External Debt of Pakistan

There are few important terms regarding funds, it is very important to understand the differences from each other of these terms. These are defined very briefly and simply for a better understanding of the readers.

THE FUND MANAGEMENT

Fund management can be simply defined as it is the management of the cash flow of financial institutions. The manager is supposed to ensure the balance between the demand and supply of the funds of the institutions. The fund manager is supposed to evaluate the liabilities and assets and determine the limit for issuance of the loans.

THE FUNDING MANAGEMENT

Fund management can be simply defined as it’s the management of the Cash flow of the financial institution.

THE FUND MANAGER

The role of the funding manager can be simply described as, the person who is managing the funds is known as the fund manager, the core responsibility of the fund manager is to manage the receipts and payments of the banks. By evaluating the receipts and demands for payment he decides the level of issuing credit to new customers.  

TYPES OF FUNDS

The sources of funds can also be termed as the types of funds. The funds can be divided into four main types which are the equity of any firm, seconds is bonds or fixed income, third is short term and long term debt from external sources (Money market funds) and last one is both stocks, loans, and bonds it is also known the hybrid funds.

DIFFERENCE BETWEEN FUND AND FUNDING

The fund can be defined as the Money and the funding can be defined as the money comes from where? or simply we say that the source of money is funding. For Example, the manager has funded the working capital by getting funding from retaining the earnings of the organization.  

FUNDING MANAGEMENT OF MULTINATIONAL CORPORATIONS

The funding management of Multinational Corporations (MNCs) is managed by the top management of the Multinational corporations (MNCs). It is the most complicated and expert financial management skill to manage the funds. The major money is involved in these decisions. So, similarly, the value of financial risk is also high.   The managers are required to decide which source of funding should be selected for meeting the funding requirement of the Multinational corporations (MNCs). Or to make a hybrid funding source, they also require to decide that how much volume of funding should be decided from each source of funding. This is the main reason the board of directors of any Multinational Corporations (MNCs) is very careful in selecting the Chief Financial Officer (CFO) for their organizations. Because their decisions matter a lot for increasing or decreasing the wealth of the stockholders.

INTERNATIONAL FINANCIAL MANAGEMENT 

International Financial Management can be simply defined as, the financial management of international businesses. It is not similar to the local financial management because the financial management is not involved with different currencies and their expected fluctuations, future predictions by keeping in view the political and social situations of the respective countries.