Such is the history of the rise of finance capital and such is the content of that concept. In such a situation, the banks can not remain far behind speculation.

The extraordinary rise of monopoly makes it possible for the bankers to lay hands on speculation in land situated in the suburbs of rapidly growing big towns as it provides with a very profitable operation for finance capital. The bankers often act from behind the scene through holding system.

The paradoxical, yet historically necessary and natural situation, from the point of view of the bourgeois that arises due to such a development of bank capital is that "a steadily increasing proportion of capital in industry ceases to belong to industrialists who employ it. They obtain the use of it only through the medium of the banks which, in relation to them, represent the owners of the capital. On the other hand, the bank is forced to sink an increasing amount of its fund in industry.

Thus, to an ever greater degree the banker is being transformed into industrial capitalist." And thus is the bank capital, the capital in the money form, transformed into industrial capital. But this industrial capital is not that simple industrial capital as usual, it is Finance Capital i.e. a capital that has its origin in the coalescence of bank and industrial capital which itself took place under the condition of ever-increasing concentration of production that finally led to monopoly.

Now what is this financial oligarchy all about and how does it work? What is its importance in the overall structure of industrial building up so that it plays so important a role in the characterizations of imperialism? What is the impact of unemployment overall on society?

Questions - What is the capital budgeting? Explain the importance of capital budgeting.

Answer – In this competitive arena pro-active organization makes attempts to convert challenges into opportunities. Indian economy is growing at 9%. It has for reaching implications. New lines of business such as retailing, investment advisory services and private banking are emerging. All these involve investment decisions. These investment decisions that corporate take to reap the benefits arising out of the emerging business opportunities are known as capital budgeting decisions.

Capital budgeting decisions involve evaluation of specific investment proposals. Here the word capital refers to the operating assets used in production of goods are rendering of services.

Budgeting involves formulating a plan of the expected cash flows during the future period. When we combine capital with budget we get capital budget.

Capital budget is a blue print of planned investments in operating assets. Therefore, capital budgeting is the process of evaluating the profitability of the projects under consideration and deciding on the proposal to be included in the capital budget for implementation.

Capital budgeting decisions involve investment of current funds in anticipation of cash flows occurring over a series of years in future. All these decisions are strategic because they change the profile of the organizations. Successfully originations have created wealth for their shareholders thought capital budgeting decisions.

Importance of capital budgeting:

Capital budgeting decisions are the most important decisions in corporate financial management. These decisions make or a business organization. These decisions commit a firm to invest its current funds in the operating assets with the hope of employing those most efficiently to generate a series of cash flows in future.

These decisions could be grouped into:

1. Replacement decisions: These decisions may be decision to replace the equipments for maintained of current level of business or decision aiming of cost reductions.

2. Decisions on expenditure for increasing the present operating level or expansion through improved network of distribution.

3. Decisions for products of new goods or rendering of new services.

4. Decisions on penetrating into new geographical area.

5. Decisions to comply with the regulatory structure effecting the operations of the company. Investment in assets to comply with the conditions imposed by environmental protection act comes under this category.

6. Decisions an investment to build township for providing residential accommodation to employees working in a manufacturing plant.

Before starting of financial crisis survey we have to know about cause of the financial crisis. I can say again financial crisis is the market crisis. In the market all the products are in stock. The money in the market is not to purchase the product. You can ask where the money is then? I will again say the money is in the hand of seller. How, I am going to define that.

In the capitalist system financial problem surely come after 2, 3, 4 or 5 years because the system run through the finance by individual. You can say the system is not running personally, I can say. But I can say one more fact that system is not running without the capital money and the owner of capital money are individual.

In the capitalist system how money and product differ from each other and bring financial crisis we will see further. Here I have only goal to survey the financial crisis.

With the capitalist age market comes in the existence. To exchange money comes also in the light but all the money were in the approximate of all the product. It means money = product. But to develop the society there were the needs of capital to develop technology and work area. In this process profit take place and the profit accumulation creates capitalist.

Accumulation of capital became more and more and the result we got gigantic companies in the world. The situations of money accumulation create gigantic companies as well as difference between rich and poor.