Global Market

Summary: Global commercialises and Institutions 1. Introduction and Basics 1.1 General Definitions: - fiscal markets: Markets in which silver be transferred from concourse who have a surplus of available m 1y to people who have shortfall of available monetary resource - pecuniary intermediaries: Institutions that sop up finances from people who saved and then make loans to others (e.g. banks, insurance companies, shared funds etc.) - Asset: A financial claim or find fault of property that is a store of place - Security: A claim on the borrower?s upcoming income that is sold by the borrower to the lender (also called financial instrument) - Maturity: tot of years until the extremity date of a debt instrument - Brokers: agents of investors who tote up buyers with sellers of securities - Dealers: people who bond buyers with sellers by buying and selling securities at stated prices - Market liquidity: accessibility of money, the ease and speed of converting assets i nto money 1.

2 Functions of Financial System / Market (4) - channeling funds from person or phone line without investment opportunities (LenderSavers) to one who has them (Borrowers-Spenders) ? improves economic efficiency, ? increasing opportunities for investors, cheap and blowsy borrowing; ? consumer rout out time their purchases better (improvement of well-being) o Lender-savers: households (principal), course firms, political sciences, foreigners o Borrower-spenders: business, government (principal), households, foreigners o Direct pay: Borrowers borrow directly from lenders in financial markets by selling financial i nstruments which are claims on the borrower?! s future income or assets o Indirect finance: Borrowers borrow indirectly from lenders via financial intermediaries (established to bug both loanable funds and loanable opportunities) by issuing financial instruments which are claims on the borrower?s future income or assets - Creating liquidity - Providing a payment utensil - Offering financial services 1.3 social organization of...If you penury to get a full essay, order it on our website: OrderCustomPaper.com

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