Singapore Banking and Finance Services Sector

Singapore Banking and Finance Services Sector Introduction What is the banking and finance services sector? Definition of banking and finance gives information of definition of banking and definition of finance. Finance means circulation of capital such as money and currency, or procurement and management of the capital, in connections with financing activities. Finance and banking service is Services and products provided to consumers and businesses by financial institutions such as banks, insurance companies, brokerage firms, consumer finance companies, and investment companies all of which comprise the financial services industry (InvestorWords, 2015). Two of both sectors are related to each other. What does this sector mean to the Singapore economy? Banking and Finance of Singapore economy is finance and banking services. In recent years, Asian countries are receiving attention from the world because they have an infinite of possibilities and capabilities such as enormous number of population, geographical position and abundant natural resources. Most of all, Singapore have grown up and developed rapidly. Since 1970’s, Singapore was called ‘four Asian dragons’ with several Asian countries, which are Hong Kong, Taiwan and South Korea because Singapore and those countries could become rapidly industrialized by cheap and plentiful labor and active export policy. Especially, Singapore have been developed by finance and banking services. Contribution of these sectors to the national economy Singapore economy could be developed by contributions of finance and banking services sector such as Job market and Financial Hub and attracting foreign direct investment and so on. Especially, the reasons of developing is that Singapore is a huge financial hub and attracting foreign direct investment. Early Singapore was limited land space and natural resources. To overcome those disadvantages, Singapore pursued trade liberalization. And to make the best use of a geographic benefit, this country intermediated trade. Therefore, Singapore is able to be a finance hub and attract foreign direct investment. Nowadays, Singapore is an international major financial trading hub to lift up its head in dealings of foreign exchange and the domain of asset management. Foreign-exchange market of Singapore is ranked top five in the world after London, New York, Zurich and Tokyo. And then, there is 110 number of foreign banks. The scale of asset management is about S$ 1trillion. Recently, Singapore is pushing forward a business of Islam finance. For attracting foreign direct investment, Singapore is a trade liberalization because there is a transport center by its conditions of a location. Because of using this benefit, there is total 5 container terminals and 45 berths. This container port processes one-fifth amount of international transhipment. Moreover, Singapore airport ‘Chang-I’ is connecting with 200 cities in 60 countries. There is 85 airlines. Second contribution is Job Market. According to improving Singapore’s finance and banking services, there is the number of foreign banks and businesses. It means that getting job in Singapore is able to be easy. And then, GDP per capita in Singapore also will increase. Below graph is GDP per capita in Singapore from 1960 to 2013. -GDP per capita of Singapore (GDP of Singapore, bln. Dollar, 1970-2013) According GDP per capita in Singapore line graph, the GDP per capita was rising steadily from 1970 to 2013. In 1960, the GDP per capita is only 925 USD. It is the lowest GDP per capita from 1970 to 2013, ranked 74th in the world. For example, the figure measured lower than GDP per capita of Indonesia (86 USD) and Malaysia (343 USD), which are Singapore’s neighbor countries, and then one of developing countries in the Asia currently. On the contrary, the highest GDP per capita was a near 54,649 USD in 2013. The measured value of GDP (54,649 USD) per capita is higher than some developed countries such as U.S.A (5126 USD) in about 6 times, Japan (2016 USD) in 2 times, and Germany (2712 USD) in 3 times. Generally, this graph is drawn by upward curve. (Kushnir, n,d) Challenges facing by this sector in the future Singapore economy has been improved by banking and finance services. However, the sector is able to face challenges such as dependency of global economy and other regional financial hub in the future. Singapore is the biggest Asia finance hub. Thus, economy of Singapore is exposed and influenced by global economic conditions. And then, it is shown by GDP of Singapore. GDP of Singapore, 1970 to 2013 (GDP per capita in Singapore, bln. Dollar, 1970-2013) The Above line graph illustrates GDP of Singapore from 1970 to 2013. Generally, GDP of Singapore draws upward curve. In 1970, GDP of Singapore was an estimation of 1.9 billion USD (United States Dollar). It is ranked 74th in the world. By 1980, the GDP slowly increased to about 12.08 billion USD. Moreover, after 1980, the GDP took a sharp increased from to 1997. However, from 1997 to 2004, the graph of GDP is generally decreasing by Asia economic crisis. The issue appeared from South Korea. Some of Asian countries tried to be capital