FINANCE

[Name of the Institute]

FINANCE

Question # 1

Financial Market and the Economic

There is an important role that is being played by the financial market in the contribution of the healthy and the efficiency of an economy. There is a positive relationship between the economy and the development of the financial market and the economic growth. Specifically, the researcher have provided the additional findings on the growth of the finance nexus and have also offered the relationship that was casual (Bernanke, 2010) for instance the level of the firm, the studies of the cross countries that all have suggested the financial development level exerting the positive impact on the growth of the economy.

Financial market helps the economy for the saving flow and also the investments in the economy in the ways that make ease for facilitating the accumulation of the capital and the production of the goods and the services. If the combination of the institution and the financial markets along with the varied collection of the products that are the financial products and also the instruments that can suits the needs of the borrower and also the lender and hence have a direct impact on the economy flow.

Financial Market and the Business

Financial market have direct impact on the businesses as normally all the businesses do save the money in the financial institution and also in terms of getting funds or borrowing, businesses take loans or the funds from the financial institution which ultimately effect the financial institution. Hence the financial institution plays an important role in the development of the economy as well as the businesses.

Financial Institution and the Individual

Individuals also save money in the bank and hence the financial institution also plays an important role for an individual and also (Ma. K,2012). when the individual needs money in the times of the ...