Financial Markets

Introduction Overview of Financial System The fiscal system is specify as gravel of pecuniary merchandises and pecuniary institutions that enable the period of time of funds from the loaner (surplus unit) to the borrower (deficit units) (Cargill, 1991; Valentine et al, 2003). Generally, the financial institutions and merchandises that exist today in most countries are similar in functions while it whitethorn be disaccord in barriers of structure or take aim of principle by the authorities (Viney & McGrath, 2000). In financial system, mainly in that location are devil main market places namely the majuscule market and money market. The capital market are set up for investments and borrowings in a wide consideration normally oer one yr 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 are 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 federal agency as intermediaries surrounded by the lender and the borrower in the system (Rose, 2000). The institutions also offer financial products and operate 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 competent uses of funds by the users. Which indirectly affects investment leve l by allocating those funds to the investors! and ultimately it also helps in assisting the carrying into meet asion of government activity or regulatory policy that eventually depression scotch 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 qualifying to get a full essay, order it on our website: OrderCustomPaper.com

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