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Slide 1: Finance for Trainers
Slide 2: Objective of the session  Business orientation  Prima facie awareness of Indian economy
Slide 3: Some Commonly Used terms Security,Bond,Stock
Slide 5: Security  Security :A security is a negotiable instrument representing financial value.
Slide 7: Bond  Bond (also known as Debenture): it is a long-term debt instrument used by governments and large companies to obtain funds. It is defined as "any form of borrowing that commits a firm to pay interest and repay capital”.
Slide 8: Share
Slide 9: Commonly Used Terms  Share (also known as stock and equity):means a share of ownership in a corporation (company)
Slide 10: Money market  In finance, the money market is the global financial market for short-term borrowing and lending. It provides short-term liquidity funding for the global financial system.
Slide 11: Capital Market  The Capital Market is the market for securities, where companies and governments can raise long term funds (periods longer than a year). The capital market includes the stock market and the bond market. Financial regulators like SEBI, oversee the capital markets in their countries to ensure that investors are protected against fraud.
Slide 12: Capital Market contd. Consist of  Primary market :The primary market is that part of the capital markets that deals with the issuance of new securities. For e.g. In the case of a new stock issue, this sale is an initial public offering (IPO).  Secondary market: Is the financial market where previously issued securities and financial instruments such as stock, bonds are bought and sold.
Slide 13: Rules and Regulators
Slide 14: Understanding Indian economy   Monetary policy Fiscal policy
Slide 15: Monetary policy   One of the roles of RBI. Monetary policy is the process by which the RBI controls (I) availability of money, and (ii) cost of money or rate of interest, in order to attain a set of objectives oriented towards the growth and stability of the economy
Slide 16: Types of Monetary policy  Expansionary policy: increases the total supply of money in the economy, to combat unemployment in a recession by lowering interest rates. Contractionary policy: involves raising interest rates in order to combat inflation. 
Slide 17: Important terms in monetary policy  CRR: (CASH RESERVE RATIO) RBI or central banks require banks to keep a small portion of their deposits as “banks reserves”, which the banks cannot lend out.
Slide 18: Quiz Time Q.1:What will happen if RBI increases CRR?
Slide 19: Bank Rate/Repo rate  This is the rate at which RBI lends money to other banks (or financial institutions). These loans are usually very short-term loans.
Slide 20: Reverse Repo Rate  The rate at which RBI borrows money from the banks (or banks lend money to the RBI) is termed the reverse repo rate. The RBI uses this tool when it feels there is too much money floating in the banking system.
Slide 21: Quiz:2    What is the CRR Repo rate Reverse repo rate
Slide 22: Ans.     Current Rates Figures (as of Jan 6, 2009) CRR = 5.0% Repo Rate = 5.5% Reverse Repo Rate = 4.0%
Slide 23: Fiscal Policy Fiscal Policy is considered to be acts of a government to influence the direction of nation’s economy by using its financial and regulatory powers.  Financial power: The two main important instruments of fiscal policy are government spending and taxation.  Regulatory powers :The ability of government to influence its people to change their behaviour.
Slide 24: Government Revenue: Government generates revenue by collecting taxes from its people and businesses. By changing tax rates government can influence demand. For e.g.– lowering of income tax rate will increase the disposable income of people. With more money in hand people will spend those money on goods and service; hence, creating a demand for the same. 
Slide 25:    Government Spending: Constructing schools, colleges, hospitals, ports, airports, highways, factories etc. In several welfare schemes such as unemployment benefits, elderly pensions, healthcare benefits.
Slide 26: Quiz:What is infrastructure?   Infrastructure can be defined as the basic physical and organizational structures needed for the operation of a society or enterprise. the services and facilities necessary for an economy to function. E.g. :roads, water supply, sewers, power grids, telecommunications.
Slide 27: Business Planning For Development Projects THE PLAYERS DEBT SOURCE: Lenders EQUITY SOURCE: Owners and Investors FUNDS DEBT SERVICE CAPITAL FUNDS RETURN ON AND OF EQUITY INFRASTRUCTURE & MUNICIPAL SERVICES PUBLIC SECTOR AGENCIES ECONOMIC DEVELOPMENT PROPERTY TAXES & USE FEES THE REAL ESTATE ______ Political / Physical / Economic Opportunities & Constraints SKILLS & SERVICES DEVELOPER ____________ OPERATOR FEES & INCENTIVES OCCUPANCY COSTS USE & ENJOYMENT THE MARKET ______ USERS 27
Slide 28: That’s it!