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Management of Financial Institutions

Use of financial plans and budgets

Forecasts, or long range plans are necessary in all the firm's operations.
This forecast of financial requirements is used to draw up the strategic financing plans during the planning period.

In addition to the long range planning, the financial manager must also make accurate short run forecasts to be sure that funds will be available to meet seasonal and other short - run requirements. The financial manager would have calculated the key financial ratios to show both his actual and his projected financial positions for the banker.

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