Financial System Final(complete solutions)

Money correct answers as a medium of exchange as it is generally accepted as payment for goods and servuces Money correct answers a store of value and a unit of account Money correct answers standard measurement that generally determines the value of things. Money correct answers For economists, it is also considered a legal tender, that currently, it is the form, by law, a debtor may require a creditor to accept in payment of a debt. LENDERS & BORROWERS correct answers the two main players in the system. Financial systems correct answers is a network of institutions, markets, and contracts that bring together lenders and borrowers Financial institutions correct answers a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. They include a broad range of business operations within the financial services sector, including banks, insurance companies, brokerage firms, and investment dealers. Financial Asset correct answers a liquid asset that gets its value from a contractual right or ownership claim. Cash, stocks, bonds, mutual funds, and bank deposits are all are examples of financial assets. 1. Stocks 2. Bonds 3. Currencies 4. Commodity correct answers Financial Investment Asset 1. Real Estate 2. Commodity correct answers Real Investment Asset Top-down portfolio management correct answers tries to allocate assets by country or region, as well as the type of asset Bottom-up portfolio management correct answers is looking at specific company/ies then investing in it, with the tendency of investing in just one country and/or one class Investment Management correct answers involves channeling of funds by means of financial intermediaries,transferring and scheduling of risks, appropriation of the investment class, and managing ownership of funds.