Question 2 (25%)

You have been asked to explain the following concepts presented in the diagram below:

Financial markets, institutions and the circle of money Financial markets consist of institutions that facilitate the transfer of savings from individuals and firms with excess cash to borrowers who have less cash than they need. S Financing The financial market repaid . Financial intermediaries: - Commercial banks - Building societies HOPTOENT - Credit unions - Money market corporations Financial market (institutions) - Finance companies - Insurance companies Saver - Superannuateon funds (investor) - Managed funds $ Financing curbange cash for . Securities markets: obtained financial - Debt market - Stock market