Research how financial markets and institutions influence the US and global economies.

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Both the US economy and the global economy are influenced by financial markets. This group provides services to investors, banks, governments and businesses. They help them create capital, distribute resources and facilitate global trade. These financial markets are a source of liquidity that allows traders to move quickly between positions and to exit them efficiently. Investment banks and other institutions are crucial in the facilitation of transactions between securities- or debt instrument (e.g. bonds, stocks) issuers on the one hand, and buyers who are interested in these securities on the opposite side.

There are four major financial markets/institutions: stocks/equities (Stocks/Equities), government securities (Treasury Bills), foreign exchange (Forex) and mortgages. Commercial banks offer mortgages, which allow people or businesses to borrow money at fixed interest rates from lenders. Stocks/equities represent ownership rights in companies that are listed on stock exchanges. These shares often pay regular dividends, while the prices of these stocks/equities fluctuate according to supply-demand dynamics and other factors. Treasury bills, also known as government securities or Treasury bills, are debt obligations that a sovereign country issues. These can be traded to make investments or used for hedging purposes depending on economic conditions. The final type of financial markets is foreign exchange. It is an exclusive market that is focused on the exchanging of currencies into another currency. This can be done primarily to speculate against fluctuations in interest rates, but it also serves as a payment method when dealing with cross-border transactions.

Mortgages have significant influence over both local communities within America as well as countries abroad due to their ability to facilitate residential housing purchases domestically as well economically attractive investment opportunities overseas for potential buyers looking outside their own backyard for favorable returns – especially during times when US real estate prices appear too high compared with similar properties offered elsewhere like Europe or Latin America etc.. Stocks/Equities meanwhile explicitly serve domestic needs since these assets represent ownership rights natively incorporated via laws found within each jurisdiction’s governing documents pertaining specifically towards how publically traded companies must disclose information publicly so outsiders may evaluate accurately how strong underlying fundamentals are before investing – all while providing dividends advantageous enough alongside good corporate governance wherever possible so shareholders align properly with management goals directly benefiting those residing locally most via positive economic spillovers likewise experienced world wide through corporate earnings accruing taxes making available more government funding spent back into its citizens consistently reinforcing how strong home grown businesses positively correlate against societal progress universally not just nationally.(Kubsch etal 2020))(Duffy 2016)(Levitt 2019)).

The government securities offer treasury department flexible solutions to address fiscal deficits, whether by increasing borrowing Social Security payments transfer payments or pensions. These are the risks and rewards associated with taking part in foreign currency trading.

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