4.5.2 the role of the financial sector

Question 1

What are 3 examples of financial markets?

Answer 1

• The stock market
• The bond market
• The currency market

Question 2

What are exchanged in a financial market?

Answer 2

Financial liquid assets.

Question 3

What do financial markets do? [5]

Answer 3

• Facilitate saving
• Lend to businesses and individuals
• Facilitate exchange of goods and services
• Provide forward markets in currencies and commodities
• Provide a market for equities

Question 4

What are stock markets also called?

Answer 4

Equity markets, and they provide access to capital for firms, and allow investors to own part of a market.