Functions of Financial Markets.Fill in the blanks in the following passage by choosing the most appropriate term from the following list: CFO, save, financial intermediaries, stock market, savings, real investment, bonds, commodity markets, mutual funds, shares, liquid, ETF's, banks. Each term should be used only once. Financial markets and ___________ channel _____ to ______. They also channel money from individuals who want to ________ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, _______, such as the Vanguard Index fund, and ________, such as SPDRs or "spiders," allow individuals to spread their risk across a loarge nmber of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the ______ to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the _________ of public companies are _________ because they are traded in huge volumes on the __________ . ___________ are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the ________ of a company that is contemplating an issue of debt can look at the yields on existing _________ to gauge how much interest the company will need to pay.
Class book: Fundamentals of
Functions of Financial Markets.Fill in the blanks in the following passage by choosing the most appropriate term from the following list: CFO, save, financial intermediaries, stock market, savings, real investment, bonds, commodity markets, mutual funds, shares, liquid, ETF's, banks. Each term should be used only once.
Financial
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