5. Money, foreign exchange, finance.

Whwhat is Finance?

It is the way money is managed, there are personal finances although when talking about finances it is generally the government that moves this part.

2.      What is Financial System? 

It is the system in which the different financial institutions are involved, and the markets participate

3.      What are the functions of a financial system? 

·         Provide payment systems

·         Provide mechanisms in which the different savings funds can be taken

·         It provides the financial capital to offer more long-term capital for government stays.

·         Provides information on costs and prices in the market.

4.      How are the main types of financial institutions categorized? Describe each one.

·         Intermediaries Vs. Non-Intermediaries: Intermediaries basically intervene between savers and investors, lend money, and mobilize savings. non-intermediaries do business, 7but their money does not come from savers.

·         Central Banks: Its responsibility is to monitor and manage the other banks.

·         Credit Unions: They serve a specific group demographically by their type of membership, as an example we could say the teachers.

·         Investment Banks and Companies: In investment banks you can not make deposits, so they help other organizations, people and even governments to obtain acquisitions.

·         Brokerage Firms: Stock companies allow other types of buyers to acquire certain goods, and these can be offered and bought among investors that are available.

 

5.      Which are the main classes of financial instruments issued in a financial system? Describe

Cash Instruments: These are derivations of an underlying, for example stocks, based on future predictions.

Derivative Instruments: They are financial instruments with a value directly influenced by the condition of the markets.

Foreign Exchange Instruments: These financial instruments are represented in foreign markets and consist mainly of currency contracts and derivatives.

6.      What does the “flow of funds” refer to? them in detail. 

It is a measure of money that enters and leaves an economy, divide your money into 3 sections: operations, investments, and financing. In all of them you will find the exit and entry of cash.

7.      Write a final reflection on the topic, mentioning what were the most important aspects you learned.

Most of the terminology I could not understand 100% although the speaker clarified each term, it was still somewhat confusing for me to process certain information, in relation to past activities in terms of communication, technology did not facilitate receiving the message that in issuer wanted.