FINANCIAL MARKETS AND INSTITUTIONS UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

FINANCIAL MARKETS AND INSTITUTIONS
UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS

◉ financial markets.
Answer: markets for financial instruments, also called financial
claims or securities


◉ financial institutions.
Answer: financial intermediaries - facilitate the flow of funds from
savers to borrowers


◉ economic units with financial needs.
Answer: housegolds
businesses
governments


◉ households.
Answer: supply labor
demand product
save for the future
*household investments is a means of transferring funds to firms

, ◉ businesses.
Answer: demand labor
supply products
invest in productive assets
use funds from income, the government, and household investment


◉ governments.
Answer: collect taxes
provide public goods
directly influences businesses and households in many ways - taxes,
subsidies and regulation


◉ budget positions that create financial needs of economic units.
Answer: surplus
deficit


◉ surplus spending units (SSU).
Answer: have income for the period
have extra spending money
that can be saved