Elective Essentials of Finance
Essentials of Finance notes
8 chapter notes, in syllabus order. Each starts with the key points.
Unit 1
Finance: Definitions, Scope, Goals & FunctionsUnit 1 of Essentials of Finance defines finance as a discipline, explains its scope (personal, corporate, public), core goals (profitability, liquidity, efficiency), and key functions (investment, financing, dividend decisions). It contrasts finance with accounting and economics, and illustrates real-world applications8 min readUnit 2
Financial System & Markets: Types, Functions & RolesUnit 2 of Essentials of Finance explains the structure of financial systems (money, capital, foreign exchange markets), their key players (banks, NEPSE, NIBL), how markets function (auction vs. dealer), and Nepal’s regulatory framework (NIBOR, SEBON, Rastra Bank). Includes real-world examples from eSewa, Ncell, and Dar13 min readUnit 3
Financial Institutions in Nepal: Types, Roles & Case StudiesUnit 3 of Essentials of Finance explores Nepal’s financial institutions—banks, NBFIs, insurance companies, and capital market intermediaries—how they operate, their regulatory framework, and real-world applications in Nepal’s economy (e.g., Ncell’s mobile banking, NEPSE’s stock trading). Includes comparative analysis, 20 min readUnit 4
Time Value of Money: Concepts, Calculations & ApplicationsUnit 4 of Essentials of Finance explores why money today is worth more than tomorrow, how to calculate future and present values, and how interest rates and compounding affect financial decisions—with real-world examples from Nepali businesses and global tech.8 min readUnit 5
Interest Rates: Types, Determinants, and ApplicationsUnit 5 of Essentials of Finance explores the core concepts of interest rates—how they are determined, their types (nominal, real, effective), and their role in financial decisions, with real-world examples from Nepali banks, NEPSE, and eSewa loans.16 min readUnit 6
Risk and Return · note coming
Unit 7
Bond Valuation: Pricing, Yields, and Risk AnalysisUnit 7 of Essentials of Finance explains how to value bonds using present value techniques, calculate yields (current, yield-to-maturity), and analyze bond risk (interest rate, default, reinvestment). Includes real-world examples from NEPSE-listed companies and Nepali financial instruments.14 min readUnit 8
Valuation of Stocks · note coming
Unit 9
Financial Statements: Types, Analysis & PreparationUnit 9 of Essentials of Finance covers the four core financial statements (Income Statement, Balance Sheet, Cash Flow Statement, Statement of Changes in Equity), their purpose, structure, and interrelationships, along with ratios, limitations, and real-world applications in Nepali businesses like banks, retail shops, a19 min readUnit 10
Personal Finance: Budgeting, Saving, Investing & Risk ManagementUnit 10 of Essentials of Finance covers the core principles of personal finance—budgeting techniques, saving strategies, investment options (fixed deposits, mutual funds, stocks), insurance types (life, health, property), retirement planning, and tax optimization—with Nepali examples like NMB Bank’s fixed deposits, NEP14 min read