博迪《金融学》课后习题答案-英文ch2_IM_1E.docVIP

Finance Instructor’s Manual Chapter 2 Page PAGE30 PAGE  CHAPTER 2 THE FINANCIAL SYSTEM Objectives To provide a conceptual framework for understanding how the financial system works and how it changes over time. To understand the meaning and determinants of rates of return on different classes of assets. Outline 2.1 What Is the Financial System? 2.2 The Flow of Funds 2.3 The Functional Perspective 2.4 Financial Innovation and the “Invisible Hand” 2.5 Financial Markets 2.6 Financial Market Rates 2.7 Financial Intermediaries 2.8 Financial Infrastructure and Regulation 2.9 Governmental and Quasi-Governmental Organizations Summarytc “Summary” The financial system is the set of markets and intermediaries used by households, firms, and governments to implement their financial decisions. It includes the markets for stocks, bonds, and other securities, as well as financial intermediaries such as banks and insurance companies. Funds flow through the financial system from entities that have a surplus of funds to those that have a deficit. Often these fund flows take place through a financial intermediary. There are six core functions performed by the financial system: To provide ways to transfer economic resources through time, across borders, and among industries. To provide ways of managing risk. To provide ways of clearing and settling payments to facilitate trade. To provide a mechanism for the pooling of resources and for the subdividing of shares in various enterprises. To provide price information to help coordinate decentralized decision-making in various sectors of the economy. To provide ways of dealing with the incentive problems created when one party to a transaction has information that the other party does not or when one party acts as agent for another. The fundamental economic force behind financial innovation is competition, which generally leads to improvements in the way financial functions are performed. The basic types of financial ass