Lecture 01 islamic financial institutions and markets (ge30003)
13
The Functions of Financial Institutions and Markets(Topic 01) Main Reference International Centre for Education in Islamic Finance. (2006).Islamic Financial Institutions and Markets..Kuala Lumpur: INCEIF
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Transcript of Lecture 01 islamic financial institutions and markets (ge30003)
The Functions of Financial Institutions and Markets(Topic 01)
Main ReferenceInternational Centre for Education in Islamic Finance. (2006).Islamic Financial Institutions and Markets..Kuala Lumpur: INCEIF
Synopsis
Introduction History Creating and Transferring Money Accumulating and lending savings Marketing and Transferring Financial assets Financial Planning Summary
Introduction
Financial market Financial Institutions Surplus and Deficit Units
History and development
The basic Stage
-----Barter Trading -----Commodity Money
History and development
The Second Stage
-----Primary Debt Limitations: i. Maturity Problem ii. Default risk iii. Liquidity problem
History and development
The Third Stage
-----Conventional
History and development
The Current Stage --Savings and Credit markets ---Money and Capital Market
Crating and Transferring money:
Money:
---Medium of Exchange
---Unit of Account
----Store of value
Money Creation:
---Deposit Expansion Multiplier
--- Effect on Economy
Transferring money:
Cash Cheque Electronic means of Payments
---Direct Funds Transfer
---Payments cards
Accumulating and lending Savings:
Household Sector Corporate sector Government sector Foreign Sector
Marketing and Transferring financial Assets
Limitations of Tangible assets Benefits of Financial assets
Financial Planning
Convenience Protection against fraud Quality of Investment Selection Low transaction cost
End
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