Tag: business organisation

State Bank of India was originally known as Imperial Bank. Imperial Bank of India, 1955, was renamed on 30 April 1955 to the State Bank of India. Imperial Bank was established on 1921. Now, State Bank of India is one of the largest commercial banks of India.

An endorsement is said to be Partial endorsement, if the endorser purports to transfer to the endorsee only a part of the amount payable. In simple terms, endorsement which allows transferring to the endorsee a part of the amount payable is known as partial endorsement.

An entry strategy in which a firm maintains its production facilities within its home country and transfers its products for sale in foreign markets is known as exporting. Exporting can be defined as the act or process of sending goods and services to a foreign country for sale. Exporting helps to upgrade the rate of economic growth.

The process by which allocation of funds is done is called financial intermediation. This process helps to channelize funds from the borrowers to lenders. Financial intermediation generally cause reduction in transaction cost. This process is mainly performed by the financial intermediaries, such as stockbroker, commercial bank, investment bank, etc.

Certificates of deposit (CD) help to mobilize a large amount of money for short periods- this is a true statement. CDs are freelyy negotiable. It can be issued for a period of 91 days to 1 year. It is generally issued at a discount on the actual amount of deposits held.

Holders of assets can readily sell their financial assets through the mechanism of the financial market. This is because financial markets provide liquidity to Financial Assets. Liquidity of financial assets means that financial assets can be converted into cash in a short time, with little or no loss in value.

The financial market contributes towards the nation's economic growth and development. This statement is True. 
Reasons : 
(a) The place where people and institutions borrow money are brought together with those having surplus funds, is called a Financial Market.
(b) The financial market contributes to national growth by facilitating continuous flow of surplus fund to business enterprises (sick and deficit units) through its allocative function ensuring higher rate of return to the savers/household by investing the scarce resources in the enterprises having higher productivity, increasing the rate of capital formation. 
(c) The financial market contributes a lot to the development of the entreprenurial class by financing their business requirements. It obtain funds from individual households private and public sector units. Central govt. etc. and supply these funds to those business units who need it for productive purpose.
(d) The components of Financial Market is money market and capital market. It helps in accelerating the rate of industrial and economic development of the country. As a result, the standard of living and social welfare goes up. Thus, Financial market contributes towards the nations growth and development.

Primary market deals with the issue of new securities. That is, through the primary market a company raises capital directly from the borrowers. That is, once the securities are issued in primary market, they are then traded in the secondary market. It is in this sense that both the markets complement each other