Week 1 - Main participants in financial markets

Question 1

name the 3 main players in Non-financial sectors

Answer 1

1. Firms (net borrowers)
   
   • Raise capital now to pay for investments
   2. Households (net savers)
      - Purchase securities issued by firms
   3. Governments (can be both borrowers and savers)
      Depends on the relationship between tax revenue and government expenditures

Question 2

what is a financial intermediary?

Answer 2

the people or institutions that facilitate transactions

Question 3

give 7 examples of financial intermediaries

Answer 3

banks
investment banks
financial advisors or brokers
investment funds
stock exchanges
credit unions
insurance companies.