Financial system Exam 1(Accurately solved answered)

purpose of the financial system correct answers channel funds from savers to investors consists of those institutions in the economy that matches one persons saving with another persons investment *consists of financial markets and financial intermediaries financial market correct answers i...

Finance correct answers The study of money, how it is made, how it is spent and how it is managed. Money correct answers Anything a society uses to purchase products, services, or resources. -Anything generally accepted in exchange for goods and services. Functions of Money correct answers -...

Double Coincidence of Wants correct answers 2 traders are willing to exchange their products directly (Barter to Money) Money correct answers Anything that is generally accepted in exchange for goods & services Money Function correct answers The three things that make it important: 1. A mediu...

Financial Asset correct answers A claim on future income (cash flows) generated by a real asset Real Asset correct answers An asset used to produce goods and services and thereby generate cash flow ex: factories, equipment Examples of Financial Asset correct answers Stocks, bonds, commercial p...

set of markets and institutions that facilitate the flow of excess funds from savers to borrowers correct answers financial system Six Parts of the Financial System correct answers 1) Money & payment systems 2) Financial instruments 3) Financial markets 4) Financial institutions 5) Government...

What the roles of the financial system? correct answers -To facilitate the flow of funds -To provide the mechanism to settle transactions -To generate and disseminate information -To provide the means to transfer and manage risk -To provide ways of dealing with incentive problems What does th...

The financial system is the process by which: correct answers funds are transferred from savers to borrowers. The majority of money in the financial system passes through financial _____. correct answers institutions and markets Net worth is determined by what you own in comparison to what you...

Financial System correct answers A financial system consists of financial markets and financial intermediaries which connects people with excess money (lenders) with people who needs money for spending (borrowers). Two Ways of Financing correct answers Direct finance and indirect finance Direc...

An over-the-counter agreement that locks in a price, generally interest rate or exchange rate, that will apply at a specified future date. correct answers Forward The ownership stake in the corporation that is given to shareholders of the corporation. correct answers Equity The markets in whic...

Which of the following are not main participants in financial market transactions? (a) households (b) financial institutions (c) governments (d) all of the above are main participants in financial market transactions correct answers d 2. Financial markets (a) facilitate the flow of funds...

money correct answers anything that serves as a medium of exchange allows for: - specialization and division of labor -the development of a financial system to channel savings to investment - increases economic efficiency, output, income and wealth medium of exchange correct answers anything ...

Financial Markets correct answers markets in which funds are transferred from people who have an excess of available funds to people who have a shortage of funds Security correct answers (financial instrument) a claim on the issuer's future income or assets Bond correct answers a debt securit...

Certificate of deposit correct answers a document showing that an interest-bearing loan has been made to a bank or other financial institution. financial assets correct answers claims on the property and the income of the borrower financial intermediaries correct answers institutions such as banks...

Money correct answers as a medium of exchange as it is generally accepted as payment for goods and servuces Money correct answers a store of value and a unit of account Money correct answers standard measurement that generally determines the value of things. Money correct answers For econom...