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Business LibreTexts

2: The Financial System

  • Anonymous
  • LibreTexts

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Learning Objectives

By the end of this chapter, students should be able to:

  • Critique cultural stereotypes of financiers.
  • Describe the financial system and the work that it performs.
  • Define asymmetric information and sketch the problems that it causes.
  • List the major types of financial markets and describe what distinguishes them.
  • List the major types of financial instruments or securities and describe what distinguishes them.
  • List the major types of intermediaries and describe what distinguishes them.
  • Describe and explain the most important trade-offs facing investors.
  • Describe and explain borrowers’ major concerns.
  • Explain the functions of financial regulators.

Thumbnail: Image by Pixabay


This page titled 2: The Financial System is shared under a CC BY-NC-SA 3.0 license and was authored, remixed, and/or curated by Anonymous via source content that was edited to the style and standards of the LibreTexts platform.

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