decontrol. But without capital, the countries should take out a loan from IMF (International Monetary Fund). Thus, Singapore economy was also affected from Asia economic crisis. Eventually, most companies in Singapore ought to restructure with layoff, and is under threat of bankrupt. Nevertheless, once again, it steadily increased to the year 2013. In 2013, the GDP was about 297.94 billion USD. (Kushnir, n,d) According to GDP, after 2004, Singapore economy has been grown. However, from 1997 to 2004, had been decreasing because of Asia economic crisis in the period. It means that the same economic condition will be happened by global and regional economy in the future. Other challenge in Singapore is competitive from other regional financial hub. The number of Asian international financial centers (IFCs) such as Seoul in South Korea, Tokyo in Japan and Shanghai in China want to become international financial hub. Nowadays, the international financial centers of those cities are developing and making an effort, and then each cities are competitors of Singapore financial center. For example, one of the competitor, Seoul in South Korea, establish the Korea National Committee for Pacific Economic Cooperation (KOPEC). In 2007, KOPEC had a convention of an international conference in Seoul with 3 Asian countries such financial centers (Hong Kong, Seoul, Shanghai, Tokyo and Singapore). Another microeconomic challenge is a ‘Shortage of skilled talent’. In Singapore, is already international financial hub, there is the number of business and banks are having competitions. If employees in organization have shortages of skill and talent, they would not survive in the rapidly changing world economic situation. For example, ‘Accounting and writing skills are crucial’, ‘International talent in High demand at money-center banks’, ‘Marketing types wanted’, ‘Days of easy hours long gone’ and then ‘MBA optional’. They should develop their own skills and talents, and then may follow the economic flow. (Hean Hoo, 2015) Strategic planning by this sector in the present and the future In Singapore’s finance and banking services sector, there is the number of competitors such as banks and businesses as well as financial centers from other Asian cities. Singapore should have strategic planning such as training and education, and global innovation. Training and Education Most of organizations should train and educate their employees for the rapidly changing world economic situation for employees’ effective, accurate and practical performance of tasks. After training and education, the employees would be more developed. One of way in effective training and education is E-learning by developed technology. When organizations open online lecture, the employees may get the organization’s training and education through their Smart-Phone and Tablet PC. This kind of training for adults looks helpful and effective for them that they can be able to learn all of the necessary things that they need in improving their skills and techniques. (Stephanie, 2014) Stress testing and risk management Stress testing for risk management is one of the useful method for identifying how a portfolio would be fair during a period of financial crisis. One of the most general used ways of stress testing is ‘The Monte Carlo’ simulation. Moreover, this simulation technique is also used to be aware of how several risks will influence an organization and industry. Before an economic a financial crisis, using the simulation is able to detect and predict future economic crisis with solutions. Therefore, countries and organizations ought to do stress testing and manage future risks. Conclusion How the MAS supports this sector? The Monetary Authority of Singapore (MAS) is a Singapore central bank, a kind of Singapore government department. MAS has authority of regulation and supervision of Singapore finance and banking, and then it issues money and drafts a law of financial and banking policy. This department focuses on exchange rate rather than interest rate otherwise other central banks. According to developing Singapore, Singapore is complicated by the number of bank works with finance, so the government established ‘Monetary Authority of Singapore Act’ in January, 1991. (Monetary Authority of Singapore, 2014) What is the outlook for the future of this sector in Singapore? Nowadays, Singapore is one of the most developed countries in the world, as well as in Asia because of the finance and banking services. Through the GDP and the GDP per capita from 1970 to 2013, the graphs are illustrated that it has increased and grown up in the future. In the end, Singapore finance and banking services will be more by several contributions. However, Singapore will also face several challenges in the future, so the country should have strategic planning of the sector, and predict and manage future risks. References InvestorWords (2015) InvestorWords. Availanle at: http://www.investorwords.com/19080/financial_services.html [Accessed 15 May 2015]. Kushnir, I. (n.d) World macroeconomic research, 1970-2013. Available at: http://kushnirs.org/macroeconomics/gdp/gdp_singapore.html [Accessed 15 May 2015]. Kushnir, I. (n.d) GDP of