bnepathshala

  Risk              Risk is basically the possibility of something bad happening. In business and finance, the risk is the chance that an investment’s actual outcome will differ from the expected outcome. Risks can include the possibility of losing all or some of the original investment in a business. However, risk can be calculated to some extent using historical data and market factors. It’s also important to note that the higher the risk an investor is willing to take, the greater the protentional return. No investment is free of risks, but there are some investments that have lower practical risks than others. There are two main types of financial risk; they are systematic risks and unsystematic risks.  Systematic risk  can affect the entire economic market or a larger part of the market. This involves interest rate risk,  inflation  risk, sociopolitical risk, and currency risk.  Unsystematic risks , on the other hand, are a type of risk that only affects a specific company or

Unit-1 Introduction  Financial Credit It means a letter of credit used directly or indirectly to cover a default in payment of any financial contractual obligation of the Company and its Subsidiaries, including insurance-related obligations and payment obligations under specific contracts in respect of Indebtedness undertaken by the Company or any Subsidiary, and any letter of credit issued in favor of a bank or other surety who in connection therewith issues a guarantee or similar undertaking, performance bond, surety bond or another similar instrument that covers a default in payment of any such financial contractual obligations, that is classified as a financial standby letter of credit by the FRB or by the OCC Objectives: 1-This service is provided by the financial institutions to fulfill the needs of the weaker sections of society. 2- It focuses to help people to buy financial products at affordable prices. Like deposits, loans, insurance, payment services, etc.  3- It s