What are four functions of financial instruments?

What will be an ideal response?

1. They may be used to raise financial capital.
2. They may be used to store value.
3. They may be used to reduce risk.
4. They may be used to speculate.

Economics

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A Monetarist-oriented econometric model is likely to emphasize that monetary policy affects economic activity

A) directly through changes in government spending. B) directly through changes in the money supply. C) indirectly through changes in velocity. D) indirectly through changes in money demand.

Economics

Why does the segmented markets theory suggest think that bonds of different maturities are not perfect substitutes for each other?

What will be an ideal response?

Economics