Indian Money Market - 1061 Words

Indian money market The India money market is a monetary system that involves the lending and borrowing of short-term funds. India money market has seen exponential growth just after the globalization initiative in 1992. It has been observed that financial institutions do employ money market instruments for financing short-term monetary requirements of various sectors such as agriculture, finance and manufacturing. The performance of the India money market has been outstanding in the past 20 years. Money market refers to the market where money and highly liquid marketable securities are bought and sold having a maturity period of one or less than one year. It is not a place like the stock market but an activity conducted by telephone.†¦show more content†¦7. Limited Instruments: It is in fact a defect of the Indian money market. In our money market the supply of various instruments such as the Treasury Bills, Commercial Bills, Certificate of Deposits, Commercial Papers, etc. is very limited. In order to meet the varied requirements of borrowers and lenders, It is necessary to develop numerous instruments. Challenges faced by Indian money market Though the Indian money market is considered as the advanced money market among developing countries, it still suffers from many drawbacks or challenges. These defects limit the efficiency of our market. Some of the important challenges of Indian Money Market are:- 1. Absence of Integration: The Indian money market is broadly divided into the Organized and Unorganized Sectors. The former comprises the legal financial institutions backed by the RBI. The unorganized statement of it includes various institutions such as indigenous bankers, village money lenders, traders, etc. There is lack of proper integration between these two segments. 2. Multiple rate of interest: In the Indian money market, especially the banks, there exists too many rates of interests. These rates vary for lending, borrowing, government activities, etc. Many rates of interests create confusion among the investors. 3. Insufficient Funds or Resources: The Indian economy with its seasonal structure faces frequent shortage of financial recourse. Lower income, lower savings, andShow MoreRelatedIndian Money Market It’s Trend Analysis14634 Words   |  59 Pageson â€Å"Indian Money Market It’s Trend Analysis† Acknowledgement †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.3 Abstract ..................................†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.4 Objective †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.5 Methodology†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦6 Understanding Money Market†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.7 Money Market Instruments Government securities.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.8 Liquidity Adjustment Facility†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11 T-Bills †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 Government Dated Securities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦21 Call and Notice Money Market†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦23Read MoreEssay On Money Market1230 Words   |  5 PagesEmerging Economies Selected: India and China Money Market 1. India It is a market where short-term funds with maturity ranging from overnight to one year in India which are close substitutes of money even the financial instruments. It had diversified from conventional platform of treasury bills and call money to commercial paper, certificates of deposit, repos, forward rate agreements and most recently interest rate swaps. â€Å"The money market fulfils the borrowing and investment requirements of providersRead MoreChallenges of Money Market Mkt in India3035 Words   |  13 PagesIntroduction The India money market is a monetary system that involves the lending and borrowing of short-term funds. India money market has seen exponential growth just after the globalization initiative in 1991. It has been observed that financial institutions do employ money market instruments for financing short-term monetary requirements of various sectors such as agriculture, finance and manufacturing. The performance of the India money market has been outstanding in the past 20 years. TheRead MoreCall Money Market in India2283 Words   |  10 PagesA Financial Market can be defined as the market in which financial assets are created or transferred. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments represents a claim to the payment of a sum of money sometime in the future and /or periodic payment in the form of interest or dividend. The primary function of a financial market is to facilitateRead MoreChanges in Indain Financial System Since 19914892 Words   |  20 Pages2011 CHANGES IN INDIAN FINANCIAL SYSTEM SINCE 1991 SUPPLEMENTARY PROJECT REPORT IFS IILM INSTITITE OF HIGHER EDUCATION LODHI ROAD HARJAS MANRAL PG20101087 INTRODUCTION As the economy grows and becomes more sophisticated, the banking sector has to develop parallely in a manner that it supports and stimulates such growth. With increasing global integration, the Indian banking system and financial system has as a whole had to be strengthened so as to be able to compete. India has had around twoRead MoreAn Overview of Indian Financial System2119 Words   |  9 PagesAn Overview of Indian Financial System Financial System of any country consists of financial markets, financial intermediation and financial instruments or financial products. This paper discusses the meaning of finance and Indian Financial System and focus on the financial markets, financial intermediaries and financial instruments. The brief review on various money market instruments are also covered in this study. The term finance in our simple understanding it is perceived as equivalentRead MoreInternational Impact Of The Lehman Brothers Bankruptcy1856 Words   |  8 Pagesdepression, capital shortages, and even the horrendous world wars. However, the one event that brought the firm to the ground - causing it to file for bankruptcy – was the collapse of the US housing market (Case Study). The