Finanacial Markets

Question 1

Role of finacial markets

Answer 1

• People can invest there savings and pensions into assests like company shares or government bonds
• keep money safe and generate a ‘return’ on there savings
  -savings can be recycled for investment by businesses and individuals

Question 2

Financial markets

Answer 2

Facilitate the exchange of goods and services and provide forward markets in currencies commodoties

Question 3

money markets

Answer 3

used by firms and governments to borrow and lend in the short term

Question 4

Capital markets

Answer 4

Governments and firms use capital markets to borrow and lend in the long term

Question 5

Currency markets

Answer 5

Where currencies are traded

Question 6

Commercial banks

Answer 6

Interact with households and businesses