Advanced Financial Literacy Unit #1.1 Homework Flashcard

Front

Set of institutions, such as banks, insurance companies, and stock exchanges, that permit the exchange of funds.

Back

Financial systems

Front

Individuals or groups with capital to invest, who expect to earn returns.

Back

Investors

Front

“Middlemen” who facilitate financial activity.

Back

Intermediary

Front

Entrepreneurs and/or project owners who have ideas but need capital to produce future cash flows.

Back

Producers

Front

The market for raising capital, where money flows to the producer from the investor.

Back

Primary market

Front

Financial intermediaries who accept deposits from savers, and use these deposits to make loans to businesses and individuals.

Back

Commercial banks

Front

____________________ serve mainly as a facilitator and the provider and user of capital face each other.

Back

Investment banks

Front

Which response below would NOT be a financial systems participant?
Options: producer, investor, ratings agency, intermediary

Back

ratings agency