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What financial markets do

What financial markets do

Flow diagram showing households and firms as savers, financial markets and intermediaries in the centre, and businesses, households and government as borrowers, with payments, forward markets and equity finance labelled

Financial markets bring together buyers and sellers of financial assets such as deposits, loans, bonds and shares. Their core job is to move funds from savers, who have surplus money now, to households, firms or governments that want to spend or invest now.

4.4.1 Role of financial markets Lesson

  1. A Level
  2. /Economics
  3. /4.4.1 Role of financial markets