercial banks, internet banks, credit unions, savings and loan (S&L) associations, investment banks and companies, brokerage firms, insurance companies, and mortgage companies.

Detailed explanation-4: -Financial markets facilitate the interaction between those who need capital with those who have capital to invest. In addition to making it possible to raise capital, financial markets allow participants to transfer risk (generally through derivatives) and promote commerce.

Detailed explanation-5: -The Reserve Bank regulates financial markets within the overarching statutory framework of the Reserve Bank of India Act, 1934, the Government Securities Act, 2006, Foreign Exchange Management Act, 1999, the Bilateral Netting of Qualified Financial Contracts Act, 2020 and the Payment and Settlement Systems Act, 2007.