collapse of the Lehman Brothers sent shockwaves in the US stock and global stock markets as well. During this period, investors across the world expected the US Government to intervene in order to stop the firm from collapsing, just like how that had intervened previously in the caseRead MoreImpact of Financial Regulations3015 Words   |  12 Pagessocially-optimal levels of capital, synchronized with government development planes, and to provide finance for government budget deficits through domestic financial markets (Alam,1989;Amsden,1989; Bradford,1986,1987;Cho and Kin 1991; johnson,1985; and Lee,1992).The financial regulations were designed and implemented to restrain market forces in the allocation of resources , to encourage economic growth ,ensure financial stability and achieve other national goals. Researchers (Romer, 1986; Eckaus,Read MoreAncillary Services12738 Words   |  51 PagesFacility and Access to Safe Deposit Lockers / Return of Safe Custody Articles by banks B. Remittance facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals C. Interest Rates on Rupee Deposits held in Domestic, Ordinary Non-Resident (NRO) and NonResident (External) (NRE) Accounts D. Forex Facilities for Residents (Individuals) E. Electronic Money The required information is largely sourced from the public domain of Reserve Bank of India websitewww.rbi.org.in BackgroundRead MoreManagement Control System of a Bank2118 Words   |  9 Pagesbusiness environment that could significantly affect the attainment of management goals. The top management should analyze the reasons for significant changes in the variables on a continuous basis. Some examples of variables include profitability, market position, productivity and employee attitude. Now, a key variable is a broader term in terms of the indicators of any significant business activity. Any change in its value is expected to have an impact on the performance of the organization. It

Nutrition study worksheet Free Essays

The topic I chose was eggs. The article (Marcela, 2011)feels organic eggs don’t cause heart disease. The hens are feed vegetables and no vaccines or hormones that have made the eggs unhealthy. We will write a custom essay sample on Nutrition study worksheet or any similar topic only for you Order Now For Example: The hens are able to run free without being in a tight space with the other hens. Another example: Claims are made when you cook eggs the protein in the egg helps to lower your blood pressure instead of raising it. Organic eggs are one of the best foods a person can eat to stay lately (Marcela, 2011). 2. What health claims are stated in the articles, such as drinking coffee every day will lower one’s risk for cancer? The health claims in article is Organic eggs are suppose to have less cholesterol, h less saturated fat 2/3 more vitamin A,E and seven times more carotene (Marcela, 2011). They are a good source of nutrients. The other article say eaten eggs will not extended your life on earth it will decrease it (Greer, 2011). 3. Do any of the articles’ claims seem too good to be true? Does it seem that the authors are seeking personal gain in any way? Explain your answers. The article that seems too good to be true is the article on another reason to ignore warnings about eggs. I believe this person who wrote the article eats eggs and don’t want to really believe the risk involved with eating eggs at all. I also believe the person who wrote the article may benefit from stating these claims. The article I feel seem to be true is (Greer, 2011)article on bad eggs. I do also believe the person who wrote this article is a vegan who doesn’t like any type of eggs or dairy products and is against hens living together in such a small place. I also believe he may feel they all come from the same place. I feel it may be true because I do believe your cholesterol levels will go up high no matter what eggs you eat. I believe eggs could have salmonella poisoning in it and kill a lot of people as well as have people develop diabetes from eating eggs everyday. I don’t believe they are a good source of proteins at all. . What are the respective sources of these articles (testimonials, peer-reviewed study)? Studies was done and 77% of women and 58% men eating one egg a day increase their chances of developing type 2 diabetes including premature death and earth failure (Greer, 2011) Studies also show eggs has nothing to do with raising a person’s cholesterol levels even thou egg yolks will raise your cholesterol levels. They are also a ri ch source of antioxidants which helps to prevent blindness (Marcela, 2011). 5. 6. Is the information presented in each article new or has it been studied extensively over time, achieving the same results? Both articles have been studied overtime achieving the same results this moment but both have different opinions on eggs. Department of agriculture there was a 2009 study done on eggs and how they are a DOD source of vocative peptides. In 2005 research showed how people eating eggs everyday did not increase their risk of having a heart attack and their cholesterol level did not increase. . Now that you have gone through the details of each article, do you have any reservations about the information in either one? If so, explain why. Has the process of analyzing the two articles changed your opinion on the topic? Explain your answer. Yes after analyzing the articles my opinion on eggs is very different. I use to think eggs were good for you. I am now convinced no eggs are good for you at all to eat. Your chances of living longer on earth can be shortened. I believe I was blinded by the commercials all my life on how eggs are nutritious for you but if you look at it they always say fresh eggs not healthy on commercials. How to cite Nutrition study worksheet, Papers

Old Goriot Honore de Balzac free essay sample

