Financial Intermediaries and The Euro Markets - Essay Example

Only on StudentShare

Extract of sample
Financial Intermediaries and The Euro Markets

According to the research findings the financial environment therefore directly or indirectly influence the financial system of any country. Thus the need for financial intermediaries to act as the middlemen in this transactions is important. Therefore for investors to get profit and the lenders to be able to give away money to borrowers the need for financial markets are vital. Financial intermediaries can be defined as an institution that acts as the middlemen between the investors and the firms. These financial institutions include chartered banks, insurance companies, investment dealers, mutual funds, and pension funds. Liquidity has been the basis of these kind of transactions between the parties either the borrowers or the investors. It can be defined as the ease with which a given asset can be changed into cash or by getting access to credit. Thus the main concept of liquidity is to obtain cash. Liquidity is often determined by two factors that measure how easy it is to change it into cash or make it possible for borrowers to obtain the cash. The policy interest rates and the structure of the interest rates paid by the borrowers are often the indicators of liquidity. These rates often influence one either to be motivated to borrow or leave the money with the banks. Most of the world banks are involved in market liquidity which is the rate at which a borrower is able to quickly buy or sell the financial assets at a given time without changing the market price. ...Show more

Summary

This article will explore the subject of financial intermediaries and the euro markets under the following divisions: financial intermediation and liquidity; Euromarkets and their growth; the return to convertibility and other associated events; the US balance of payments and so on…
Author : eglover
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Financial Intermediaries and The Euro Markets"
with a personal 20% discount.
Grab the best paper

Related Essays

Explain how the financial difficulties faced by the Irish and Greek governments have impacted on Euro debt markets
Majority of Western European states have higher GDPs and living standards whereas many of the Eastern Europeans economies are still struggling to attain an improved growth rate. The recent European sovereign debt crisis negatively affected the Europe’s economic status.
3 pages (750 words) Essay
Financial Markets and Institutions
According to Allen and Gale (2000, chap 1), Financial intermediaries can be broadly classified into: deposit taking institutions such as banks, credit unions, savings and savings societies; Insurance schemes such as life insurance policies; investment ventures such as retirement benefits schemes and mutual funds.
6 pages (1500 words) Essay
Interest Rates Swa[s Require Markets to be Inefficient
Foreign exchange market comprises of an important integral component; interest rates. Interest rates help in determining the value of one currency in terms of another. Different currencies carry different values relative to the base currency, thereby allowing for cross border transactions internationally.
4 pages (1000 words) Essay
Financial Institutions & Markets - Financial Innovation
can be supposed to be the attributing factors towards the development of financial innovation. Innovations are mainly done to achieve the basic objectives of financial systems like facilitating the required payment instruments, increased savings, reduction in costs, etc.
6 pages (1500 words) Essay
Financial Markets
Financial directors make decisions in such environments like the financial markets, financial institutions, taxation and legal instruments as well as the nature of the region's economy. In addition to that, the financial atmosphere both determines the existing monetary substitutes and the influences that come out from many decisions.
6 pages (1500 words) Assignment
Financial markets
Preparation of a balanced portfolio using broad market index funds is one of the most effective and simplest ways to prosper and diversify over the long term. The main underlying objective of an asset manager in offering a balanced portfolio to his clients is to increase the return from the investment made by the investor when all the elements of a portfolio is providing same risk or is to select a portfolio which would yield minimum risk when the return generated from the portfolio is constant.
3 pages (750 words) Coursework
Discuss the theory of comparative advantage in relation to international trade, by providing theoretical examples and empirical evidence, highlighting its strength and any shortcoming that it may have.
In turn, the countries would have an opportunity to import goods from the country that had an absolute advantage in those goods (Hall and Lieberman 2007).
10 pages (2500 words) Essay
Principal of Finance
The tax rate and the dividend payout ratio are fixed. Given this information, which one of the following statements must be true?  17. Bonner Collision has shareholders equity of $141,800. The firm owes a total of $126,000 of which 60 percent is payable within the
2 pages (500 words) Assignment
Evaluate the recommendation to provide a tax system with a neutral treatment of life-cycle savings for the vast majority of taxpayers (as described in chapter 13).
In the year of 2007/08 before the occurrence of economic recession, the UK government projected that the tax receipts would rise from 549 billion pounds in 2007/08 to 616 billion pounds in 2009/10. On the contrary, the tax
6 pages (1500 words) Assignment
Financial Markets and Institutions homework
The Stock Markets are entities where companies sell their partial ownership in the form of shares in order to raise capital. The raised capital then in turn is used in order to finance the companies’ operations (Wurgler, 2000). The Bond Markets are places
3 pages (750 words) Assignment
Find out how much would it cost
to get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT