Role of financial markets 4.4.1 Flashcards
1
Q
financial markets
A
where buyers & sellers can buy/trade services & assets
2
Q
why do financial markets exist
A
meet demand for services
allow speculation and financial gains
3
Q
types of financial institutions
A
retail banks: services to households loans etc
commercial banks: services to businesses
savings vehicles: pension schemes, hedge funds
4
Q
role of financial market
A
facilitate savings
lending to businesses and individuals (financial intermediary) step between taking money from one person to give to another
facilitates exchange of goods & services
provide forward markets (buying & selling at a set price in the future)
market for equities (finance expansion)
