Question

Financial markets and _______ channel _______ to_______ . They also channel money from individuals who want to _______ for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, _______ , such as the Vanguard Index fund, and _______ , such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the _______ to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the _______ of public companies are _______ because they are traded in huge volumes on the _______ . _______ are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the _______ of a company that is contemplating an issue of debt can look at the yields on existing _______ to gauge how much interest the company will need to pay.a. financial intermediaries; b. savings; c. real investments; d. save; e. mutual funds; f. ETFs; g. commodity markets; h. shares; i.liquid; j.stock market; k.banks; l. CFO; m. bonds

Answer 1

Financial markets channel money, allow risk management, provide liquidity and payment services, and offer valuable information.

Step-by-step explanation:

Financial Markets and their Functions

Financial markets play a crucial role in channeling money to individuals, businesses, and governments. They facilitate the transfer of savings from individuals who want to save for the future to those who need cash to spend today. Financial markets also allow investors to adjust their risk by offering various investment options like mutual funds and exchange-traded funds (ETFs). These investment vehicles help individuals spread their risk across a diversified portfolio of stocks.

Additionally, financial markets provide mechanisms for managing risks. For instance, commodity markets enable entities like farmers and bakers to reduce their exposure to price fluctuations by engaging in futures contracts. Furthermore, financial markets and intermediaries such as banks offer liquidity and payment services, allowing investors to convert their investments into cash when needed. Lastly, financial markets provide valuable information to participants. For example, potential bond issuers can assess prevailing market interest rates by examining yields on existing bonds.

Answer 2

Financial intermediaries; savings; real investments; save; mutual funds; ETFs; commodity markets; shares; liquid; stock market; banks; CFO; bonds

Step-by-step explanation:

Financial markets and FINANCIAL INTERMEDIARIES channel SAVINGS to REAL INVESTMENTS . They also channel money from individuals who want to SAVE for the future to those who need cash to spend today. A third function of financial markets is to allow individuals and businesses to adjust their risk. For example, MUTUAL FUNDS, such as the Vanguard Index fund, and ETF( educational trust funds) , such as SPDR's or "spiders," allow individuals to spread their risk across a large number of stocks. Financial markets provide other mechanisms for sharing risks. For example, a wheat farmer and a baker may use the COMMODITY MARKETS to reduce their exposure to wheat prices. Financial markets and intermediaries allow investors to turn an investment into cash when needed. For example, the SHARES of public companies are LIQUID because they are traded in huge volumes on the STOCK MARKET .

BANKS are the main providers of payment services by offering checking accounts and electronic transfers. Finally, financial markets provide information. For example, the CFO of a company that is contemplating an issue of debt can look at the yields on existing BONDS to gauge how much interest the company will need to pay.