Explain how the financial markets and institutions resolve the mismatch between the needs of surplus and defecit units in the economy with regard to risk, term and return.
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MODULE: UK financial sector TUTOR: DATE: 05/12/01 TITLE: 'EXPLAIN HOW THE FINANCIAL MARKETS AND INSTITIUIONS RESLOVE THE MISMATCH BETWEEN THE NEEDS OF SURPLUS AND DEFECIT UNITS IN THE ECONOMY WITH REGARD TO RISK, TERM AND RETURN.' BY: Chris Green, 0006149 WORDS: 1200 Financial markets and institutions play a big role in the financial sector. They can help resolve the mismatch between the needs and surplus units in the economy. When looking at this risk, term and return cannot be over looked. So, what is a financial market? Basically it's a place within which financial instruments can be bought and sold (for example the London stock exchange). Financial markets deal in marketable financial claims. These are one that can be bought or sold from another individual. Such things as shares and stocks are what is normally traded and usually through a stockbroker. There are many types of markets under two main titles, money markets and...