This aim has, on the whole, been consistently pursued in both divisions of French fiction, the idealistic and the realistic novels. Works of these two types appear, judging from their names, to move in different planes. But the connection of both kinds with life has been fairly close, and, in the seventeenth century, discussion of popular romances was so much the preoccupation of social circles such as the Hotel de Rambouillet, that not only did the novelist try to portray characters he saw, but the leisure classes often sought to model their life after the pattern of the fiction they read. At the threshold of the seventeenth century we come upon one of the most important novels ever written in France because of its influence, even if to-day unread except by specialists, the great pastoral romance â€Å"Astree. † Though the scenes of the story take place in a world impossible and unreal by its anachronisms, and though the characters are as untrue as can be to the civilization of the Gaul in which they are supposed to live, nevertheless the author, Honore d’Urfe, would have us see in his creations human beings, perhaps in some cases to be identified by a key. Their language, highflown and sentimental though it be, fulfills the author’s desire to analyze feelings. So the shepherds and the shepherdesses, the knights and the nymphs of the story, discuss love in all its actions and reactions, and try to define the various kinds of love, faithful, fickle, or Platonic. â€Å"My shepherdesses are not needy ones who have to earn a living,† D’Urfe admitted. But he supposed, at least, that their sentimental experiences were those of human beings. The same purpose may safely be attributed to the successors of D’Urfe down to the middle of the seventeenth century and to the novels of Mlle. e Scudery. In their stories of fantastic experience and of Romanesque incident, or of romantic adventure in distant lands, the authors would have us believe in the verisimilitude, if not in the truth of the characters they describe. So the novels of Mlle. de Scudery, though they are supposed to take place in the days of the great Cyrus or of early Rome, are nevertheless intended to be read in the light of history contemporaneous with the author. If this statement be true of the professionally idealistic romance, it is the more so of the realistic novel. The â€Å"Roman bourgeois† of Furetiere and the â€Å"Roman comique† of Scarron are most useful documents for the knowledge of life in the seventeenth century and the character of individual people. We come to the same conclusion about Madame de la Fayette’s â€Å"Princesse de Cleves,† which, as a reaction against the long romance of fantasy and chivalry, has been called the â€Å"first modern French novel. † Certainly no better example of the literary spirit of its period could be found. Brief and to the point in its descriptions, it is the psychological analysis of a woman’s heart written by a woman, and is no less truthful than the great tragedies of Racine. The eighteenth century was, on the whole, very matter of fact. It was an age of rationalism and of science. Consequently its novels have much the same quality. A satirical writer like Voltaire permits himself whimsical unrealities in his stories, but most writers pose as truthful chroniclers. Lesage’s picaresque novel â€Å"Gil Blas,† Marivaux’s â€Å"Marianne,† and the Abbe Prevost’s â€Å"Manon Lescaut† seek to impart the effect of reality. Even Rousseau’s emotional â€Å"Julie† would fain be a painstaking and accurate picture of human nature. Rousseau is looked upon as the source of the romantic school which, after his death, occupied so important a place in the literary history of the earlier nineteenth century. This school consciously reacted against what it considered the cut-and-dried rationalism of the hitherto reigning literature, and advocated the cult of feeling and a return to nature. This nature included the outer world of mountains and rivers, and intellectual descendants of Rousseau such as Bernardin de Saint-Pierre, author of â€Å"Paul and Virginia,† and Chateaubriand run riot amid the flora and fauna of exotic landscapes. But, strange as it sometimes seems now, the romanticists thought themselves better portrayers of human nature than their opponents had been. It is true that to us the fiction of the romantic age is apt to appear a chaos of imaginative weavings. But if we eliminate the vagaries of which has been called the â€Å"lower romanticism,† with its fantastic and melodramatic incidents often foreign in origin, if we omit also the exuberance of Dumas, we find that the French romantic novelist was usually intent on portraying human nature, just as the classicist before him. We are prone to call the heroes of romanticism a motley herd of eccentrics. The romanticist said that life consists of varied experiences, that souls are multiform, and that the drab monotony of classicism portrays only commonplaces which do not make up the whole of life. In such a novel as Victor Hugo’s â€Å"Notre Dame† we have a characteristic example of romantic fiction. Here the author has sought to reconstruct the Paris of the late Middle Ages, though modern scientific objective historians may say he has not succeeded; he has tried to people this city of his imaginative reconstruction with varied characters, each one intended to show more individuality and more vigor than the anaemic kings and heroes of late neo-classic tragedy. Something new and different was always the aim, because life and character are protean. But so it also comes about that this novel, engrossing as it may be to the reader, seems a gallery of curiosities more than a collection of human beings. Victor Hugo would not have understood that his novels might, after his time, derive their chief interest less from this portrayal of character than from their incidents, and particularly from their tearful emotionalism and the vague humanitarianism which is in the spirit of modern democracy. Of George Sand we are less justified in saying that she tries to copy life exactly. The object of art, she says in the first chapter of â€Å"La Mare au Diable,† is to make us love the objects of its interest and it need not be blamed if it occasionally flatters. Art is not a study of positive reality; it is a quest for ideal truth, and the Vicar of Wakefield was a more useful and a healthier book than the Paysan perverti and the Liaisons dangereuses. † In some of her novels she