Saturday, January 16, 2010

NEPAL POOR FINANCE

Nepal is amagricultureong the poor and the least developed countries in the world. It has nearly half of its population living below the poverty line.Agriculture is the most important in the economy, providing a livelihood for over 80% of total population. Industrial activity mainly involves the processing of agricultural.Nepal is landlocked geographic location, and its susceptibility to natural disaster.
The government has been moving forward with economic reforms, particularly tindustryhose that encourage trade and foreign investment by reducing business licenses and registration requirements . The government has also been reducing subsidies, privatizing state industries, and laying off civil servants to cut expenditures. However, recently political instability has hampered governments' ability to forge consensus to implement important economic reforms such as jute, sugarcane, tobbaco, grain e.t.c

IMPORTANT OF FINANCE IN ECONOMY


Finance is merely the practical application of economics. The Financial System is the means by which an economy allocates money to its highest valued use. Finance is businesses, and governments raise the cash needed to do business. The goal of any financial system is to make sure that those with good ideas get the money necessary to implement the ideas.
In a market-based economy, investors invest in a firm and the firm takes the investment and uses it to implement the business ideas. People do not give money without the expectation of getting something in return. Incase if money is given, something is expected back in return. In this case more money. In competition for more money, firms will strive to find better investments. This leads to economic growth, more jobs, and hopefully a higher standard of living.

INDIVIDUAL FINANCE

Just like a company, we all need money. We need money to live for food, clothing, shelter and we probably want money for a great number of things like concert tickets, cars, computers, etc. Thus we need to get money. Finance helps us to have the money when we need it and even when we want it. We need to efficiently manage our resources and know what risks are worth taking. Further we need to know how to invest and how to raise money.
Even if you never plan on owning your own business, Finance is still important to you. Finance teaches us to understand the other side of every transaction. If you understand what your employer wants, it is easier to achieve this and hence you are in a better position for raises and promotions.

Friday, January 15, 2010

FINANCE MINISTER OF NEPAL

A minister of finance (also called financial affairs, the treasury, the economy, or economic affairs) has many different jobs in a government. He or she helps form the government budget, stimulate the economy, and control finances. Finance ministers are often found in state or provincial governments if that country has a form of federalism.The powers of a finance minister vary between governments. Sometimes the finance minister is the most powerful cabinet post, like in Canada or New Zea land. Other times they are unpopular posts if they must raise taxes or cut spending.

In the United States, the finance minister is called the Secretary of the Treasury, though there is a separate Treasurer of the United States, and it is the director of the Office of Management and Budget who drafts the budget. In the United Kingdom, the finance minister is called the Chancellor of the Exchequer. In HongKong it is called the Financial Secretary, though there is a Secretary for the Treasury subordinate to him. In Australia, the Treasurer is responsible for economic matters and is assisted by the Minister for Finance and Deregulation (formerly Finance and Administration) who heads a separate department.

Wednesday, January 13, 2010

FINANCIAL ANALYSIS


Financial analysis is the process of identifying the financial strengths and weakness of firms by proprly establishing relationship between the items of balance sheet and profit and loss account. Financial analysis can be undertaken by managment of firms or by parties outside the firms or by parties outside the firms , owner, creditors, investor and others. The financial analysis helps to know the liquidity of organization.The liquidity of organizationis known by seeing the profitability.
The investors who have invested their amount in the firms share are most concerned with the earning of firms.They are also intrested infinancial position to extent it influencesthe firms earning ability.through financial analysis they try to find out position of organization,efficiency of assects , investors position e.t.c.

IMPORANCE OF INSURANCE IN FINANCE MARKET

Generally finance means managment of money. In the big organization having financial capital huge, the huge capital may be in risks. Insurance can be defined as cooperative device to spread the loss caused by a particular risk over a number of person who are exposed to it and who agree insure themselves against that risks. This risks ,loss,damage,and incidents may be created incidentally with the cause of nature ,divine and human activities, due to this reason human being may suffer financial crisis. Against such risks a human have devised insurance as a finincial security.

The insurance is the principle against the risk which means the financial loss. The uncertanity of loss is called risk. The insurance business is multidimension business because it gives benefit directly or indirectly to the organ of society. So far the financial lossis recovered by insurance. there are different kinds of insurance such as life insurance,marine insurance,fire insurance e.t.c.

Tuesday, January 12, 2010

NATIONAL INCOME

National income refers to the total value of goods and services produced in the economy over a certain period of time.When the value of goods and services are measured in monetary value then we get national income. The total goods an dservices are known as national product.The national income is measured ina a year.While calculating the national income the value of goods and services are measured in same monetary value of unit. The national income can be expressed in the form of wage,intrest,profit and rent because goods and services are produced bylabour,capital,enterpreneurand land. If these factors of production are increased then the national income is also incresaed. National income is infiuenced by internal and external forces. Internal forces means those factors available in the country.External forces are related to international trede.