Browsing: financial intermediation

• Financial markets provide liquidity essential for bolstering economic growth and stability.
  While well-regulated financial systems are essential for macroeconomic stability
• Good financial markets are critical in channeling resources into productive investment and fostering growth.
• Strengthening judicial systems and enforcing regulations are thus central to deepening financial systems. Protecting creditors‘ and borrowers‘ rights, enforcing contracts, and establishing transparent information-sharing mechanisms are also prerequisites for financial deepening.

Financial markets play a vital role in enhancing the smooth operation of economies by allocating resources and creating liquidity for businesses and entrepreneurs. The markets make it easy for investors and traders to trade their holdings. They additionally create security products that provide returns for investors/lenders and make these funds available to those needing extra financing.

Stock market, bond market, forex, commodities, and the real estate market, just to name a few, are examples of commodities in financial markets. Moreover, they can be divided into …