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The forward rate is the agreed-upon rate for a future transaction that is set today, while the future rate is the expected rate for a future transaction that is not yet agreed upon.

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7mo ago

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Why do you think financial markets are required?

They act as a link between renders and borrowers


What are the key differences between Euribor and Libor, and how do they impact the financial markets?

Euribor and Libor are both benchmark interest rates used in the financial markets, but they are based on different currencies. Euribor is the Euro Interbank Offered Rate, while Libor is the London Interbank Offered Rate. The key difference is that Euribor is based on Eurozone banks, while Libor is based on banks in London. These rates impact the financial markets by influencing the cost of borrowing for banks and businesses, which in turn affects interest rates on loans and investments. Changes in these rates can impact global financial markets and the economy as a whole.


What is the difference between regulated and unregulated market?

Regulated markets are controlled by a regulatory force, such as a government, or crime organization through taxes, tariffs, laws, and rackets. Unregulated markets are not controlled or governed.


What is brokers and securities dealers?

Brokers and securities dealers are key participants in financial markets. Brokers act as intermediaries who facilitate transactions between buyers and sellers of securities, earning a commission for their services. In contrast, securities dealers buy and sell securities for their own accounts, profiting from the difference between the buying and selling prices. Both play crucial roles in ensuring liquidity and efficiency in the trading of financial instruments.


Why are policy makers more concerned about the financial market than other markets such as the automobile or computer markets?

A working financial market is essential for all other sectors of the economy to function.

Related Questions

What is the difference between the capital markets and the financial markets?

Capital markets buy and sell long term debt while financial markets trade securities that have lower values. Most capital markets can only be accessed by people in the financial sector.


What is the difference between a labor market and a factory market?

The primary difference between product markets and factor markets is that factors of production like labor and capital are part of factor markets and product markets are markets for goods.


What is the meaning of bid-ask spread in the context of financial markets?

The bid-ask spread in financial markets refers to the difference between the highest price a buyer is willing to pay for a security (bid) and the lowest price a seller is willing to accept (ask). It represents the cost of trading and the liquidity of the market.


What is the Importance of financial markets in financial system?

Financial markets are important because they allow economic growth by offering liquidity, and this liquidity allows markets to get bigger because it allows demand to be expressed very fluidly and without a very large spread (difference between bid and ask prices). Without this liquidity markets would be at a near stand still and economic growth would be very slow as demand would take a very long time to be expressed.


What is the difference between old markets and new markets?

I think like that the newer markets are just a wide variety than the other


Why do you think financial markets are required?

They act as a link between renders and borrowers


When was Forward Markets Commission - India - created?

Forward Markets Commission - India - was created in 1953.


Is there a difference between Swift and DTCC?

Yes, there is a difference between SWIFT and DTCC. SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a messaging network that facilitates secure financial transactions and communications between banks and financial institutions globally. In contrast, DTCC (Depository Trust & Clearing Corporation) is a post-trade financial services company that provides clearing, settlement, and information services for various financial transactions, primarily in the U.S. markets. While SWIFT focuses on communication, DTCC handles the processing and settlement of trades.


Difference between primary n secondary markets?

the difference is that primary markets are really fat. the secondary market is a skinny kid that doesnt eat candy


What is the relationship between price and yield in financial markets?

In financial markets, there is an inverse relationship between price and yield. When the price of a financial asset goes up, its yield goes down, and vice versa. This relationship is important for investors to consider when making decisions about buying or selling securities.


How Importance of financial institutions and markets?

financial institution and financial markets are playing important roles in business inviornent


In general the financial markets provide a vehicle for?

in general the financial markets provide a vehicle for