FINANCIAL SERVICES

What is the primary role of financial services?

• Producing consumer goods

• Facilitating economic activities

• Conducting scientific research

• Providing legal services

What are the types of financial services typically offered?

• Medical services

• Educational services

• Banking, insurance, and investment services

• Hospitality services

What distinguishes traditional financial activities from modern ones?

• Technological advancements

• Higher profit margins

• Government regulations

• Lower customer satisfaction

What are challenges faced in the financial services sector?

• Decreasing demand for services

• Regulatory compliance

• Lack of qualified professionals

• Excess market liquidity

What is the significance of innovative financial instruments?

• Reducing market volatility

• Creating new investment opportunities

• Eliminating financial risks

• Lowering interest rates

What is the current scenario in the financial services sector?

• Increased customer satisfaction

• Decline in digital banking usage

• Rise of fintech companies

• Limited global investment

What is the role of SEBI in regulating mutual funds?

• Ensuring fair market practices

• Setting international trade policies

• Promoting agricultural exports

• Regulating educational institutions

What are the advantages of mutual funds for investors?

• Guaranteed returns

• High liquidity

• Diversification of risk

• Direct ownership of assets

What types of services are provided by merchant banking?

• Retail banking

• Underwriting and advisory

• Medical insurance

• Agricultural loans

How does securitisation benefit financial institutions?

• Reduces liquidity

• Increases capital requirements

• Diversifies risk

• Limits investment options