Finance - chapter 1

Financial market is. where goods are sold and bought. where financial assets are exchanged. where we buys securities, bonds and goods.

Financial intermediaries are: organizations that serve as a middlemen and transfer funds from those with excess to those with a shortage. organizations that lend the capitals for their purposes of investment. organizations that borrows capitals for their purposes of investment.

Financial market includes. bonds market, stock market and money market. bonds market, stock market and capital market. bonds market, stock market and foreign exchange market.

An important outcome of the bond market is the establishment of .... interest rates. interest. yield to maturity.

Interest rates are. what borrowers pay for the use of money they obtain from lenders. a claim on the issuer's future income or assets. the price of one country' currency relative to another currency.

Short term rate tends to (be) .... more and to (be) .. than long term rates. volatile ... fluctuate. fluctuate ... lower. fluctuate ... higher.

Stock market is. where transactions are completed for financial assets. where transactions are completed for goods. where transactions are completed for capitals.

A weak dollar leads to. more expensive American goods. cheaper foreign goods and more benefit for consumers. more expensive foriegn goods.

Financial institutions include: central bank, commerical banks, insurance companies, mutual funds, finance companies, mutual savings banks, credit unions, savings and loans, pension funds and investment banks. undefinedcentral bank, commerical banks, insurance companies, mutual funds, finance companies, mutual savings banks, credit unions, savings and loans and pension funds. commerical banks, insurance companies, mutual funds, finance companies, mutual savings banks, credit unions, savings and loans, pension funds and investment banks.

Central bank in US is called. Federal Reserve System. US major bank. US Federal Fund.

... is the new means of delivering financial services electronically. Deregulation. E-finance. Technology.