Week 2 - Individual Assignment - 90378

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Week Two – Individual Assignment University of Phoenix 1. Chapter Study Questions Prepare responses to the following chapter study questions located in Chapter 14 of the Financial Management: Principles and Applications text, by Keown. a. 14-1 b. 14-3 c. 14-4 d. 15-12A e. 15-13A 14-1.. What are financial markets? What function do they perform? How would an economy be worse off without them? Financial markets are essentially the primary means which assists people in purchasing, sell, and trading financial securities such as bonds and stocks. Financial markets basically direct funds from agents to lenders, and vice-versa. Some forms of financial markets are money markets, bond markets, capital markets, commodity markets, and even insurance markets. Borrowers would need to locate their own lenders if there were not financial markets. However, banks make this much easier for borrowers by taking deposits and lending out money in an organized way. Financial markets basically distribute the supply of savings from a surplus to ones with a deficit. The economy would surely experience difficulties devoid of a financial market system due to a lack of overall wealth. Everyday business activities would lack necessary funding...
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Week Two – Individual Assignment

 

University of Phoenix

 

 

 

 

 

 

 

 

 

 

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