Singapore, bln. Dollar, 1970-2013. Available at: http://kushnirs.org/macroeconomics/gdp/gdp_singapore.html [Accessed 16 May 2015] Kushnir, I. (n.d) GDP per capita in Singapore, bln. Dollar, 1970-2013. Available at: http://kushnirs.org/macroeconomics/gdp/gdp_singapore.html [Accessed 16 May 2015]. Hean Hoo, W. (2015) Economics Policy and the Global Environment LECTURE SLIDES. Kaplan/Dublin: Veritas. Stephanie, R. (2014) ‘Workplace Training and Education: Effective Methods for Training Adults’, Human Resources Blog, 17 Feburary. Available at: http://tribehr.com/blog/workplace-training-and-education-effective-methods-for-training-adults [Accessed 18 May 2015]. Monetary Authority of Singapore. (2014). Monetary Authority of Singapore. Available at: http://www.mas.gov.sg/about-mas/overview.aspx [Accessed 17 May 2015].

Analysis of Alex Pardee’s Artwork

What is a leper anyway? In the past, it was simply a disease. When you caught this disease you were isolated. Taken out of society, never to return again. Your life would never be the same again. As time passed this disease obviously died out. Nowadays not many people have leprosy in its serious form. But we do have leprosy of a different sort. This leprosy is even worse than the physical illness. It is something that gets worse over time and will continue to do so unless we as human beings decide to change our actions. Today, those who are different are thought to be lepers. These people should be rejected, shunned. They are unusual, strange; we cannot accept what they believe in. Why is this so? Why have we been brainwashed so thoroughly by the media that we don’t see that being different is something we humans create in our minds. People are â€Å"different† only because we label them to be that way. They are lepers, only because we make them so. What is so bad really about being a leper? Being different? This image addresses these questions. We can see that in the image there are two odd looking creatures who are bleeding onto a hand with a chicken’s head. This chicken’s head is dripping in blood while there is a small bar of soap at its feet. The only thing in colour is the blood which signifies that it symbolises something important. And so he bathed in the blood of the lepers. By this phrase we understand that the creature in the middle is the object which is â€Å"bathing in the blood†. Again, why would anyone want to bathe in the blood of leper? Well why not? In this case the two odd looking creatures would be the lepers. If the lepers in this image represent people who are different, then it could also mean that these people are so different that they could be considered to be a subculture of some sort. It is understandable to believe that some subcultures are actually desirable to some people. This obviously depends on the person’s personal taste. They may want to be involved in the subcultures of nerds, jocks, emo’s, scene kids, goths, etc etc. The leper character may not even be focusing on a particular sub culture. They can also represent the chameleons of society, changing themselves to appeal to people. Again, this depends on your perspective. The leper character only represents a chameleon of society if you choose to believe that it does so to persuade you to join the subculture that it is portraying itself to be. Why would people choose to believe this? Only to feel accepted. They may be so rejected that all they want and need is a feeling of belonging even if it is found a way which is not entirely truthful or right. Rather, it is an illusion. So do we humans warp what is there to suit our cases and make certain situations more pleasurable to us? Definitely. This leads us to the importance of the blood in the image. The blood can be viewed as the initiation process. The blood, which is the only coloured thing in the image symbolises this initiation process. This is the only part of the image in colour, because this process is the most important part of belonging to a group of people or a subculture. Bathing in the blood would be catching the leper’s disease, or otherwise, finally being a part of the lepers. The feeling of belonging settles in for the first time. Now that the person is a part of the lepers, can they really think of themselves as lepers? They are now able to understand and empathise with the subculture they have joined so would it actually seem so different to them now? No it wouldn’t, further underlining the fact that we only label people as being different, of being social lepers, only because we do not understand them. However if we were a part of what they believe in, i. e. a part of their subculture, then we would no longer think they are so different. Only an outsider to this subculture would consider them to be lepers. Again, we humans label that which is not. We have established what it means to be different and why it is important, but what about the bar of soap at the chicken hand creature's feet? What would this symbolise? This symbolises the other perspective of this two sided argument of acceptance. The soap represents the cure for leprosy. The means to be cleaned from this disease. In the modern world this soap bar would represent the views of people who believe