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Financial Markets and Risk - Essay Example
Finance & Accounting
Pages 4 (1004 words)
Topic: Financial Markets and Risk Name: XXXXXXXXXXX Professor: XXXXXXXXX Institution: XXXXXXXX Course: XXXXXXXXXX Date: XXXXXXXXXXX Introduction The current state of economy is greatly influenced by business performance. Financial institutions facilitate financial transactions and events in any economy…
These operate in a competitive financial market where the objectives of firms are met. The objectives of the firm include: profit maximization, wealth maximization, employee welfare, customer interest, society welfare, and duty to the government. The current rate of economic development, characterized by fluctuations in price, increased poverty levels. Increase in population growth rate, among other factors, has led to a crisis in the financial institution. These have also impacted on the performance of the financial market sector, savings and investment sector, as well as the general performance of the economy. This report brings out clearly the main long-term saving and investment products provided by the financial institutions, as well as the effects of increases in the rates of interest to the people and the commercial banks. Main long-term investment products for consumer provided by financial institutions The major sources of long term finance in the capital markets are actually the products provided to the consumer for long term investment. The consumers are assumed to be rational in their choices among the various alternatives presented. The choice of the product to use will depend on: time element, cost of finance, flexibility and the mode of payment. ...
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