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Mishkin FMI9ge PPT C02
Mishkin FMI9ge PPT C02
Chapter 2
Overview of the Financial
System
• Eurocurrency Market
– Foreign currency deposited outside of home country
– Eurodollars are U.S. dollars deposited, say, London.
– Gives U.S. borrows an alternative source for dollars.
• World Stock Markets
– U.S. stock markets are no longer always the largest—
at one point, Japan’s was larger
• These banks provide guidance in selection of industrial units and extend direct financial
assistance to partly cover their financial requirements, Such banks are responsible for
speeding up the pace of economic growth in the country in conformity with the national
objectives, plans and priorities.
• Their core functions are:
• Direct financial assistance
• Mobilization of domestic savings
• Expanding entrepreneurial base by encourage new comers
• These are firms which buys and discounts bills of exchange, banker'
acceptance, commercial paper, etc. Discount houses also tender for treasury
bills, deal in short-dated government bonds, and are an important part of the
short-term money markets.
• First Credit & Discount Corp Limited
• National Discounting Services Limited
• Speedway Fordmetall (Pakistan) Limited
• Insurance is a hedge against the risk of a contingent and uncertain loss. In other words, it is
the equitable transfer of the risk of a loss, from one entity to another, in exchange for
payment. For this service, the insurer charges a fee called premium depending upon the risk
involved.
• IGI Insurance Limited
• East West Life Assurance Company
• New Jubilee Life Insurance Company Limited
• East West Life Assurance Company
• Data Bank International