14-1, 14-2, 14-3, 14-4, 14-7 (Ch. 14)
|14-1. |What are fiscal markets? What function do they perform? How would an economy be worse off with let on them? |
| |Financial markets are those institutions and procedures that facilitate proceedings in all types of monetary |
| |claims (securities). The corporation raises funds in the pecuniary markets by selling securities. The corporation |
| |receives cash in return-generating assets- countersign projects and the cash flow from those assets is then either |
| |reinvested. |
|14-2. |Define in a technical sense what we mean by financial intermediary. Give an example of your definition. Financial |
| |intermediary is a financial institution such as a coin bank, credit union, amends company which acts as the middleman|
| |between those who expect to sum and those who want to borrow. . An example would be in banking the bank borrows |
| | silver from the people that deposit money into their savings accounts the bank in return lends money to people who |
| |borrow money from the bank collecting interest on money they lend out while the people who deposit money collect |
| | microscopic interest from the bank.
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|14-3. |Distinguish between the money and capital markets. |
| |money market all institutions and procedures that facilitate transaction in short credit instruments. Capital |
| |market all institutions and procedures that facilitate transactions in long-term financial instruments. |
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|14-4. |What major benefits do corporations and investors...If you want to get a full essay, order it on our website: Orderessay
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