that removing yourself from a subculture is the true path to acceptance. However, like the size of the soap bar, these people are very few because we all have an innate need to belong to a community, society, club, culture or subculture. In short, we all need to feel like we belong somewhere, no matter how much of an illusion this feeling of belonging is. We desire to be persuaded to believe in something only to feel accepted and wanted by a community. This image drawn by the talented Alex Pardee shows us all these innate human desires in a way which persuades us to believe that we do have them. Of course this is achieved by this talented artist by using a great many visual techniques. First of all the area of the image with the highest salience is the blood because like we established, the blood – which represents the initiation process – is one of the most important aspects of the process of belonging. The importance of this transition stage is further underlined by the fact that the rest of the image is black and white hand sketches making the blood also the area with the highest colour modality. When we look further into the image and analyse the finer details we notice that the background is non-contextualised, in fact, it is completely white. This helps us to not stray from the main message that the image is trying to give. It keeps us focused on the foreground while also giving extra information on what might be going on in the image. This information is given to us in the text written at the top. The foreground in question is the chicken hand with the blood being poured onto it. It is not in fact the text. This is because the image is in the centre and the gushing blood attracts us to the image at hand. This image would also be the focal point again highlighting the important message being given by the image. The perspective that we see the image also gives us a whole new view on the scene. We see the main subject (the chicken hand) in the frontal view. Seeing as the subject is the most important part of the image, it is safe to say that the whole image is viewed in the frontal perspective. However, it is important to note that we see the â€Å"lepers† side on. This suggests to us that we are not part of the lepers, that we are detached from them, that in fact they are different from us. The gaze of the subject is demanding. It is looking straight at the audience as if it wants to get its message across. Its message that it wants to be involved and included. The lepers on the other hand do not even have eyes. This suggests that they have nothing they want to communicate to people and are unaffected by what people think of them. The image in general is in a low modality because it is already trying to communicate a complicated message. By keeping it in simple sketches, the artist is making it easier for the audience to understand the message. The artist uses all of these visual techniques with one purpose in mind: to get the message across. The message that being different is not a negative thing. It is simply a means of feeling like you belong. Being a leper does not mean everything is lost. There will be a deformity, but one ought to bear in mind that they still have their God-given potentials in them. It is the duty of society, to give a helping hand, in order for these â€Å"lepers† to exhibit what they have in them to world. You see, it’s not them. It’s you.

Analysis Of The Movie Famous - 1203 Words

The image I’ve chosen is a still from one of Kanye West’s recent music videos titled â€Å"Famous.† I found this video on YouTube a couple months back when it was released in July and found it quite interesting. The specific still I’m using from the video is shown towards the end of the video when the camera completely zooms out revealing all the sleeping bodies. One of the main reasons this image captured my attention and caught me off guard was because of the people featured in the video and the fact that they were all completely naked. Here is a little bit of background on the song itself. During the 2009 VMAs Taylor Swift won the award for â€Å"Best Female Video† over Beyonce who was also nominated for the same category. As Taylor was giving her acceptance speech, Kanye came onto the stage and interrupted her by saying that â€Å"Beyonce had one of the best videos of all time.† Because of this â€Å"historical moment† (if you will ) Kanye claims that Taylor Swift is only famous because of him. A popular line from the song â€Å"Famous† is â€Å"I feel like me and Taylor might still have sex why?/ I made that b**ch famous.† Taylor of course did not like this and even talked about this in her Grammy acceptance speech basically saying that she worked hard to get to where she is. Since then there’s been drama between Taylor and The Wests (Kim and Kanye). 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Global financial market - Free Essay Example

Sample details Pages: 11 Words: 3396 Downloads: 7 Date added: 2017/06/26 Category Finance Essay Type Argumentative essay Did you like this example? INTRODUCTION:- MONEY MARKET:- Money market is the global financial market for short-term borrowing and lending and provides short term liquid funding for the global financial system. The average amount of time that companies borrow money in a money market is about 13 months or lower. Some of the more common types of things used in the money market are certificates of deposits, bankers acceptance, repurchase agreements and commercial paper to name a few. Basically what the money market consists of is banks that borrow and lend to each other, but other types of finance companies are involved in the money market. What usually happens is the finance companies fund themselves by issuing large amounts of asset backed commercial paper that is secured by the promise of eligible assets into an asset backed commercial paper conduit. Your most common examples of these are auto loans, mortgage loans, and credit card receivables. Don’t waste time! Our writers will create an original "Global financial market" essay for you Create order There are different instruments in the money market which offering different returns and different risks are given following:- Treasury Bills (T-Bills) Certificate Of Deposit (CD) Bankers Acceptance CAPITAL MARKET:- Capital market is a type of financial market, it includes the stocks and bonds market as well. But in general the capital market is the market for securities where either companies or the government can raise long term funds. One way that the companies or the government raise these long term funds is through issuing bonds, which is where a person buys the bond for a set price and allows the government or company to borrow their money for a certain time period but they are promised a higher return for allowing them to borrow the money, the higher return is paid through interest that accrues on the money that the government or company borrows. Another way that the companies or government can raise money in the capital market is through the stock market, most of the time you dont see the government as a part of the stock market, but it can actually happen so we need to include them. But how the stock market works is that the companies decide to sell shares of their stock, which is basically ownership in the company, to ordinary people and other companies, as a way to raise money. The people who buy the stock are usually given dividends each year, if the company has agreed to pay out dividends, so that is another possible return on their investment. The capital market actually consists of two markets: Primary market secondary market Primary market is where new issues are distributed to investors, and the secondary market where existing securities are traded. Both of these markets are regulated so that fraud does not occur and in the United States the U.S. Securities and Exchange Commission is in charge of regulating the capital market. The different types of financial instruments that are traded inthe capitalmarkets are equity instruments credit market instruments insurance instruments foreign exchange instruments hybrid instruments derivative instruments DIFFERENCE BETWEEN MONEY MARKET AND CAPITAL MARKET:- Basically the difference between the capital markets and money markets is that capital markets are for long term investments, companies are selling stocks and bonds in order to borrow money from their investors to improve their company or to purchase assets. Whereas money markets are more of a short term borrowing or lending market where banks borrow and lend between each other, as well as finance companies and everything that is borrowed is usually paid back within thirteen months. Another difference between the two markets is what is being used to do the borrowing or lending. In the capital markets the most common thing used is stocks and bonds, whereas with the money markets the most common things used are commercial paper and certificates of deposits. SIGNIFICANCE OF CAPITAL MARKET MONEY MARKET WITH EXAMPLES:- The capital market plays a pivotal role in a market system. It is the financial system that facilitates the flow of funds between buyers and sellers in the various markets, it allows the plumber, teacher, and banker to specialize in what they do best and for society to minimize the resources devoted to the transactions that must accompany any specialization. A financial system also stimulates borrowing and saving. A key to economic growth is investment spending on new machines and factories. For our plumber and carpenter, this meant better tools, and anyone who has done plumbing and carpentry knows the time savings of better tools. But where would we find the funds to purchase the tools? From the recycling of the savings of others. If it was not for the savings, the surplus of production above that earmarked for consumption, there would be no way to find the resources necessary for spending on machinery which produces no direct, immediate benefit to the consumer. It is no surprise that the former Eastern European countries attempted to develop capital markets as they struggled with their conversion from command systems to market systems. If they were to establish an array of markets in the real sector for the exchange of goods and services, they would need to establish the financial markets needed to provide the money for these transactions. The capital market