The functions of the financial market include, and the specific functions of the financial market ar

Updated on Financial 2024-03-26
8 answers
  1. Anonymous users2024-02-07

    1.Accumulation function: The accumulation function of the financial market refers to the ability of the financial market to aggregate many scattered small funds into funds that can be invested in social reproduction. Here, the financial market acts as a "reservoir" of funds.

    The second allocation function: the financial market will transfer resources from inefficient sectors to efficient sectors, so that the economic resources of a society can be allocated to the most efficient or effective uses, so as to achieve the rational allocation and effective use of scarce resources.

    The three major adjustment functions refer to the adjustment function of the financial market to the macroeconomy.

    Four reflection functions: changes in the financial market can reflect the development trend of the economy.

  2. Anonymous users2024-02-06

    Finance refers to economic activities such as the issuance, circulation and withdrawal of currency, the issuance and recovery of loans, the deposit and withdrawal of deposits, and the exchange of foreign exchange. [1]

    Finance (FIN) is the reintegration of existing resources to achieve the equivalent circulation of value and profits. [2] (In technical terms, the process of implementing from savings to investment can be understood in a narrow sense as a dynamic monetary economics in finance.)

    In the era of the gold standard, ** is recognized by the world as the best value representative. Gold, refers to gold, melting, the earliest refers to the melting of solids into liquid, also has the meaning of financing, therefore, finance is to melt separately trading circulation, that is, the circulation of value. Nowadays, it has been largely replaced by paper money, electronic money, etc., which are more easily circulating, but the circulation as value has not changed.

    Without the circulation of value, finance will become a "pool of stagnant water", value cannot be converted, and the economy cannot function. Like many other disciplines, the essence of finance is to study and explore the objective laws of finance, but because the time for human beings to enter the financial society is still very short, so human beings are still in the era of financial famine, and there is still a long way to go before discovering the laws of finance.

    The function of financing funds: It is the basic function of the financial market. First, the financing of both the supply and demand of funds; second, financing between financial institutions; Third, the transfer of funds between regions is conducive to international and regional economic cooperation and exchanges.

    The function of accumulating funds: the shortage of funds in the financial market uses the issuance of ** and bonds to raise funds and engage in production activities; The surplus party of funds submits a part of its savings to the issuer through the purchase of ** and bonds, and engages in investment activities, so that the whole process of capital investment, appreciation and accumulation is completed with financial instruments as the medium.

    Risk-reducing features: The financial markets have a wide range of financial instruments for investors to choose from. Financial instruments are highly risky and the operation of financial markets is based on strict statutory rules.

    All this allows investors to diversify their risks on the one hand, and on the other hand, they can be protected by the law and play a role in reducing risks.

    The function of macroeconomic regulation and control: the financial market is the place where the bank implements monetary policy, and directly regulates the amount of social currency through open market business. The buying, selling, and issuance of financial instruments in the financial market are essentially the redistribution and combination of funds, and changes in interest rates enable the optimal allocation of funds and realize macroeconomic adjustment.

    See Encyclopedia.

  3. Anonymous users2024-02-05

    Financing, discovery, liquidity, risk management, and reduction of search and information costs.

    Financing. The primary function of financial markets is financial integration. The financial market realizes the transfer of monetary funds between suppliers and demanders through the trading of financial assets, and promotes the formation of tangible capital.

    **Found. The interaction between supply and demand in the financial market determines the trading assets, which in turn provides signals for potential market participants to guide funds to be allocated between different financial assets to achieve a balance between supply and demand, which is also called the discovery process.

    Provide liquidity.

    The financial market provides liquidity, which means that it provides investors with a mechanism for financial assets. An important function of the financial market is to provide liquidity, that is, the channels and mechanisms for the realization or redemption of financial assets.

    Risk management. An important function of the financial market is to manage, prevent and resolve the risks contained in the real economy or financial behavior through insurance, hedging transactions, etc. Financial markets have the function of reallocating the risk generated by tangible assets between the supply and demand of funds.

    Reduce search costs and information costs.

    The financial market can reduce the cost of searching and the cost of information. There are explicit costs and implicit costs for searching. The cost of information is the cost associated with evaluating the characteristics of an investment in a financial asset, which is the search for a financial asset with the expected amount and likelihood of generating cash flow.

    The financial market refers to the general term of the trading places such as the operation of monetary capital borrowing, foreign exchange trading, valuable trading, bond and issuance, and other trading venues, and the combination of direct financial market and indirect financial market together constitutes the financial market as a whole. Financial markets can be classified from different perspectives:

    1) According to the financing period, it can be divided into short-term financial market and long-term financial market. The short-term financial market, also known as the money market, includes the bill discount market, the short-term deposit and loan market, the short-term bond market and the lending market between financial institutions. The long-term financial market, also known as the capital market, includes the long-term loan market and the ** market.

    2) According to the trading object, it can be divided into local currency market (including money market and capital market), foreign exchange market, ** market, ** market, etc.

  4. Anonymous users2024-02-04

    (1) Convergence function: The convergence function of the financial market refers to the ability of the financial market to gather a large number of scattered small funds to become funds that can be invested in social reproduction. Here, the financial market acts as a "reservoir" of funds.

