Financial Markets and Institutions

Financial markets and institutions play a vital role in the economy by facilitating the flow of money and investments. Financial markets, such as stock and bond markets, allow individuals and businesses to buy and sell securities. Financial institutions, like banks and credit unions, provide services such as loans, savings accounts, and investment management. Together, they help allocate resources, manage risks, and promote economic growth by enabling individuals and companies to save, invest, and borrow efficiently. Understanding these elements is essential for making informed financial decisions and grasping how the economy operates.