文档介绍:FinancialMarketsChapter1FunctionsofFinancialMarketsChapter2MoneyMarketsChapter3CapitalMarketsChapter4ForeignExchangeMarketsChapteronefunctionsoffinancialmarketsWhatisfinance?Theactofprovidingmoney,,[inturn,pensation(interestordividends)]Facilitatetheraisingofcapital(inthecapitalmarket),thetransferofrisk(inthederivativemarket),andinternationaltrade(intheforeignexchangemarket)ChapterTwoMoneyMarketsDefinitionofmoneymarketMoneymarket:isafinancialmarketinwhichonlyshort-termdebtinstrument(maturityoflessoneyear)aretraded(notes,bonds,certificates,mortgages,leases).CharacteristicsofmoneymarketinstrumentsSoldinlargedenominationThefinancialinstrumentsmatureinoneyear(mostinstrumentmatureinlessthan120days);havelowdefaultrisk;Typesofinstrumentsinthemoneymarket:(T-bills)-(abearerinstrument)’(repurchaseagreement)-panieswithatemporarycashshortfalltoborrowfundsonashort-termbasis