Financial Markets And Services (B.Com) 5th Sem Previous Year Solved Question Paper 2022

Practice Mode:
9.

Which are the most widely used financial instruments used in the Indian Financial Market?

Explanation

The Indian financial market features a variety of financial instruments, but some of the most widely used ones include:

1. Equities (Stocks): Shares of publicly traded companies, bought and sold on stock exchanges like the BSE and NSE.
2. Fixed Income Instruments: These include government bonds, corporate bonds, and debentures.
3. Mutual Funds: Investment vehicles that pool funds from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.
4. Derivatives: Futures and options contracts, used for hedging or speculative trading.
5. Currency and Commodities: Trading in foreign exchange (forex) and commodities like gold and silver.
6. Bank Deposits: Savings accounts, fixed deposits, and recurring deposits offered by banks.
7. Real Estate Investment: Investments in real estate properties, such as residential and commercial properties.
8. Exchange-Traded Funds (ETFs): Investment funds that are traded on stock exchanges and provide exposure to various assets.
9. Government Securities: Bonds issued by the government to raise funds for various purposes.
10. Insurance Products: Life insurance policies, health insurance, and other insurance products.

These are some of the key financial instruments used in the Indian financial market, catering to different investment and risk preferences.