Concept explainers
The importance of financial markets in the economy
Explanation of Solution
Financial market plays an important role in the development and
Financial market also helps in maintaining optimal saving-investment relationship. A country needs more investment to be on the path of economic development. This can happen when savings are channelized through productive resources in the form of investment. Financial system also helps in the development of trade. It also helps in fiscal discipline so as to stop inflation and depression from reaching the extreme levels.
Concept Introduction:
Financial Market - It is a market where we trade financial instruments. Equity, derivatives, bonds and shares are the examples of instruments used in this market.
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Chapter 1 Solutions
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