Financial claims and obligations traded in these Money market - markets have maturities of less than one year. Financial claims and obligations traded in these Capital Markets - markets have maturities of more than one year. Are specialized business firms whose Financial Intermediaries - activities include the creation of financial assets and financial liabilities. With financial intermediation, savings are transferred to economic units that have opportunity for profile investment. Real resources are therefore allocated more effectively and real output for the economy as a whole is increased. Among the main financial intermediaries include; Commercial Banks Insurance companies Pension funds Savings and loans Mutual funds Investment funds Finance companies Money market funds Credit unions. Types of Financial Instruments Currency coins and paper –
Money market - Financial claims and obligations traded in these markets have maturities of less than one year. Capital Markets - Financial claims and obligations traded in these markets have maturities of more than one year. Financial Intermediaries - Are specialized business firms whose activities include the creation of financial assets and financial liabilities. With financial intermediation, savings are transferred to economic units that have opportunity for profile investment. Real resources are therefore allocated more effectively and real output for the economy as a whole is increased. Among the main financial intermediaries include; Commercial Banks Insurance companies Pension funds Savings and loans Mutual funds Investment funds Finance companies Money market funds Credit unions. Types of Financial Instruments Currency – coins and paper
financial_markets_and_institutions111.docx