    2) Allocation function: The financial market realizes the rational allocation and effective use of scarce resources by transferring resources from inefficient sectors to efficient sectors, so that the economic resources of a society can be most effectively allocated to the most efficient or effective uses.

    3) Adjustment function: refers to the regulatory role of the financial market on the macroeconomy.

    4) Reflection function: Changes in the financial market can reflect the development trend of the economy.

  5. Anonymous users2024-02-03

    The financial markets have the following functions:

    1. Financing function: There are a large number of liquid funds in the financial market, which can gather multi-faceted and multi-channel funds to circulate in the market;

    2. Adjustment function: the financial market can fully mobilize the good operation of the economy, and can realize the reallocation of resources, so as to realize the redistribution of social wealth and the redistribution of risks;

    3. Hedging function: the financial market has the function of risk transfer and risk diversification;

    4. Signal function: The financial market is the barometer of the national economy.

  6. Anonymous users2024-02-02

    According to the geographical scope, it can be divided into: international financial market reform field, domestic financial market; According to the finger posture of the business premises can be divided into: tangible financial market, intangible financial market.

    The functions of the financial market include convergence function, nuclear tease allocation function, adjustment function, and reflection function. The functions of the financial market include financing, regulation, hedging, and signaling. The financial market can quickly and effectively guide the rational flow of funds and improve the efficiency of capital allocation.

  7. Anonymous users2024-02-01

    The main functions of the financial market include convergence function, allocation function, adjustment function and reflection function.

    1. Convergence function:

    The convergence function of the financial market is that the financial market has the ability to gather a large number of scattered small funds and become funds that can be invested in social reproduction, and the financial market plays the role of a "reservoir" of funds.

    2. Configuration function:

    The allocation function is that the financial market transfers resources from inefficient sectors to efficient sectors, so that the economic resources of a society can be most effectively allocated to the most efficient or utilitarian uses, so as to achieve the rational allocation and effective use of scarce resources.

    3. Adjustment function:

    The regulatory function refers to the regulatory effect of the financial market on the macroeconomic sap.

    4. Reaction function:

    The reflection function refers to the fact that changes in the financial market can reflect the development trend of the economy.

    Definition and conditions for the formation of financial markets:

    1. Definition of financial markets:

    The financial market refers to the market formed by the lending of monetary funds, the issuance and trading of financial instruments, and the trading of foreign exchange funds.

    The financial market can be a place with a fixed location, a place with working facilities, or there is no fixed place, but the participating traders use telecommunication means to negotiate and realize transactions. The financial market is an inevitable product of the diversification of credit forms due to the development of the commodity economy.

    The financial market is different from the general commodity and labor market in that the object of transaction is not a commodity with various use values, but a single monetary form of capital goods.

    According to the financing period, it can be divided into short-term financial market and long-term financial market, and according to the transaction object, it can be divided into local currency market (including money market and capital market), foreign exchange market, ** market, ** market, etc.

    Second, the formation conditions of the financial market:

    1. The commodity economy is highly developed, and there is a huge demand and supply of funds in the society.

    2. Have a complete and sound financial institution system.

    3. The tools of financial transactions are abundant and the forms of transactions are diversified.

    4. There is sound financial legislation.

    5. Be able to manage the financial market reasonably and effectively.

  8. Anonymous users2024-01-31

    What state indices are included in the functions of the financial markets?

    A:The convergence function refers to the ability of the financial market to gather a large number of scattered small funds to become funds that can be invested in social reproduction. The allocation function allows the bridge to be the allocation of resources, the redistribution of wealth, and the redistribution of risks.

    The regulatory function refers to the regulatory effect of the financial market on the macroeconomy. Reflection function: The financial market is first and foremost an indicator that reflects the microeconomic operation; The information reflected in the financial market on macroeconomic operations is useful for the formulation and adjustment of macroeconomic policies in the sector.

Related questions
10 answers2024-03-26

1. Finance refers to economic activities such as the issuance, circulation and withdrawal of currency, the issuance and recovery of loans, the deposit and withdrawal of deposits, and the exchange of foreign exchange. >>>More

9 answers2024-03-26

It can be divided into these types: open market, bargaining market, storefront market and fourth market. >>>More

7 answers2024-03-26

"Monetary policy" in the classification and role of economic policy

4 answers2024-03-26

The tide of financial globalization is sweeping the world in an irresistible trend. As a trend, financial globalization has brought vitality to the development of the world economy on the one hand, but on the other hand, it has also posed a severe challenge to the financial security of all countries, especially developing countries. The impact of financial globalization on China's economic and financial development has both positive and negative effects. >>>More

4 answers2024-03-26

Proceeding from the specific situation of our country, China's financial system implements indirect financing as the main and direct financing as the secondary, and implements the host bank system (the bank and the enterprise sign an agreement, and the host bank of the financial system should solve most of the reasonable capital needs of the enterprise in accordance with the credit principle, and at the same time supervise the major financial activities of the enterprise), and the funds required by the enterprise mainly rely on bank loans. The development prospect is to pay equal attention to direct financing and indirect financing. >>>More