Flashcards : Financial Institutions and Market Dynamics — 9 cartes

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1Question

Financial institutions — role?

Réponse

Intermediaries connecting savers and borrowers.

2Question

Intermediation — definition?

Réponse

Channeling funds from savers to borrowers.

3Question

Types of financial institutions — examples?

Réponse

Commercial banks, investment banks, insurance companies, investment funds, pension funds.

4Question

Facilitating Payments — role?

Réponse

Enabling transactions for goods and services.

5Question

Risk Management — purpose?

Réponse

Mitigating credit, interest, liquidity risks.

6Question

Financial Innovation — example?

Réponse

Creating new financial products and services.

7Question

Asset Transformation — meaning?

Réponse

Converting short-term liabilities into long-term assets.

8Question

Commercial Banks — services?

Réponse

Accept deposits, give loans, provide payment services.

9Question

Investment Banks — focus?

Réponse

Capital raising, securities underwriting, M&A advisory.

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1. What is the primary purpose of financial institutions within the economy?

2. What is the primary function of commercial banks within the financial system?

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