Saturday, April 18, 2009

financial markets in the financial system

financial markets bring savers and borrowers together directly.When you buy a new share of Boomco to finance its grows . in this from of finance , known as direct finance , an individual saver holds financial claims issued directly by an individual borrower.These direct finance arrangement take place through financial markets,markets in which investors lend their savings directly to borrowers.To analyze the structure of financial markets,we focus on the two principal tasks of the financial system:matching savers and providing risk-sharing,liquidity,and information services.

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