Case Studies for discussion
Case Study 1
On 25th August 2014,a cheque dated 01.09.2014 for
Rs5000 is presented and paid, reducing the balance in
the account to Rs2000/.
Two days later, a cheque dated 23.08.2014 for Rs6000/ is
presented but returned for th

Classifications of Financial
Institutions
Financial institutions
This segment is divided into two types of Institutions:
Regulators
Intermediaries
Financial Sector - Regulators
INTERMEDIARIES
Intermediary Financial Institutions are essentially of
two type

Private Equity
Thoughts before considering Private Equity
Are you willing to sell some of your companys shares
to a private equity investor?
Does your company have high growth prospects ?
Are you and your team ambitious to grow your company rapidly?
Does

Structured Financing
Structured Finance
It is a financing model for certain type of Assets
In this model,the Assets are isolated from the
originator
Simultaneously the risk element therein is also
mitigated.
Liquidity and risk transfer is typically ac

Negotiable Instrument Act 1881
Cheques
Instrument means any written document
by which a right is created in favour of
some person.
Get up to speed
Negotiable means
a)Freely transferable from one person to
another
b)Transferable free from defect
Get up to

.
Structured Finance
Structured Finance
It is a financing model for certain type of Assets
In this model,the Assets are isolated from the
originator
Simultaneously the risk element therein is also
mitigated.
Liquidity and risk transfer is typically ac

A financial system may be defined as a set of
institutions,
instruments
and
markets
which
promotes savings and channels them to their
most efficient use.
It also consists of individuals (savers),and users
of savings (investors).
Financial System
Financial

AAMS1773 QUANTITATIVE STUDIES
FORMULAE
Mean, raw data
x
x
=
x=
N
n
Standard deviation, raw data
=
s=
x
N
x
2
2
x
N
Mean, grouped data
fx
fx
=
x=
f
f
Standard deviation, grouped data
2
=
( x )2
2
fx
f
2
( fx )
2
n
s=
n 1
c n
Median = Lm + m f m

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 8: FINANCIAL MATHEMATICS (A)
ARITHMETIC PROGRESSION
An arithmetic progression (AP) is a sequence of numbers
which increases or decreases by a fixed constant amount
called the common difference (d).
Examples:
(i) 2, 8,

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 8: FINANCIAL MATHEMATICS (B)
ANNUITIES
An annuity is a sequence of fixed equal payments (or
receipts) made over uniform time intervals. Some common
examples of annuities are:
(a) monthly wages
(b) insurance premiums
(

AAMS 1773 QUANTITATIVE STUDIES
CHAPTER 7: INDEX NUMBER
An index number is used to measure changes in a variable
or a group of related variables with respect to time.
Variables (or economic commodities) may be prices,
quantities, values, wages, expenditu

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 5 CORRELATION AND LINEAR
REGRESSION
Correlation
measures the strength of the relationship between
two variables
involves a bivariate data / distribution
Regression
a study to identify the relationship between two o

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 1: INTRODUCTION TO STATISTICS AND
DATA PRESENTATION
INTRODUCTION TO STATISTICS
Statistics represent scientific procedures and methods for
collecting, organizing, summarizing, presenting and
analyzing data, as well as

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 3: PROBABILITY
TERMS USED IN PROBABILITY THEORY
Experiment
In probability term, an experiment is defined as a process
which generates a well-defined outcome that is not
predictable in advance, but where all possible

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 6: TIME SERIES ANALYSIS (A)
Time series is a set of observations of a variable taken at
specific times, usually at equal time intervals.
Examples of time series data
1. Daily output of a factory for the past three wee

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 6: TIME SERIES ANALYSIS (B)
Measuring The Components
(b) Identifying the seasonal component
Seasonal variation has a distinctive characteristic of being
periodic with a recurring pattern from year to year, month to
mo

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 2: DATA DESCRIPTION (B)
MEASURES OF DISPERSION
Measures of dispersion help us to understand the spread or
variability of a set of data. It gives additional information to
judge the reliability of the measure of centr

AAMS1773 QUANTITATIVE STUDIES
CHAPTER 2: DATA DESCRIPTION (A)
MEASURES OF CENTRAL TENDENCY (LOCATION)
The measures of central tendency is usually called the
average. Central tendency is a single value situated at the
centre of a data and can be taken as a

Classifications of Financial
Institutions
1
Financial institutions
This segment is divided into two types of Institutions:
Regulators
Intermediaries
2
Financial Sector - Regulators
3
INTERMEDIARIES
Intermediary Financial Institutions are essentially of
tw

RTGS/NEFT
Payments and Settlement
Systems in Banks
Payment and Settlement Act ,2007 : PSS Act 2007
The PSS Act, 2007 provides for the regulation and
supervision of payment systems in India and designates
the Reserve Bank of India (Reserve Bank) as the
aut

MUTUALFUNDS
Concept
A Mutual Fund is a trust that pools the savings of a
number of investors who share a common financial
goal.
The money thus collected is then invested in capital
market instruments such as shares, debentures and
other securities.
The

Factoring & Forfeiting
What is Factoring?
FACTORING is a continuing arrangement
between a financial institution (the factor)
and a business concern (the client) selling
goods or services to trade customers (the
customer) whereby the factor purchases the
c

Development Banks in India
Definition of Development Banks
1. In General sense,
"Development banks are those financial institutions
whose prime goal (motive) is to finance the primary
(basic) needs of the society. Such funding results
in the growth and de

Banking Regulation Act
1949
The Banking Regulation Act was passed as the
Banking Companies Act 1949 and came into force
w.e.f 16.3.49. Subsequently it was changed to
Banking Regulations Act 1949 wef 01.03.66
Some of the important provisions of this Act
De

Financial Sector Reforms
in India
A Summary
ThereformprocessinIndiawasinitiatedtoacceleratetheeconomicgrowth
anderadicationofpoverty.
ThereformprocesswasstartedinJuly1991.
Thereformprocessenvisagedasystemicshiftto
a)
amoreopeneconomywithgreaterrelianceupo

Financial Sector Reforms
in India
A Summary
The reform process in India was initiated to
accelerate the economic growth and eradication of
poverty.
The reform process was started in July 1991.
The reform process envisaged a systemic shift to
a) a more ope

The banking sector is crucial for an economy, since it
channelizes savings into investments.
It provides credit to the productive sectors and
finances the needs of the real economy.
For emerging economies, banks are more important
since they are import

ROLE OF COMMERCIAL BANKS IN
THE ECONOMIC DEVELOPMENT OF
A COUNTRY
RoleofCommercialBanksintheEconomic
DevelopmentofaCountry
Commercial banks play an important and active
role in the economic development of a country.
If the banking system in a country is e

Financial Sector Reforms
in India
A Summary
The reform process in India was initiated to
accelerate
economicgrowth
eradicationofpoverty.
ThereformprocesswasstartedinJuly1991.
Thereformprocessenvisagedasystemicshiftto
a)a more open economy with greater rel

Know Your Customer (KYC)
Concept and Compliance requirements
Banks are required to comply with
KYC norms before opening a Bank
account for an Individual or an entity.
The objective of KYC norms is to restrict
a) Money laundering
b) Terrorist financing,
Wh