Financial Markets

Introduction Overview of Financial System The fiscal system is define as gravel of pecuniary merchandises and financial institutions that enable the bunk of funds from the loaner (surplus unit) to the borrower (deficit units) (Cargill, 1991; Valentine et al, 2003). Generally, the financial institutions and securities industry places that exist today in most countries are similar in functions while it whitethorn be disaccord in verges of structure or take aim of principle by the authorities (Viney & McGrath, 2000). In financial system, mainly in that location are 2 main markets namely the large(p) market and money market. The capital market are set up for investments and borrowings in a wide verge ordinarily oer one course of study or known as a long term market, whereas the money market deals with all curt term funds, usually less than a year or short term markets (Valentine et al, 2003; Viney & McGrath, 2000; Rose, 2000). Within those markets, there ar e simple and secondary market as well as the extraneous exchange market and the derivative market, which deals with both short and long term funds. The financial institutions play enjoyment as intermediaries surrounded by the lender and the borrower in the system (Rose, 2000). The institutions also offer financial products and go to the public.

The financial system in most countries plays an valuable role for the economy of the countries. It promotes and allocates savings mainly from lender to borrower, which mean it enable, the cost-efficient uses of funds by the users. Which indirectly affects investment l evel by allocating those funds to the invest! ors and ultimately it also helps in assisting the carrying into make believe asion of political science or regulatory policy that eventually depression stinting growth (Viney & McGrath, 2000). Overview of financial regulation Financial regulation is an act to which a government or a non-government organization regulates the financial sector. It subjects the financial sectors to guidelines chose main objective is to keep the integrity of the financial...If you deviation to get a full essay, order it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper