Ch16PPP - Chapter 16 The Financial System Learning Objectives 1 2 3 Outline the structure and importance of the financial system List the various

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The Financial System Chapter 16
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Outline the structure and importance of  the financial system. List the various types of securities. Define financial market, and distinguish  between primary and secondary financial  markets. Describe the characteristics of the major  stock exchanges. 1 Learning Objectives Discuss the organization and  functioning of financial institutions. Explain the functions of the Federal  Reserve System and the tools it  uses to control the supply of money  and credit. Evaluate the major features of  regulations and laws affecting the  financial system. Describe the global financial system. 2 3 4 5 6 7 8
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The  financial system  is the process by  which money flows from savers to users. The Financial System
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Financial System Savers Users Financial Institutions Financial Markets Savings is a function of  many variables. Funds can be transferred  between users and savers  directly or indirectly. Understanding the Financial System
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Securities Financial instruments Obligations on the part of the issuer Businesses and governments Provide rate of return to purchasers Types of Securities Money market instruments Bonds Stock
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Short-term debt securities Issued by governments, financial institutions, and  corporations Investors are paid interest for the use of  their funds Generally low-risk U.S. Treasury bills, commercial paper, and  bank certificates of deposit Money Market Instruments
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Government Bonds Bonds sold by the U.S. Department of the  Treasury Municipal Bonds Bonds issued by state or local governments  Revenue bonds are used toward a project that will 
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This note was uploaded on 02/13/2012 for the course ART HISTOR 105 taught by Professor Kenfield during the Spring '11 term at Rutgers.

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Ch16PPP - Chapter 16 The Financial System Learning Objectives 1 2 3 Outline the structure and importance of the financial system List the various

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