Month: March 2021

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The Main Functions of Financial Markets

March 22, 2021 admin Comments Off on The Main Functions of Financial Markets

There are a wide range of different financial markets. Each plays a role in the transfer of wealth and liquidity across economies. These markets all touch each other in some way, and it’s worth knowing how each functions—both alone and as part of the economy at large. Here’s a look at the primary functions of financial markets and their purposes.

1. Money Markets
Money markets are highly liquid short-term maturities. They represent short-term loans and other debt investments. The money market is an important pillar of the greater financial economy because it provides the tangible liquidity needed to facilitate cash swaps between …read more […]