FINANCIAL MARKETS AND INSTITUTIONS
COMPREHENSIVE SOLVED QUESTIONS AND
COMPLETE ANSWERS
◉ deficit spending units (DSU).
Answer: have spending for the period
does not have extra income
cannot save
◉ SSU.
Answer: saver
lender
investor
most are households
◉ dsu.
Answer: borrower
most are businesses or governments
◉ who normally lends to who in a market ?.
Answer: SSU's normally lend to DSU's
, ◉ who gets financial claims in an investment.
Answer: SSU (household, individual, investor)
◉ who gets monetary funding in an investment.
Answer: DSU (business, government, entity)
◉ SSU's lend to DSU's.
Answer: DSU take on liability
SSU take on assets
one's liability is another ones asset - what is payable by one is
receivable by another
◉ financial assets.
Answer: Assets that represent claims on the cash flows from real
assets. Examples include stocks and bonds issued by corporations to
raise capital and finance investments.
◉ financial system in balance.
Answer: Total financials = total liabilities
◉ transfer of funds.
COMPREHENSIVE SOLVED QUESTIONS AND
COMPLETE ANSWERS
◉ deficit spending units (DSU).
Answer: have spending for the period
does not have extra income
cannot save
◉ SSU.
Answer: saver
lender
investor
most are households
◉ dsu.
Answer: borrower
most are businesses or governments
◉ who normally lends to who in a market ?.
Answer: SSU's normally lend to DSU's
, ◉ who gets financial claims in an investment.
Answer: SSU (household, individual, investor)
◉ who gets monetary funding in an investment.
Answer: DSU (business, government, entity)
◉ SSU's lend to DSU's.
Answer: DSU take on liability
SSU take on assets
one's liability is another ones asset - what is payable by one is
receivable by another
◉ financial assets.
Answer: Assets that represent claims on the cash flows from real
assets. Examples include stocks and bonds issued by corporations to
raise capital and finance investments.
◉ financial system in balance.
Answer: Total financials = total liabilities
◉ transfer of funds.
