Financial Markets and Institutions, Part 2

Financial Markets and Institutions, Part 2 Essay example
High school
Finance & Accounting
Pages 5 (1255 words)
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Financial Markets and Institution, Part 2 Name Institution 1st December, 2013 Introduction Financial market can be defined as commercial place where financial assets are such as bonds and stock are sold or purchased. A financial market plays a big role in transfer of funds/capital that enables government, companies and consumers to have what is known as cash flow.


Financial institutions on the other hand makes the trade to run smoothly through rendering of loans, grants and other financial aids to firm and individual. Additionally, financial bodies accept the deficit units therefor enabling investors to access capital to establish companies and industries. Question 1. Analyze the role financial market playing creating economic wealth in the U.S. In the economy of United States of America financial markets plays several roles. This markets are usually seem to the backbone to American economy this is because many people in this country are wealth merchants who spend most of their time in business activities. With respect to their economy, trader maximizes the financial markets opportunity wisely in order to stabilize the economy of this country. The financial markets controls and transfers money from the persons with excess money with the needy ones. They help the students from difference institution to get loan, which they use to pay their school fees, it also helps the government to get capital for its expenditure, business people are able to get funds and expand their operations. In order financial market to have funds to rent to the needy persons, business and households should be willingly to supply the excess funds to the financial market. ...
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