FINANCIAL MARKETS AND INSTITUTIONS UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS COMPLETE STUDY GUIDE FULL SOLUTION

FINANCIAL MARKETS AND INSTITUTIONS
UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS COMPLETE STUDY
GUIDE FULL SOLUTION

●● 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