How to understand the meaning of finance and financial markets

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.

Finance is the reintegration of existing resources to achieve the equivalent circulation of value and profits. (The technical saying is that the process of implementing from savings to investment can be understood in a narrow sense as a dynamic monetary economics of finance.) ）

Finance is the behavior of people making optimal allocation decisions of resources across periods in an uncertain environment.

2. The financial market refers to the operation of monetary funds.

Borrowing, foreign exchange trading.

A general term for the trading venues such as the issuance of bonds, bonds, etc., and the combination of direct financial markets and indirect financial markets together constitute the financial market as a whole. Financial markets can be classified from different perspectives: (1) According to the financing period, they can be divided into short-term financial markets and long-term financial markets.

The short-term financial market is also known as the money market.

Including bill discount market, short-term deposit and loan market, short-term bond market and lending market between financial institutions, etc.; Long-term financial markets are also known as capital markets.

Including 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.

The official website shall prevail.

1: Correct understanding of financial markets.

In a broad sense, a financial market refers to a place where financial commodities are traded. Including bank credit market, ** market, bill market, ** market, foreign exchange market and so on.

The financial market includes the money market, the capital market, the foreign exchange market and the ** market, and the financial market is generally divided into two categories: the money market and the capital market according to the term of the trading instruments in the financial market.

According to different criteria, financial markets can be divided into several categories.

From the place of the financial market, it can be divided into tangible market and intangible market.

The place of lending or trading composed of financial instruments and supply and demand is represented as a "tangible market", while the market category formed by all supply and demand is an abstract "intangible market". From the direct nature of financial transactions, it can be divided into direct financial market and indirect financial market. Communicate with banks or other financial institutions to complete social supply and demand activities, which is called indirect financial market; There is no need for intermediaries, and a direct financial market is formed by direct contact between the borrower or the transaction to complete the supply and demand activities.

According to the maturity of financial instruments, they can be divided into short-term financial markets and medium- and long-term financial markets.

Transactions with maturities of 1 year and less are done in short-term financial markets; Transactions with a maturity of more than one year are traded in the medium and long-term financial market, which can be divided into domestic financial market and international financial market according to geography. According to the characteristics of the delivery period, it can be divided into spot market and ** market. According to the division of transaction objects, it can be divided into bill market, loan market, bond market, ** market, foreign exchange market, ** market, etc.

The financial market includes the lending and trading of various instruments, and according to the different types and contents of the financial market, the financial market includes three categories:

1) Funding market. There are two main categories: money market and capital market. The money market also includes the bank lending market, the bill discount market, the certificate of deposit market, and the short-term market. The capital market includes the long-term market and the valuable market.

2) Foreign exchange market. There are mainly spot markets and Huaiju markets.

3) Markets. Including spot market, ** market.

The main body of the financial market is capital, and the participants include **, banks, non-bank financial institutions, companies, enterprises, individuals, and various ** associations.

There are many kinds of financial markets: borrowing interest rate, discount rate, exchange rate, stock price, bonds, various options, gold prices, etc., which are spontaneously formed in competition.

Since China's reform and opening up, with the development of commodity economy, the financial market has begun to take shape. Now it includes the interbank lending market, the capital lending market, the treasury bill transfer market, the ** market, the ** market, the foreign exchange market, etc.

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.

The composition of financial markets is complex, and it is a vast system of many different markets. However, the financial market is generally divided into two categories: the money market and the capital market, according to the maturity of the instruments traded in the financial market. The money market is a market that accommodates short-term funds, and the capital market is a market that accommodates long-term funds.

The money market and capital market can be further divided into a number of different sub-markets.

The money market includes the interbank lending market, the repurchase agreement market, the commercial paper market, the bank acceptance bill market, the short-term ** bond market, and the large-denomination negotiable certificate of deposit market. The capital market includes the medium and long-term credit market and the market and the market.

In the following understanding and interpretation of financial markets, the correct one is (d).

a Financial markets are places where financial instruments are traded.

b The financial market is the trading activity of currency and other financial instruments.

c Financial markets are transactions between financial institutions.

d The financial market is the trading activity of both the supply and demand of funds.

Financial markets are not mature enough; Depth and breadth are not enough. The standard of a truly mature financial market is: good companies can raise funds at any time through a wealth of financing products and channels; Long-term investors can get appropriate and stable returns; The market is basically reasonable; Market participants comply with the regulations.

