Capital Market Quiz

Play Quiz

Study Flashcards

Spaced Repetition

Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

A network of banks and financial intermediaries
A platform for research and development
A set of institutional arrangements for mobilizing financial surpluses (correct)
A mechanism for distributing financial assets

<p>Acting as intermediaries for financial transactions (B)</p> Signup and view all the answers

<p>Facilitating the transfer of funds and risks (C)</p> Signup and view all the answers

A network of institutions and markets that allow funds to flow from savers to borrowers.

They act as go-betweens, taking deposits from savers and providing loans to borrowers.

They play a crucial role in allocating capital, managing risk, and facilitating economic growth.

They act as intermediaries between savers and borrowers, providing a safe and efficient way to move money.

Signup and view all the flashcards

They are used to transfer funds and risks, enabling investors to participate in different projects or markets.

Signup and view all the flashcards

A financial system is a network of institutions, markets, and instruments that facilitate the flow of money and credit in an economy.

The main function of financial institutions is to act as intermediaries between savers and borrowers, facilitating the flow of funds.

The financial market involves the buying and selling of financial assets, such as stocks, bonds, and derivatives, to facilitate the allocation of capital.

Banks play a crucial role in the financial system by accepting deposits, making loans, and providing payment services.

The primary function of financial assets is to serve as a store of value and a medium of exchange, enable economic transactions, and facilitate investment and risk management.