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What Does  Commercial Bank  Mean? A financial institution that provides services such as a accepting deposits and giving business loans. Commercial banking activites are different than those of investment banking, which include underwriting, acting as an intermediary between an issuer of securities and the investing public, facilitating mergers and other corporate reorganizations, and also acting as a broker for institutional clients Privately owned  financial institution  which (1)  accepts demand  and  time deposits , (2)  makes   loans  to  individuals and  organizations , and (3)  provides   services  such as documentary collections ,  international   banking ,  trade financing . Since a large proportion of a commercial bank's deposits  is  payable on demand , it prefers to make  short-term  loans instead of the  long-term  ones (which are handled by organ...

Functions of Central Banks 1. Supervision of the banking system 2. Advising the government on monetary policy 3. Issue of banknotes 4. Acting as banker to other banks 5. Acting as banker to government 6. Raising money for the government 7. Controlling the nation’s currency reserves 8. Acting as “ lender of last resort” 9. Liaising with international bodies Lets look at little brief of some of them: 1.   Supervision of the banking system:  Central bank supervises the banking system of the country. Central may be responsible for banking system. They collect information from commercial bank and take necessary decision by two ways- a) bank examine and b) bank regulation 2. Advising the government on monetary policy:  The decision on monetary policy may be taken by the central bank. Monetary policy refers to interest rates and money supply. The central bank will corporate with the government on economic policy generally and will produce advice on monetary policy and eco...

What Are The Main Functions Of Central Bank The first and most important function of a central bank is to accept responsibility for advising the government on the making of the country’s financial policy, and thus to see that it is carried out. The government must decide how much money there shall be in the country at a given time, and the central bank must take steps to increase or decrease the supply accordingly. This was by no means clear when the bank of Somaliland was founded. The specific reason then for its formation was to provide money for the government during the time when public expenditure had become too expensive to be financed out of current taxation. Its business at first was the receiving of money on deposit and lending of money against satisfactory security. At first this lending was nearly all to the government, and gradually the bank of Somaliland came to perform other services on behalf of the government, and so to become regarded as “banker to the government”....

The entity responsible for overseeing the monetary system for a nation (or group of nations). Central banks have a wide range of responsibilities, from overseeing monetary policy to implementing specific goals such as currency stability, low inflation and full employment. Central banks also generally issue currency, function as the bank of the government, regulate the credit system, oversee commercial banks, manage exchange reserves and act as a lender of last resort. he central banking system in the U.S. is known as the Federal Reserve System (commonly known as "the Fed"), which is composed of 12 regional Federal Reserve Banks located in major cities throughout the country. The main tasks of the Federal Reserve are to supervise and regulate banks, implement monetary policy by buying and selling U.S. Treasury bonds and steer interest rates. Ben Bernanke currently serves as the chairman of the Board of Governor...

A financial market allows for intermediation of capital between households & firms. Broadly a financial market performs the following functions: Determines the price of a transaction. Provides liquidity by transferring ownership of assets from one agent to the other. Performs measurement & management of asset price risk. There are various types of financial markets doing specialised tasks. The types of financial markets can be seen today are: 1.  Capital Markets:  Consists of primary markets & secondary markets. Newly issued bonds & stocks are exchanged in the primary market & already existing bonds & stocks are exchanged in the secondary market. Bond market provides financing through issuance & trading of bonds whereas shares are traded in stock markets. 2.  Money Market:  Facilitates short term debt financing & capital. 3.  Derivative markets:  Provides instruments for controlling financial risks. 4.  Foreign Excha...

1. FINANCIAL MARKET TYPES OF FINANCIAL MARKET INSTRUMENTS • Money market instruments. • Capital market instruments. • Hybrid instruments. MONEY MARKET The money market can be defined as a market for short-term money and financial assets that are near substitutes for money. The term short-term means generally a period up to one year and near substitutes to money is used to denote any financial asset which can be quickly converted into money with minimum transaction cost. MONEY MARKET INSTRUMENTS Call/Notice Money Treasury Bills Certificate of Deposit Commercial Papers CALL / NOTICE-MONEY MARKET Call/Notice money is the money borrowed or lent on demand for a very short period. When money is borrowed or lent for a day, it is known as Call (Overnight) Money. Intervening holidays and/or Sunday are excluded for this purpose. Thus money, borrowed on a day and repaid on the next working day, (irrespective of the number of intervening holidays) is "Call Money". When money...

  Financial Market   Broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically defined by having transparent pricing, basic regulations on trading, costs and fees and market forces determining the prices of securities that trade. Some financial markets only allow participants that meet certain criteria, which can be based on factors like the amount of money held, the investor’s geographical location, knowledge of the markets or the profession of the participant.   Financial markets can be found in nearly every nation in the world. Some are very small, with only a few participants, while others – like the New York Stock Exchange (NYSE) and the forex markets – trade trillions of dollars daily. Most financial markets have periods of heavy trading and demand for securities; in these periods, prices may rise above historical norms. The co...