But at present, China's financial market is far from meeting these standards. The RMB "investment pool", which determines the key to RMB internationalization, has not yet been formed; There are different degrees of segmentation in the domestic primary and secondary markets, on-exchange and over-the-counter markets, money markets and capital markets. The interbank lending rate has not yet become the benchmark interest rate for the money market that guides the entire interest rate system, etc.

In short, China has not yet formed a highly open, large-scale, diverse, profitable and safe financial market that meets the requirements of currency internationalization.

Functional understanding of financial markets.

Dispatch Elimination Method Step 1: First of all, I will tell you about the major functions of the financial market. 1. Capital accumulation.

Second, resource allocation.

3. Regulate the economy.

Fourth, reflect the economy.

2. Capital accumulation for this function is to say that the financial market makes a lot of scattered small funds (that is, some spare money or funds in everyone's hands) gathered together, if there is no financial market, everyone's money is idle in their hands, but the reputation is that with this market, many people's money is concentrated together to invest in social reproduction.

3. Resource allocationThe meaning of resource allocation is that everyone's money was not well used in their hands before, but now there is a market, these funds have been used efficiently, and risks have been redistributed.

4. Regulate the economy and the financial market connects the two ends, on one side are investors, and on the other hand are savers. This feature should be the easiest to understand.

5. Fourth, reflect the economy because most of the trading is carried out on the exchange, so through this tangible market to understand, and finally decide to invest, at the same time, this market gives a lot of data and information, through which we can understand the economy. That is, it reflects the economy for us to understand.

Generally refers to all activities related to money circulation and bank credit.

Generally refers to all activities related to money circulation and bank credit. For example, currency issuance, circulation, and withdrawal, deposits, withdrawals, loan issuance, and loan recovery in credit activities, and domestic foreign exchange exchanges all belong to the scope of finance. Hold the bury boy.

Finance is also a general term for monetary financing, which can be summarized as the issuance and withdrawal of currency, the absorption and payment of deposits, and the issuance and issuance of loans.

Institutions engaged in financial activities mainly include banks, trust and investment companies, insurance companies, companies, investments, credit cooperatives, financial companies, financial asset management companies, postal savings institutions, financial leasing companies, gold and silver, foreign exchange exchanges, etc.

Finance is a general term for money circulation and credit activities and related economic activities, and finance in a broad sense refers to all economic activities related to the issuance, custody, exchange, settlement, and financing of credit currency, even including the purchase and sale of gold and silver, and finance in a narrow sense refers to the financing of credit money.

The content of finance can be summarized as the issuance and withdrawal of currency, the absorption and payment of deposits, the issuance and payment of loans, the trading of gold and silver and foreign exchange, the issuance and transfer of valuable money, insurance, trust, domestic and international currency settlement, etc. Institutions engaged in financial activities mainly include banks, trust investment companies, insurance companies, ** companies, as well as credit cooperatives, finance companies, investment trust companies, financial leasing companies, as well as **, gold and silver, foreign exchange exchanges, etc.

Finance is an economic category formed after the emergence of credit money, and it is two different concepts from credit: (1) finance does not include physical lending and refers to the financing of monetary funds (narrow sense of finance), people in addition to borrowing money to finance funds, but also to issue ** way to finance funds. (2) Credit refers to the lending of all currencies, and finance (in the narrow sense) refers to the financing of credit money.

The reason why people want to create a new concept in addition to "credit" to refer specifically to the financing of credit money is to summarize a new economic phenomenon; The two economic processes of credit and money circulation are closely integrated. The most indicative of the characteristics of finance is the bank credit, which can create and subtract money, and bank credit is considered to be the core of finance.

Finance is a discipline that is a division of economics and the study of financial integration. The traditional research field of finance has two directions: the theory of financial market operation at the macro level and the theory of corporate investment at the micro level.

Characteristics of Finance:

1.Finance is a credit transaction.

1) Credit. Credit in economics is a form of commodity trading that corresponds to spot trading (transactions settled instantly).

Credit is the foundation of finance, and finance can best reflect the principles and characteristics of credit. In a developed commodity economy, credit has become integrated with the circulation of money.

2) The proper characteristics of credit transactions.

a.One party transfers ownership of commodities (including currency) to the other party on the condition that the other party repays them, or part of the power;

b.There is a certain time lag between the prior transfer of ownership of the commodity or its power by one party and the relative repayment of the other party;

c.The party that delivers first needs to bear a certain amount of credit risk, and the occurrence of credit transactions is based on giving trust to the other party.

2.In principle, finance must be aimed at money.

3.Financial transactions can take place between various economic components. Hello.