Question

In: Finance

Why are Financial Markets & Institutions important (and may be interesting)?

Why are Financial Markets & Institutions important (and may be interesting)?

Solutions

Expert Solution

Financial Markets and institutions are important because-

A. Financial markets are blood of the economy because financial market will be continuously supplying finance to different sectors of the economy and help the economy grow.

B. financial Markets and institutions are also facilitating various depositors to invest their money and provide them a chance to grow their money

C. Financial Markets are also attracting foreign direct investment asforeign direct investments will be investing in these companies and institutions and the financial systems of an economy

D. Financial markets will be providing chances for various companies to to list themselves and provide them a chance to grow.

E. Financial markets will also be helpful in proper adoption of of monetary policy of a central government because it will be helpful in maintenance of proper money flow in an economy.

F. it will be providing credit to a large section of society and infuse liquidity into the overall system.


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