Asia 2

QUESTION 1 a) Why is each ply of the pecuniary system important to households, businesses, and governments? What kinds of lives would we be living today if there were no pecuniary system or no fiscal markets? Answer:There are seven function of the pecuniary system: saving function, wealth function, liquidity function, credit function, allowance function, risk protection function and policy function. Each function of financial system will create could do with the notes and capital markets with the emanate of funds and the flow of financial services, income, and financial claims. Savings Function: Bonds, armourys, and other financial claims exchange in money and capital markets submit a fat; relatively low-risk outlet for the publics saving which flow through the financial markets into investment. Wealth Function: A stock of assets (the financial instruments) sold in the money and capital markets provide an excellent way to store of wealth. Liquidity Function: financial markets provide liquidity (immediately spendable cash) for savers who hold financial instruments scarce are in need of money. If we stool not wealth, savings, liquidity, our early consumption may be limited. It will also be terrible if our source of income is disrupted.

Credit Function: Global financial markets furnish credit to finance consumption and investment spending. If we halt not credit, our consumption and investment spending will be limited. Payments Function: The global financial system provides a apparatus for making payments for goods and services. If we have not the payments function, we will not be able to buy goods and services. Risk Protection Function: The financial markets around the world offer businesses, consumers, and government protection against life, health, property, and income risks. If we have not risk protection, we will be uncovered to life, health, property, and income risks insurance Function: The financial markets are a channel through which... If you want to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper