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Finance grew out of economics and accounting, and it is generally divided into three areas: ____________ relate to the markets where interest rates and stock and bond prices are determined.

a) Capital Markets
b) Spot Markets
c) Private Markets

User Luan Si Ho
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1 Answer

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Final answer:

Finance is deeply interconnected with Capital Markets, which are essential for the long-term trading of corporate and government bonds, and certificates of deposit. It's where interest rates, as well as stock and bond prices, are established for long-term financial assets.

Step-by-step explanation:

Facts about financial markets are crucial to the field of finance which has three principal areas. One of these revolves around the Capital Markets, which are where long-term funding and investments occur ranging over one year. These markets pertain to the issuance and trading of corporate bonds, government bonds, and long-term certificates of deposit. Contrary to Capital Markets, Money Markets deal with short-term funds, typically less than a year. When you refer to the markets where interest rates and stock and bond prices are determined, especially with the movement of financial assets for the long-term, this directly aligns with Capital Markets. These markets play a pivotal role in facilitating the flow of finances from suppliers like households who are saving, to demanders such as businesses in need of capital.

User Jon Angliss
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