Assignment 5
Student’s Name: María Daniela Rodríguez Naranjo
Nua: 231468
After watching the video, answer the following questions in complete sentences.
What is Finance?
It is monetary resources comprising debt and ownership funds of the State, company or person. It is money management
What is Financial System?
It is a set of institutions and tools that allow the control and movement of money in a countryWhat are the functions of a financial system?
The main function is the transfer of funds through financial intermediaries such as the bank and financial markets such as stocks
It provides payment system for the exchange of goods and services in the economy
It provides the financial capital for long term capital formationn for the government and business organizations
How are the main types of financial institutions categorized? Describe each one.
Banking and Non Banking: they are basically the user of the money or purveyors of the credit, but ther are not the creator of the credit
Intermediaries vs non intermediaries: intermediaries intermediate between the savers and the investors. Non intermediaries they do the loan business where the resocurces are not directly from the savers
Which are the main classes of financial instruments issued in a financial system? Describe them in detail.
Stock: are a type of security that gives stockholders a share of ownership in a company.
Efective: money
Bonds: is loan from an investor to a borrower such as a company or goverment
What are the distinctions between various types of financial markets according to their function? Explain them.
Money and capital markets: distinction is the period of maturity of financial assets issued, money with a period of one year or less and capital markets with a period above one year
Primary and Secondary markets: primary deal with the new financial claims and secondary deal in securities already issued
What does the “flow of funds” refer to? Explain in detail.
They are cash income and expenses that are carried out in all sectors.Write a final reflection on the topic, mentioning what were the most important aspects you learned.
Really, financial systems are very important in our economy, knowing about this was very enriching.
ResponderBorrarThanks for sharing (:
I like your way of explaining.
ResponderBorrarJust to add to the cash flow question, it can also be used for decision making and investing in stocks and bonds.
You are right when you mention that finances are important to understand the order of our world, I think that with the passage of time we have realized that they take more relevance and importance of these types of issues, to prepare for the future
ResponderBorrarI agree with your answer about how the financial system works because you make it very clear and easy to understand.
ResponderBorrar