credit markets

Credit markets are financial systems where borrowers obtain funds from lenders. They include various instruments like loans, bonds, and mortgages. Borrowers, such as individuals or businesses, seek credit to finance purchases or investments, while lenders, such as banks and investors, provide funds with the expectation of repayment with interest. The credit market facilitates the flow of money in the economy, influencing interest rates and investment. A healthy credit market supports growth by allowing for capital allocation, while disruptions can lead to economic challenges. Understanding credit markets is essential for grasping how financial systems operate.