Question

Name five SPECIFIC examples of:
Financial Markets
Financial Institutions
Financial Instruments

Answer 1

Examples of financial market :-

1) Stock Market :- Where share of public limited companies listed on the stock exchanges are traded.

2) Bond market :- In bond market investors buys bonds of companies and companys repays them on their maturity.

3) Commodities market :- In thia market investors buys and sell commodities and natural resources.

4) Derivatives market :- In this market the value of contracts depends upon the market value of the assets being traded.

5) Foreign Exchange market :- In this market forex currencies are being traded.

Examples of financial Institutions :-

1) Central bank of the country

2) Commercial banks

3) Brokerage firms

4) Insurance Companies

5) Investment banks or companies

All of the above institutions are termed as financial institutions because they enter financial transactions.

Examples of financial instruments :-

1) Letter of credit

2) Commercial Paper

3) Debentures

4) Preference shares

5) Certificate of deposits