Strategic Initiative Paper

14-1 What atomic number 18 financial markets? What agencys do they perform? How would the economy be worse off without them? Financial markets atomic number 18 institutions and procedures that facilitate legal proceeding in all types of financial claims. A home purchase, prevalent stock owned, and a life insurance policy purchased are types of financial transactions that takes place in financial markets. The function of financial markets is to facilitate the transfer of savings from those economic units with a surplus to those with a deficit. They exist in order to portion the supply of savings in the economy to the demanders of those savings. The central quality of a financial market is that it acts as the vehicle though which the forces of supply and demand for a specific type of financial claim are brought together. The economy will be worse off without established financial markets because the economy would have little wealth without them. Just imagine if everyone with money to invest ripe hang on to their money for whatever reason. It could be out-of-pocket to a lack of confidence on our elected officials, forgetful economic conditions, and social unrest situations such as the events unfolding in the Middle East. This simply means that the rate of with child(p) generation or formation will decrease or slow down.

No keen investment means no new business opportunities and will have a contradict impact on the economy. 14-3 Distinguish between the money and capital markets. The key distinguishing feature between the money and capital markets is the adulthood periods of securities trade in them Money market refers to all institutions and procedures that ply for transactions in short-term debt instruments generally issued by borrowers with gamey credit ratings. By financial convention, short-term means matureness of one year or less. Equity instrument (common or preferred) are not traded in money markets. Major instruments issued and traded are T-bills, various federal agency securities, bankers... If you want to get a full essay, order it on our website: Orderessay

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