1. 4-Financial Markets
1.1. Market
1.1.1. in which financial assets (securities) such as stocks and bonds can be purchased or sold
1.2. Funds
1.2.1. Here when one party purchases financial assets previously held by another party
1.3. Facilitates
1.3.1. The flow of funds and thereby allow financing and investing by households, firms and government agencies
2. 5-Central Banks
2.1. Governmental body
2.1.1. Regulates
2.1.1.1. Financial institutions
2.1.2. Controls
2.1.2.1. The supply of money and credit in the economy
2.1.3. Handles
2.1.3.1. The government's finances
2.1.4. Serves
2.1.4.1. The bank to commercial banks
3. 1-Money
3.1. generally accepted in payment for goods and services or repayment of debt
3.1.1. Primary Functions
3.1.1.1. Medium of exchange
3.1.1.1.1. Measure of value
3.1.1.1.2. Value-Product-Servies
3.1.1.2. Trade-Buyius-Selling
3.1.2. Secondary Functions
3.1.2.1. SDP accepted way to value a debt, thereby allowing goods and services to be acquired now and payment in the future
3.1.2.1.1. Transfer of Value
3.1.3. Contingency Functions
3.1.3.1. Measurement and distribution of National Income
3.1.3.1.1. Equalization of Marginal Utilities
4. 2-Banking and Financial Institutions
4.1. funds-Channel
4.1.1. individuals with surplus funds to those desiring funds but have shortage of it
4.2. Objective-individuals
4.2.1. earn a decent return on their money while at the same time avoiding risk
4.3. Examples
4.3.1. Banks, Insurance Companies, Finance Companies, Investment Banks, Mutual Funds, Brokerage Houses
5. 3-Financial Instruments
5.1. That entitles one party to receive payments and or a share of assets from another party
5.1.1. EX, Loans, Stocks, Bonds