Description
Hello I need help with following attachments.
-One is cash flow problems that must be completed in a excel spreadsheet
-The other is a Financial Market & institutions Report for Hawaii must be 1000 words
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Explanation & Answer
Running Head: FINANCIAL INSTITUTIONS AND MARKETS
Financial Institutions and Markets
Name
Instructor
Institutional Affiliation
Date
1
FINANCIAL INSTITUTIONS AND MARKETS
2
Financial institutions basically are financial establishments that perform the function of
conducting financial transactions such as issuing of loans, investments and acceptance of
deposits (Madura, 2008). In the economic environment financial institutions plays a very
important role since they ensure economic liquidity of any given nation. No particular country
can thrive without such establishments because they determine economic development. In a
nutshell financial institutions are the mainstream of an economy. Financial institutions include
commercial banks, credit unions, stock brokers, building societies and management firms. On the
other hand, financial markets are organized markets where a trader of financial securities carries
out trade in financial securities such as stocks, bonds and other precious commodities such as
gold and agricultural products.
Financial institutions perform a range function in economic development. Below is the
discussion of the role that financial institutions play in an economy.
Accepting of deposits
Financial institutions basically accept deposits from the customers who are members of the
public and other corporations. This is the primary role of financial institutions since they operate
in the public arena; they ensure that the public money is safe by offering safe custody of such
finances.
Providing commercial loans
FINANCIAL INSTITUTIONS AND MARKETS
3
Financial institutions basically offer commercial loans to individuals, groups and companies for
economic development. By granting loans to the public, they create economic liquidity and allow
high level of economic activity since they make availability of money within the economy.
Provision of inv...