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Explain the difference between financial market and financial intermediary? Note; by which one saver directly and...

Explain the difference between financial market and financial intermediary?
Note; by which one saver directly and indirctly bonds
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Answer #1

Financial market is defined as channels / places , where financial activities occur, that is buying & selling of bonds, stocks etc.

It includes everything related to stock market, commodity market, curency market.

Like, new york stock exchange.

Financial market involves direct / indirect finance , brokers , investors

Types of financial markets ;

Capital market : buying/selling of long term financial assets

Money market : for short term financial assets

Primary/ secondary markets .

Financial intermediaries are just one segment of Financial market .

It provides steady & relatively inexpensive flow of funds from savers to investors .

It includes depository institutions ( banks, saving & loan association,) insurance company, pension funds ,

Thus their primary function is to pool funds of market participants ( savers) & use these to provide loans to borrowers

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