functions as the set of pumps and hoses that delivers the oil where it is needed, to the markets. Firms come to the capital market to finance their investment projects and to invest their surplus funds; households use the capital market when they borrow money to buy a home or a car and when they invest their surplus funds in savings accounts, stocks, bonds, mutual funds, life insurance policies, or pensions for later use; the government goes to the capital market every time that it needs to borrow to finance its deficit; and foreigners come to borrow money or invest it. When the oil stops, we know the consequences. The economic engine that generates jobs and goods seizes up. In the US, the most notable seizure by far would be the stock market crash of 1929, the opening event of the Great Depression of the 1930s. In the aftermath of the crash, the nations banks took holidays and shut their doors and the money needed to keep the engine running smoothly disappeared. We may recall the scene from the Jimmie Stewart movie that plays each Christmas season Its a Good Life when the Baileys Building and Loan (a bank) is threatened by a rush of people looking to get their money out. Imagine if employers could not get the money to pay wages and salaries. People would not be able to pay their mortgages and car payments, they would be unable to purchase food at the supermarket or clothes at the mall. It would not be long before the workers who produced the food, the clothes, and autos would find themselves out of work. By the time we were done we would find massi ve unemployment in the labor market and idle factories and offices in the output market. In the US at the height of the Depression, unemployment peaked at 25 percent of the labor force. The oil keeps flowing the government has heavily regulated the capital market, in part because of the widespread perception among policy makers that the capital market shock was the cause of the Depression. The agency primarily responsible for regulating the capital market is the Federal Reserve (FED), the central bank of the US. Since its inception in 1914, the FED has exerted considerable influence over the workings of the capital market, both indirectly by establishing the rules governing the behavior of the major financial institutions operating in this market, and directly by controlling the nations money supply. The Fed is the monetary authority in the US and the agency responsible for the conduct of monetary policy, something we will discuss at length in our later discussion of macro policy. Money market which is an essential segment of the financial markets generally refers to borrowing and lending for periods of a year or less. The need for a money market arises from the fact that receipts available to businesses, governments and all other economic agents do not coincide with expenditures. PRESENT SCENARIO CAPITAL MONEY MARKET :- The current condition of Indian markets have drastically improved. There is absolute transparency and instant transactions. All Indian Stock markets are now computerized andInternetTradinghas become a common phenomenon. Indian stock markets have also developed a dynamic nature and can change from a bullish temperament to a bearish slide. Any small bit of information or even a rumour from any part of the country can affect the market and is a fairly accurate indicator of the prevalent atmosphere in the region or country. People from across the country and globe get in touch with minute wise readings on the stock market and gain a lot of trading aptitude after daily seeingBSE Stock GainersorBSE top loserslist which does a world of good to theirinvestmentportfolio. Fixed Income Market scenario: Short-term money market yields continued to trend lower due to excess liquidity pressure. 3 month CD rates dropped by 75 bp from 4% to 3.25% over the month of June and are currently at 3%. Indias benchmark wholesale price index (WPI) declined to negative 1.30% for the week ending June 20, recording a fall for three consecutive weeks. The decline in inflation could be largely attributed to high base effect as WPI stood at 11.91% in the corresponding week of the last year. The bond market seems to have shrugged off the initial impact of the petrol and the diesel price hikes. The 10% (app.) hike in the petroleum prices should push up the inflation by about 75-100 bp over a period of time. Currently, we expect the WPI inflation to be in subzero levels for a period of 2-3 months. This is purely due to high base effect of last year. Post the petroleum price hike the WPI index will now move up faster than previously expected, but not as fast as to create worries of inflation within the system before the calendar year end. More recently, following the budget, the bond market was shocked to discover the huge excess borrowing of Rs.90,000 crore. The yields are currently re-aligning to the negative news. However, the views of international rating agencies are also critical given the sharp hike in fiscal deficit to 6.8% from the interim budgets estimate of 5.5% The market presently runs a lower risk of negative surprise as the budgeted tax receipts are realistic except for the corporate tax collections. However, the