tries to reconstruct social Utopias and indulges in a semirhapsodic mysticism, in others like the â€Å"Marquis de Villemer† she at least means to portray life. But in stories like â€Å"La Mare au Di able† and â€Å"La Petite Fadette† she frankly idealizes the existence of the peasants in her native Berry and composes pretty prose pastorals with an individuality of charm that we do not find elsewhere. The effect of a novel by Balzac is totally different from that of one by Hugo. Yet Balzac, the realist, like Hugo, the romanticist, is trying to portray human nature. But though Balzac had passed through a brief romantic discipleship in youth, his great literary production belongs to a very different school. Instead of seeking exceptional heroes, apt therefore to appear morbid eccentrics, instead of making these characters vehicles for the author’s moralizings and his views on civilization, Balzac aimed at the close and painstaking study of the men and women of his time. His plan of composition illustrates his careful method. No longer handling his pen, as Hugo did, like a broad brush, Balzac corrected and recorrected his work in proof until the original text was unrecognizable in its final form. Balzac’s men and women are, in their way, as individual as any character of romanticism. Nobody is likely to forget old man Goriot, or the miser Grandet, or to confuse them with other characters in fiction. But Balzac, if we neglect the epic sweep of his constructive imagination in devising and harmonizing the multitudinous characters of his â€Å"Comedie humaine,† helped to initiate the new realistic school which succeeded romanticism. This was the method of the photograph or of the daguerreotype, the close reproduction of details of life and manners. Consequently, the novels of Balzac are most valuable documents for the study of the period they chiefly describe, the reign of Louis Philippe, when the moneyed bourgeoisie or middle-class was in control, and when material interests were much more prevalent than one would infer from reading the romanticists alone. Balzac’s stories are apt to deal with the selfish and sordid side of life, but that results rather from the social conditions of the time or from the bias of his mind than from the inherent demands of his method. The perfection of realism is to be found in Gustave Flaubert, in a such a book as â€Å"Madame Bovary. † There the accurate portrayal is faithfully carried out, and the men and women of the Norman province whom he seeks to describe are not only photographic in their exactness but live by the touch of genius. Realism might appear in theory the perfect literary method in fiction, if verisimilitude be accepted as the author’s goal. Yet the personal bias of the writer may, no less than in romanticism, make the novel deviate from the truth of life through the cult of the exceptional. Much of the moral disapprobation which has been expressed for the modern French novel during the past generation is based on dislike for the â€Å"naturalism† of authors like the Goncourt brothers and Emile Zola. The naturalists delighted in description of vice and disease, the dramshop, the hospital and the brothel. That such a literary treatment of life does not necessarily belong to realism can be seen in the works of Alphonse Daudet and in some of those of Guy de Maupassant. Both of them wrote novels, but some of the best work of both, certainly of Maupassant, was done in the short story, or nouvelle. Alphonse Daudet has often been called the â€Å"French Dickens,† and his realism has much that is akin to that of the English writer. His characters stand out as individualities to be remembered, they have their little peculiarities and idiosyncrasies, and his narrative is interwoven with constant sentimental and pathetic incidents to touch the reader’s feelings. Moreover, as in â€Å"Le Petit Chose,† like Dickens in â€Å"David Copperfield,† he writes from the full memory of his own youthful hardships. In his short stories he has composed little masterpieces of grace and tenderness, as well as often of brisk wit and good-humored satire. Guy de Maupassant was the literary disciple of Flaubert, consequently a more objective realist than Daudet. Some of his writings unfortunately astound by the crudeness and brutality of the narrative and descriptions, but yet when he wishes, no author in French literature portrays more faithfully and more unerringly. Thus it may be inferred that the great masters of French literature have generally aimed to copy life. This does not imply that the fanciful and the whimsical have been banished—Alfred de Musset’s â€Å"White Blackbird† is a proof of the contrary. But the romantic tendency, however popular, has been less genuinely French in its sources and influence, and the various complicated schools of art for art’s sake have almost always had a transient rather than a permanent effect. But the great writers of realism have been masters in creating children of the brain whose actions and characters we may discuss almost with the vivid interest we feel for men and women of history. C. H. C. W.   was born at Tours on May 20, 1799. His father, Bernard Francois Balssa, who adopted the form of the family name made familiar by the novelist, came of peasant stock from the south of France. Honore went to school at Vendome, Tours, and Paris, later proceeding to study law, and spending three years in a solicitor’s office. But when his father wished him to devote himself definitely to the practice of law he revolted, and at the age of twenty-one took up with determination the profession of letters. For five years he lived in very straitened circumstances, producing unsuccessful dramas and a large number of equally unsuccessful novels, chiefly after the pattern of the English â€Å"School of Terror. † The prospect of making a living by his pen remaining dark, he went into business in 1825 as a publisher, printer, and type-founder; but all he seems to have gained from this enterprise was a large debt, which burdened him ever after, some experience of life, and a knowledge of the details of business, of which he availed himself in his later writings.

