FIN370 Week 2 Chapter Questions

FIN370 Week 2 Chapter Questions - 14-1. What are financial...

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14-1. What are financial markets? What function do they perform? How would an economy be worse off without them? The institutions and procedures that assist in transactions in all types of financial claims are called financial markets and they report the prices for each good. Their purpose is to distribute the supply of savings from those economic units with a surplus to those with a deficit. Without the appropriate development of the financial market system the economy would have extreme difficulty. The financial market brings value to the economy. The rate of capital would basically be less as well the lack of expedient movement is stock contributions. When this happens all other aspects fall short as well e.g. buildings and equipment. 14-3. Distinguish between the money and capital markets. Money markets facilitate transactions using short-term financial instruments. Capital markets facilitate transactions using long-term financial instruments. 14-4.
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This note was uploaded on 08/22/2011 for the course ACCOUNTING 201 taught by Professor Stevejoseph during the Winter '11 term at Aarhus Universitet.

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FIN370 Week 2 Chapter Questions - 14-1. What are financial...

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