non-tax receipts as per the budgeted estimates of 2009-10 run the uncertainty of the 3G spectrum auction timelines. CURRENT STATE OF THE MARKETS FROM 2005-08:- Investor sentiment is largely bearish across many measures, which typically is a positive forward indicator for the market. Discerning investors that buy select securities when everyone else is selling, tend to make outsized returns over the long run. Decembers reading showed less than 1/4th of those surveyed did NOT expect a market crash in the next 6 months. The American Association of Individual Investors sentiment survey showed bearish sentiment at 54% in its December 31st reading, similarly at relative bearish levels. On the other hand, in the number of bulls increased in December according to the Investor Intelligence survey, which does not show the complete capitulation that we may have preferred to see. In fact, the pervasive stealth bull market that we start the new year with indicates investors remain too eager too us. The closing of these valuation gaps represent capital being put to work and addressing market inefficiencies. The equity markets have seen similar rallies off their November and December lows. Of particular note is the 25.5% gain in the Russell 2000 index of small cap companies from November 20th through to the end of the year versus a 17.3% rally in the SP 500, a relative outperformance of 47%. The rally has been broad with 90% of the constituents of the Russell 2000 seeing their equity prices appreciate. 30% of have seen their stock prices rise in excess of 50%. It indicates a relative return of reason and the beginning of, if not gradual, increase in risk appetite from the September to December time frame. We remain acutely aware of the risks for negative feedback into the financial markets from the precipitous decline in economic activity but believe most of the downside is priced in already. Its shown in graph which is given below:- LITERATURE REVIEW:- Are Investors Ready for Higher Interest Rates? If the economy keeps growing, it hastens the day when the Federal Reserve ends the era of 0% interest rateClick here to find out more!. TheU.S. economyis growing again has renewed the debate about where interest rates are headed with big implications for both the economy and investors. The U.S. gross domestic product report showed that the economy grew by 3.5% last quarter, a higher percentage than many were expecting, and fixed-income markets took it as a sign that a rate increase will happen sooner. Treasury prices fell after the release of the GDP figure, and the yield on 10-year U.S. Treasuries rose 0.08 points to 3.5%. A historically low rate which is reflecting the fact that the Federal Reserveis holding the short-term federal funds rate near zero in order to stimulate the economy. Its the reason why yields on bank savings and money market accounts are so paltry. Global equity fund flows turn negative: EPFR Global fund flows intoequitiesfell in the week ended as policymakers shifted focus to unwinding stimulus measures, while unemployment continued to rise, making investors question what will drive economic growth. Outflows from equity funds totalled $5.42 billion and outflows from all emerging market equity funds were at an 11-week high. Fixed-income funds drew net inflows of $3.63 billion. Only six of 24 major global funds and fixed-income fund groups tracked by EPFR Global registered inflows, despite additional liquidity resulting from another week of heavy outflows frommoneymarketfunds. Global bond funds drew fresh money for a 30th week. US bond funds remained attractive, absorbing $2.1 billion, and short-term debt funds led the way. Outflows from money market funds rebounded to $27.3 billion for the week. Govt parks Rs 61k cr of idle money with RBI The government is bearing a portion of the cost of liquidity management by paying interest on money it does not need. The central government has been regularly borrowing from the market through bond issues to fund its huge fiscal deficit. The bond issues are timed to meet cash requirements of the government. Instead of spending the money, the government has parked Rs 61,343 crore of idle money in its account with the Reserve Bank of India (RBI). The idle money with RBI rose from Rs 12,837 crore in June 2009 to Rs 80,775 crore by end-September. 2009 a challenging year for U.S. venture capital market The year 2009 has been a very challenging year for venture capital sector in the United States, and analysts are expecting a recovery for the market next year with more investment going to companies doing real business. In the gloomy market, some U.S. venture-backed companies is still successfully in securing big deals.The biggest deal in 2009 belongs to social networking website Face book, which raised 200 million dollars from Russias Digital Sky Technologies.The latest example is Exact Target, a marketing e-mail software provider which recently raised another 75 million dollars, bringing the startups total funding this year alone to 145 million dollars, technology blog Tech Crunch.2010 as a year when the U.S. venture capital market recovers and e-commerce companies do well. Managing inflation expectations smartly The need to manage inflation expectations as proposed by the State Council, the countrys cabinet, suggests that the decision-makers have developed a forward view on the risks of potential inflation, which is a timely and helpful move. To manage inflation expectations, the government should regulate the controllable factors in advance and appropriately guide market views on the trend of these factors, including expectations on domestic monetary policy (especially money supply growth and real interest rate), fiscal policy, the governments intervention in the stock and housing markets, land supply and policies affecting global liquidity conditions. First, the current year-on-year growth rate of M2 surpassed nominal GDP growth rate in the first three quarters by 23 percentage points and credit growth, by 27 percentage points, signaling excessive liquidity. The credibility of monetary policy should be improved. The 17 percent growth rate of M2 declared has been exceeded substantially because of the approval of overfull government-dominated projects and the acceleration in project implementation. In 2010, if government policies are not coordinated effectively and the growth targets for money and credit are once again not adhered to, then monetary policy will lose credibility and inflation expectations may worsen. SEBI eases norms for raising funds from bond market Capitalmarketregulator Securities and Exchange Board of India (SEBI) eased norms for security or the asset cover, required for issuing secured bonds. SEBI said that issuers will have to maintain a 100% asset cover that is sufficient to discharge the principal amount at all times for their debt securities offerings. The charge was created on a portion of assets and the rest was secured by way of negative. SEBI has also enhanced disclosures toinvestorsby issuers. Issuers will also have to deposit 1% of the issue proceeds with the exchange till all the investor complaints are disbursed off. Scope of study This proposed study will help to find the future of money market and capital market. These both are very essential factors for our Indian economy. Research Methodology Research Method is a way of doing something and methodology is a set of methods used in a particular area of activity. The research methodology employed in the research is as given by Philip Kotler. Developing the problems and research objective Developing the information sources. Collecting and analyzing the information Presenting the information Research Design Research Design is a series of advanced decisions that taken together comprise a model for the conduct of an investigation. So research design provides a framework of plan for study, which guides the collection, measurement, analysis, and interpretation of the data. The research carried out here is descriptive in nature. Descriptive research provides data about the population or universe being studied. It can describe 5 Ws, 1H i.e. what, when, why, who, where, and how. Method of Data Collection The next step of research methodology is data collection. It can be done through primary or secondary techniques. In this study secondary techniques is used to collect the data. For secondary data I have referred journals, magazines and Internet. CONCLUSION:- Money market capital markets are a critical component for any developed economy.Today Indian capital markets are amongst the best regulated markets in the regulatory framework with the significant growth in the securities markets. The story of Indian capital market reveals an efficient trading and settlement infrastructure, high levels of disclosure and fostering an environment of innovation. In this back drop it is seen that a new trend of corporate financing is gaining ground. The sale of Foreign Currency Convertible Bonds by domestic companies and banks has surged over the last couple of years. Thus, some articles in this study seeks to examine some fundamental concepts related to Foreign Currency Convertible Bonds, its nature, regulatory mechanism, tax treatment, advantages and disadvantages. it is concluded that Foreign Currency Convertible Bonds can be advantageous only in a booming market and cannot be the buzzword in a bearish market, which the Indian markets did experience a little while back. In a bearish market, listed companies may resort to Qualified Institutional Placements that have been introduced by SEBI guidelines. Indian Stock Markets can be a very rewarding avenue of investment but the constant changes and the inherent dynamic nature of the markets can wipe out our funds or savings within a minute. Dont always rely on the daily list of BSE top gainers or BSE top losers as it only takes a minute to get the things changed here. Keeping ones eyes and ears open can theinsurethe investor against any major losses. Hence, it is a way to turn our savings into a fortune. REFERENCES:- www.capitaline.com www.investopedia.com www.articlesbase.com www.business.mapsofindia.com https://linguistics.byu.edu/faculty/henrichsenl/apa/apa01.html www.sbidfhi.com www.improvingyourworld.com https://www.uri.edu/artsci/newecn/Classes/Art/INT1/Mac/Measure/Cap/Capital1.htm www.businessweek.com Finance India and Journal of Finace.