Main Article Content
Abstract
Finance is the integral part of business and life-blood of all economic activities. The financial system of a country works through a set of financial markets and financial institutions. Financial markets are those which deal in financial assets and credit instruments of different types, such as, currency, cheese, bills, bonds, bank deposits, handis, etc. In a broad since, financial market includes besides money and capital markets, the government securities or bond market and foreign exchange market. In a narrow sense, however, financial markets, are the credit markets. The main functions of financial markets are to facilitate creation and allocation of credit and liquidity, to serve as intermediaries in the process of mobilization of savings in the economy; to assist the process of economic development through a more balanced regional and sector wise distribution of investible funds, and to provide financial convenience to the people.