Exam (elaborations)
Solution Manual For Financial Reporting And Analysis 5th Edition By Revsine
- Module
- Institution
Solution Manual For Financial Reporting And Analysis 5th Edition By Revsine
[Show more]
Seller
Follow
tutorclara
Reviews received
Content preview
Chapter 01 - Functions and Roles of Financial Institutions and Markets in the Global EconomyChapter 1
Functions and Roles of Financial Institutions and Markets
in the Global Economy
Learning Objectives in This Chapter
You will understand the functions performed and the roles played by the
system of financial institutions and markets in the global economy and in our
daily lives.
You will discover how important financial institutions and markets, including
the whole financial system, are to increasing our standard of living, generating
new jobs, and building our savings to meet tomorrow’s financial needs.
What’s in This Chapter? Key Topics Outline
How the System of Financial Institutions and Markets Interfaces with the
Economy
The Importance of Savings and Investment
The Nature of Financial Claims in the Financial Markets
Functions of Financial Institutions and Markets: Savings, Wealth, Liquidity,
Credit, Payments, Risk Protection, and Pursuing Public Policy
Types of Financial Markets within the Global Financial System
Factors Tying All Financial Markets Together
The Dynamic Financial System: Key Emerging Trends
Chapter Outline
1.1. Introduction to the System of Financial Institutions and Markets
1.2. The Global Economy and the System of Financial Institutions and Markets
1.2.1. Flows within the Global Economic System
1.2.2. The Role of Markets in the Global Economic System
1.2.3. Types of Markets
1.2.4. The Financial Markets and the Financial System: Channel for Savings
and Investment
1.2.4.1. Nature of Savings
1.2.4.2. Nature of Investment
1.3. Economic Functions Performed by the Global System of Financial
Institutions and Markets
1.3.1. Savings Function
1.3.2. Wealth Function
1.3.3. Liquidity Function
1.3.4. Credit Function
1.3.5. Payments Function
1.3.6. Risk Protection Function
1.3.7. Policy Function
1-1
, Chapter 01 - Functions and Roles of Financial Institutions and Markets in the Global Economy
1.4. Types of Financial Markets within the Global Financial System
1.4.1. The Money Market versus the Capital Market
1.4.2. Divisions of the Money and Capital Markets
1.4.3. Open versus Negotiated Markets
1.4.4. Primary versus Secondary Markets
1.4.5. Spot versus Futures, Forward, and Option Markets
1.5. Factors Tying All Financial Markets Together
1.5.1. Credit, the Common Commodity
1.5.2. Speculation and Arbitrage
1.6. The Dynamic Financial System
1.7. The Plan of This Book
Key Terms Appearing in This Chapter
financial system, 3 credit, 9
market, 4 money market, 12
financial market, 6 capital market, 12
savings, 6 open markets, 14
investment, 6 negotiated markets, 14
wealth, 8 primary markets, 14
net worth, 8 secondary markets, 14
financial wealth, 8 speculators, 16
net financial wealth, 8 arbitrage, 16
liquidity, 9
Questions to Help You Study
1. Why is it important for us to understand how the global system of financial
institutions and markets works?
Answer: The global financial system of institutions and markets is an integral part of
the global economic system. It is the collection of markets, institutions, laws,
regulations, and techniques through which bonds, stocks, and other securities are
traded, interest rates are determined, and financial services are produced and delivered
around the world.
2. What are the principal links between the financial system and the economy?
Why is each important to the other?
Answer: The principal link between the financial system and the economy is the
Financial Markets. The financial markets channel savings to those individuals and
institutions needing more funds for spending than are provided by their current
incomes. The financial markets are the heart of global financial system, attracting and
allocating saving and setting interest rates and prices of financial assets (stocks,
bonds, etc.).
1-2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tutorclara. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £12.17. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77333 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now