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Structure of Indian financial systm

Updated: 12/17/2022
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Mixed Economy

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Explain Components and Structure of Indian Financial System through Financial assets?

they eat curry


What are the determinants of the financial structure of a firm?

Financial Structure is the specific mixture of long-term debt and equity that a company uses to finance its operations. This financial structure is a mixture that directly affects the risk and value of the business. The main concern for the financial manager of the company is deciding how much money should be borrowed and the best mixture of debt and equity to obtain. The financial manager also has to find the least expensive sources of funds for the company to use. It is also referred to as capital structure. Capital structure as the name implies is one of the most puzzling issues in corporate finance literature. Capital structure basically can be referred to as a firm's financial framework. It is also seen a mixture of a variety of long term sources of funds and equity shares including reserves and surpluses of an enterprise The capital structure of a firm is very important since it related to the ability of the firm to meet the needs of its stakeholders. The capital structure of a firm explains the ways in which a firm finances its investment and overall operations. It consists mainly of a combination of debt and equity as well as all other sources of finance such as retained earnings etc available to the firm Therefore, proportion of debt to equity is a strategic choice of corporate managers. Financial distress, liquidation and bankruptcy are the ultimate consequences that lie ahead if any major misjudgment occurred following any financing decision of the firm's activity. Thus, firms with high leverage need to allocate an efficient mixture of capital that will finally reduce its cost. Capital structure constitutes a substantial part of an organization and therefore is significant in a company's financial operations. More so, financing decisions of firms are very crucial for the financial wellbeing of the firm. Researchers have continued to analyze capital structures and try to determine whether optimal capital structures exist. An optimal capital structure is usually defined as one that will minimize a firm's cost of capital, while maximizing shareholder's wealth. The debate of optimal capital structure has been the focal point of the finance literature for previous several decades.


When the term structure of interest rates is downward sloping and interest rates are expected to decline?

financial manager generally borrows short-term


What factors contributed to increased demand for the services of loan agents and brokers in the early 1990s?

Low interest rates, a trend toward outsourcing and contracting by financial institutions, and a shift in the structure of U.S. financial markets were the most prominent forces boosting industry success.


Al possible questions from this chapter-Indian economy on the eve of the independence?

Occupational structure refers to distribution of working population across primary secondary and tertiary sector of the economy.

Related questions

Explain Components and Structure of Indian Financial System through Financial assets?

they eat curry


What Indian financial service code?

It is Indian Financial System Code


What are the characteristics of Indian financial system?

There are basically 4 components of INDIAN FINANCIAL SECTORS are: 1. FINANCIAL INSTITUTIONS 2. FINANCIAL INSTRUMENTS 3. FINANCIAL MARKETS 4. FINANCIAL SERVICES


Economic structure of Indian economy?

The Indian economy is a mixed economy, with elements of both capitalism and socialism. It is primarily based on services, industry, and agriculture sectors. Key industries include information technology, pharmaceuticals, textiles, and automotive. The government plays a significant role in regulating key sectors and promoting inclusive growth through various social welfare programs.


What actors and actresses appeared in Systm - 2005?

The cast of Systm - 2005 includes: Patrick Norton as himself


What are the release dates for Systm - 2005?

Systm - 2005 was released on: USA: 23 May 2005 (internet)


Chart showing financial services in Indian financial system?

chart showing financial service of indian fancial system


What are the key determinants of a financial structure?

financial ratios


Difference between Capital Structure and Financial Structure?

Capital Structure vs Financial Structure• Capital structure of a company is long term financing which includes long term debt, common stock and preferred stock and retained earnings.• Financial structure on the other hands also includes short term debt and accounts payable.• Capital structure is thus a subset of financial structure of a company.


What is the skeletal systm?

It is the bones in your body.


What base numbering systm is hexidecimal?

16


What are the release dates for Systm - 2005 Asterisk 1-5?

Systm - 2005 Asterisk 1-5 was released on: USA: 21 December 2005