financial markets

Question 1

define financial market

Answer 1

a financial market is a place where buyers and sellers can trade services or assets that are monetary in nature.

Question 2

give 5 functions of financial markets

Answer 2

1. facilitates saving- financial assets such as money, stocks n shares. 2.through the provision of credit facilities, financial markets allow households, firms an governments to borrow. 3. facilitates exchange of goods an services- central banks- notes and coins, retail banks- debit and credit. 4.provides a forwards market in commodities and currencies 5.provides a market for equities(stocks).