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- How do Financial Markets help the economy and how can it hurt the economy? Give examplesFactors that affect the entire economy and all its participants can be associated with: a. External Factors b. Macroeconomic environment c. Microeconomic environment d. Financial InstitutionsHow do you think financial institutions help financial market to work?
- What role do financial markets play in our economy and what is the relationship between financial institutions and financial markets?Banks are important to the study of money and the economy because they provide a channel for linking those who want to save with those who want to invest. have been a source of financial innovation that is expanding the alternatives available to those wanting to invest their money. are the only financial institution to play a role in determining the quantity of money in the economy. do all of the above. do only A and B of the above.What are the opportunities brought about by Financial Technology with respect to the goals of Financial Institutions?
- a) One of the biggest problems for any economy is to figure out how to get or transfer money from people or firms who want to save (savers) to people or firms who want to borrow (investors). • Explain how financial markets can help to solve this problem efficiently. • Discuss how financial markets function and which tools they can offer to solve this problem. • Discuss how financial systems are of crucial significance to adequate capital formation, which is indispensable to a speedy economic growth and development. b) Analyze the relationship of financial development and economic growth/development. In other words, discuss how financial, especially capital, markets help economic growth and development.The difference between the finance concepts could be simply described by the level of economyStatement 1. Distributional concept is for Macro (governmental) level, reproductive concept is closer to micro (corporate) levelStatement 2. Cash flow management concept refers to macro level as well as consumption concept to transactions settlementAre these statement correct and why?a. “A robust financial market is one of the pillars of stable economic growth and securedfinancial sustainability for the future.” Discuss. b. Why do managers of financial institutions care so much about the activities of the Central Bank?