Th4.4: Role of Financial Markets Flashcards
1
Q
What are financial markets?
A
where buyers and sellers can buy and trade a range of services or assets that are fundamentally monetary in nature
2
Q
What are the two main reasons financial markets exist for?
A
to meet the demand for services e.g saving and borrowing
to allow speculation and financial gains
3
Q
What are the three types of financial markets?
A
money market
capital market
insurance market
4
Q
What does the money market do?
A
provides short term saving and lending
5
Q
What does the capital market do?
A
provides longer term financing
