UPLEARN financial markets

Question 1

what are the 5 roles of the financial markets?

Answer 1

saving
lending
exchange
providing a market for equity
providing forward markets

Question 2

how do you figure out what the total when adding on an interest rate? eg 9700 with 0.45% interest for one year

Answer 2

9700 times 1.0045 = 9743.65

or 9700 times (0.45/100) = 43.65
9700 + 43.65 = 9743.65

10% = 0.1
1% = 0.01
0.1% = 0.001 so 0.45 = 0.0045

Question 3

what is equity?

Answer 3

selling a percentage of their business through shares to investors so they own a bit

large firms like uber give some of their shares to large banks so they can sell them on their behalf

Question 4

what is a forward contract?

Answer 4

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

Question 5

what are the two key features of a forward contract?

Answer 5

fixed price
fixed future date