Reimbursement Methodologies free essay sample

The Blue Cross plan has been evolving since 1929 and the Blue Shield since 1939. 3. Explain why the lack of universal health care coverage can raise health care costs. Many studies have show that people without health insurance do not get the health care they need. The sicker they become, the more tests, surgeries, and other health care services they need. This scenario increases costs to the health care industry. If public health is improved, then the population becomes healthier and health care costs should decrease. A good initiative to move toward a healthy population is the Healthy People 2010 program. 1. You work in the hospital’s health information management department. Part of your job is to assist the medical residents with completing records documentation. One of the residents complains that he doesn’t understand why insurance companies need so much documentation and the reimbursement system is so complex. How do you respond. In order to serve the patient and help to provide quality care, it is important to have a complete and accurate medical record. We will write a custom essay sample on Reimbursement Methodologies or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Keeping records complete and accurate will help in figuring out reimbursement costs and discovering what costs are covered. It is also very important to keep track of all services and supplies so that the hospital can be reimbursed. 2. Mary was receiving Medicaid in Texas. When she moves to California, can Mary assume that she’ll receive the same coverage there? Medicaid policies on eligibility services and payments are complex and very considerably from state to state. Thus, Mary may not be eligible in California even though she was in Texas. 3. Compare point-of-service (POS) plans with health maintenance organization(HMO) plans. In an HMO plan, the insured must choose a primary care physician and then must obtain a referral to seek care from a specialty physician. In a POS plan the insured chooses a primary care physician but still has the option of receiving care from other physicians without the need for a referral. POS combines the features with thos of the PPO. 4. You’re an inpatient coder in a hospital. You’ve just coded a Medicare Part A record with a diagnosis-related group (DRG) reimbursement of $12,000. You notice in the hospital’s computer billing system that the patient’s charges are $19,500. That’s $7,500 more than the hospital will be reimbursed. How does the difference between the charges and the DRG reimbursement become resolved? In some cases, the DRG payment received by the hospital may be lower than the actual cost of providing Medicare Part A inpatient services. In these cases, the hospital must absorb the loss. 5. You work in a physician’s office performing billing. You notice that guidelines haven’t been followed accurately in completing the claim form. What will happen if you don’t correct the claim form? It is important to follow payer guidelines when completing a claim form; otherwise, reimbursement will be delayed until the form is corrected. 6. Why did the Centers for Medicare and Medicaid Services (CMS) implement the National Correct Coding Initiative in 1996? CMS implemented the National Correct Coding Initiative (NCCI) in 1996 to develop correct coding methodologies to improve the appropriate payment of Medicare Part B claims. 7. List some of the risk areas that can be identified through the auditing process. Some of the risk areas found through the auditing process are, DRG coding accuracy, variations in case mix, discharge status (transfers versus discharges), services provided under arrangement, medical necessity, evaluation and management services, charge master description and three day payment window are a few. . You’re an HMO director. You would like to ensure that your managed care plan is meeting industry standards. What’s one way that you can do this? One way to ensure a managed care plan is meeting industry standards is to involve HEDIS (Health Plan Employer Data and Information Set) through the National Committee for Quality Assurance. 9. You work for a third-party payer performing medical records review. Your j ob is to match codes that were submitted on the claim to documentation in the medical record.