Financial Markets

Question 1

Facilitate saving

Answer 1

provide an opportunity for individuals and firms to save money e.g in bank account or pension fund

Question 2

Lending

Answer 2

to lend money to businesses or individuals who need more cash e.g loans or motgages

Question 3

Exchange

Answer 3

to provide an opportunity for individuals or firms to exchange e.g easy to transfer money to friends or pay for goods and services through app

Question 4

Market for equity

Answer 4

provide a market in which equity can be bought and sold e,g large banks help companies sell shares by finding investors to buy them

Question 5

Forward markets

Answer 5

to provide forward markets - markets in which forward contracts can be drawn up and put in place

Question 6

What is equity?

Answer 6

percentage of company - sold to investors to raise money

Question 7

What are forward contracts?

Answer 7

contracts that guarantee that a trade happens at a later date and at a certain price