13. Functions Of The Financial System Flashcards
1
Q
What is the matching concept?
A
When companies try to match the time period of the finance to the life of the assets they finance.
2
Q
What are financial intermediaries?
A
They are institutions such as banks or building societies that channel funds from savers(looking for economic return) to borrowers.
3
Q
What is the gearing ratio?
A
Debt/equity
4
Q
What is a financial intermediary?
A
Institutions such as banks or building societies, which channel funds from savers to borrowers.
