The financial services can also be called financial intermediation. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of them, particularly to corporate customers. | Revise Lecture 12 Financial Services Q1: Define financial services means? Ans1: All types of activities which are of financial nature, could be brought under the term ‘Financial Services’. The term in a broad sense, means ‘mobilizing and allocating savings’. Thus, it includes all activities involved in the transformation of savings into investment. Ans 1: The financial services can also be called financial intermediation. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of them, particularly to corporate customers. Q2: What are the classifications of financial services? Ans 2: Classification of Financial Services: The financial intermediaries in Pakistan is traditionally classified into two; Capital market intermediaries Money market intermediaries Q3: What are fund-based and non-fund based activities? The fund-based activities include; Underwriting or investment in shares, debentures, | Revise Lecture 12 Financial Services Q1: Define financial services means? Ans1: All types of activities which are of financial nature, could be brought under the term ‘Financial Services’. The term in a broad sense, means ‘mobilizing and allocating savings’. Thus, it includes all activities involved in the transformation of savings into investment. Ans 1: The financial services can also be called financial intermediation. Financial intermediation is a process by which funds are mobilized from a large number of savers and make them available to all those who are in need of them, particularly to corporate customers. Q2: What are the classifications of financial services? Ans 2: Classification of Financial Services: The financial intermediaries in Pakistan is traditionally classified into two; Capital market intermediaries Money market intermediaries Q3: What are fund-based and non-fund based activities? The fund-based activities include; Underwriting or investment in shares, debentures, bonds etc. of new issues (primary market activities) Dealing in secondary market activities. Participating in money market instruments such as commercial papers, certificate of deposits, treasury bills and discounting bills. Dealing in foreign exchange market activities The non-fund based activities: The non-fund based activities can also be called ‘fee based’ activities. Today, customers, whether individual or corporate are not satisfied with more provisions of finance. They expect more from financial service companies. Hence, a wide variety of services are being provided under this head, which include; Q4: What are modern activities? Management the capital issue, . management of pre-issue and post-issue activities relating to the capital issue in accordance with the SECP guidelines. Making arrangements for the placement of capital and debt instruments with investment institutions. Arrangement of funds from financial institutions for the client ‘project cost or their working .
