5- MONEY, FOREIGN EXCHANGE, FINANCE.

 

Student’s Name: Christofer Alejandro Rodriguez Ortega

Nua: 116189

 

After watching the video, answer the following questions in complete sentences.

 

 

What is Finance?

 It is a branch that studies the exchange of resources between people, organizations and what risks they may have

 

 

What is Financial System?

It is a set of institutions, markets where lenders, borrowers, investors are involved where the savings of lenders are channeled and gives security to the movement of money

 

 

What are the functions of a financial system?

 Facilitates risk control, transparency in the operations of institutions operating within the financial system, facilitates a payment system, encourages investment.

 

 

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

 Banking and non-banking: the banking system, makes loans to large companies while the non-bank, lends to small companies

 

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

 derivative instruments: their value is based on the price of another asset, interest rates etc. income

values: shares of companies

investors: several investors group their resources either in a company or with a specialist

 

What are the distinctions between various types of financial markets according to their function? Explain them.

 money and capital market: based on differences in the maturity period of financial assets

primary and secondary market: within the primary are the new titles of financial credit and the secondary are those that are in force

 

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

 

 

reports the movement of money, variations and financial assets that can be made monthly

 

 

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

I learned in a general way and also specifies how the financial system is managed, I really like the economy and also the exchange, then I think dedicate myself in the future to the financial