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Contemporary Issues in Financial Services - Essay Example
Author : bartelleloise
Finance & Accounting
Pages 8 (2008 words)
FINANCIAL INTERMEDIARIES By Institution 27th, February, 2012 Introduction Financial markets bring together the borrowers and lenders, who transact with financial assets, depending on the type of needs they all have. This has therefore, resulted in the argument about the role or the importance of financial intermediaries in financial markets…
Nonetheless, from this essay, one will understand that financial intermediaries are here to stay, considering their positive influence in the economy, which supersedes their negative influence in the economy. Financial markets exist in almost all countries in the world, as these play an important role in the economy of a country. A financial market can be defined as a type of market where there is the trade of money and other assets, which are in the form of finances. In this kind of market, financial assets are traded in different manners. For instance, this includes the exchange of previously traded financial assets, as well as the trade of new financial assets. Besley and Brigham (2011) note that, financial markets are different from asset markets, and that this is a conceptual term, since financial markets lack a specific location, as in the case of asset markets. In the financial markets, borrowers and lenders interact at different levels. Therefore, there is also borrowing and lending activities in financial markets. ...