Order Now Order Now
Login / SignUp
Order Now

Home Free Essays

>>

All Subjects

>>

Finance, Accounting And Banking

>>

WEEK 2 DISCUSSION

WEEK 2 DISCUSSION

Download

Week 2 Discussion

[Name of the Writer]

[Name of the Institution]

Week 2 Discussion

Q1

Financial intermediary act as a middle man between two parties during a financial transaction such as pension funds and life insurance companies (Allen & Santomero, 2001). Pension funds are the schemes for the people after retirement which are funded by the government or firm agencies for their workers. Some of the popular examples of pension funds are NSSF and NHIF. Pension funds help countries to achieve their growth and development. These funds also help the country to decrease the poverty rate, poor health care and high rates of unemployment. The life insurance policy is a contract between an individual and an insurance company which claims that insurance company will pay for an individual if an incident occurs in someone's life. People can take life insurance for themselves as well as the other people in their lives such as spouse, parents, children, business partners, etc. Life insurance policy effect positively on the economic growth of the country.

Q2

Money markets are disordered markets where banks, financial institutions, money dealers and brokers trade in a short period of time. A capital market is the type of financial market where financial products like stocks, bonds, debentures are traded for a long period of time (Rose et al., 2009). Money markets are informal as compare to the capital markets which are formal. The basic difference between capital market and money market is that capital markets are known as cash markets in which people can invest and make the profit out while money markers deal with the debt instrument which means you will give loan to Government and companies to meet their short term requirements for the money. Money market includes assets that deal with short borrowing. Capital markets offer high-risk investments while the money market offers safer assets (Rose et al., 2009).

References

Rose, P. S., Marquis, M. H., & Lu, J. (2009). Money and capital markets. China Machine Press.

Allen, F., & Santomero, A. M. (2001). What do financial intermediaries do?. Journal of Banking & Finance, 25(2), 271-294.

More Subjects

Education

(5614)

English

(2294)

Business And Management

(1760)

Healthcare And Nursing

(1684)

Psychology

(929)

History And Anthropology

(743)

Sociology

(572)

IT

(446)

Education

(429)

Finance, Accounting And Banking

(419)

Philosophy

(347)

Political Science

(310)

Law And International Law

(308)

HRM

(300)

Economics

(288)

Biology And Life Sciences

(267)

Literature

(249)

Marketing And PR

(238)

Culture

(140)

Environmental Science

(109)

Geography

(92)

Statistics

(64)

Maths

(53)

International Relations

(44)

Physics

(30)

Chemistry

(25)

Capstone

(8)

Project Management

(8)

Reflective Thinking

(7)

Critical Review

(3)

Linguistics

(3)

Critical Appraisal

(2)

BUS 2090

(2)

English 12 Drama

(1)

Business Information Technology

(1)

Operational Plan

(1)

Corporate Finance

(1)

L2 Photography And Design

(1)

Food Nutrition

(1)

Leadership

(1)

Nursing

(1)

MBA

(1)

Social Enterprise Project

(1)

Government

(1)

Our tools

Essay typer Grammar Checker Plagiarism Checker Citation Generator

Useful Links

Free Essays About Blog

Contact me

info@freeessaywriter.net

If you have any queries please write to us

Join our mailing list

Invalid Email Address!
Thank you for joining our mailing list

Please note that some of the content on our website is generated using AI and it is thoroughly reviewed and verified by our team of experienced editors. The essays and papers we provide are intended for learning purposes only and should not be submitted as original work.

@ All Rights Reserved 2023 info@freeessaywriter.net

Privacy Policy Terms of Service Use Contact
Back to top