LS13 - Role of Financial Markets

Question 1

Roles of Financial Markets

Answer 1

1. facilitate saving
2. lending to businesses and individuals
3. allow for transactions
4. provide a means by which g/s can be bought and sold easily
5. reduce risk and provide certainty by enabling commodities and currencies to be traded in futures markets
6. provide a market in which shares and bonds can be traded

Question 2

Types of Financial Markets

Answer 2

Currency, Commodities, Stocks