ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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____ one major market namely Money & Foreign Exchange Market.
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____ two major markets namely Money & Foreign Exchange Market, and Capital Market.
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____ three major markets namely Money & Foreign Exchange Market, Capital Market, and Derivatives Market.
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____ four major markets namely Money & Foreign Exchange Market, Capital Market, Derivatives Market, and Offshore Market.
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Detailed explanation-1: -The 4 types of financial markets are currency markets, money markets, derivative markets, and capital markets. Capital markets are used to sell equities (stocks), debt securities.
Detailed explanation-2: -The Malaysian Money Market comprises conventional and Islamic markets. The central bank conducts daily monetary operations, to achieve the desired liquidity in the banking system. Participation in the ringgit interbank money market is through approved interbank institutions.
Detailed explanation-3: -Financial markets refer broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others. Financial markets are vital to the smooth operation of capitalist economies.
Detailed explanation-4: -The Malaysian financial system is structured into two major categories, Financial Institutions and Financial Market. The Financial Institutions comprise Banking System and Non-bank Financial Intermediaries.