1.) A financial market is a market in which people and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand. Securities include stocks and bonds, and commodities include precious metals or agricultural goods. There are both general markets (where many commodities are traded) and specialized markets (where only one commodity is traded). Markets work by placing many interested buyers and sellers, including households, firms, and government agencies, in one \"place\", thus making it easier for them to find each other. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market economy in contrast either to a command economy or to a non-market economy such as a gift economy. In finance, financial markets facilitate: and are used to match those who want capital to those who have it. 2.) Financial intermediation consists of channeling funds between surplus and deficit agents.[citation needed] Afinancial intermediary is a financial institution that connects surplus and deficit agents. The classic example of a financial intermediary is a bank that consolidates bank deposits and uses the funds to transform them into bankloans.[1] Financial intermediaries provide three major functions: Converting short-term liabilities to long term assets (banks deal with large number of lenders and borrowers, and reconcile their conflicting needs) Converting risky investments into relatively risk-free ones. (lending to multiple borrowers to spread the risk) Matching small deposits with large loans and large deposits with small loans 3.) Government debt (also known as public debt and national debt)[1][2] is the debt owed by acentral government. (In the U.S. and other federal states, \"government debt\" may also refer to the debt of a state or provincial government, municipal or local government.) By contrast, the annual \"government deficit\" refers to the difference between government receipts and spending in a single year, that is, the increase of debt over a particular year. 4.) Risk aversion is a concept in psychology, economics, and finance, based on the behavior of humans (especially consumers and investors) while exposed to uncertainty to attempt to reduce that uncertainty. Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected payoff. For example, a risk-averse investor might choose to put his or her money into a bank account with a low but guaranteed interest rate, rather than into a stock that may have high expected returns, but also involves a chance of losing value. 5.) This means that the price of dollar is increasing day by day 6.) Present value of future sum of money is the money recieved today without interest instead of the money which was supposed to be recieved in future with in.

1. 1.) A financial market is a market in which people and entities can trade financial securities,
commodities, and other fungible items of value at low transaction costs and at prices that reflect
supply and demand. Securities include stocks and bonds, and commodities include precious
metals or agricultural goods.
There are both general markets (where many commodities are traded) and specialized markets
(where only one commodity is traded). Markets work by placing many interested buyers and
sellers, including households, firms, and government agencies, in one "place", thus making it
easier for them to find each other. An economy which relies primarily on interactions between
buyers and sellers to allocate resources is known as a market economy in contrast either to a
command economy or to a non-market economy such as a gift economy.
In finance, financial markets facilitate:
and are used to match those who want capital to those who have it.
2.) Financial intermediation consists of channeling funds between surplus and deficit
agents.[citation needed] Afinancial intermediary is a financial institution that connects surplus
and deficit agents. The classic example of a financial intermediary is a bank that consolidates
bank deposits and uses the funds to transform them into bankloans.[1]
Financial intermediaries provide three major functions:
Converting short-term liabilities to long term assets (banks deal with large number of lenders and
borrowers, and reconcile their conflicting needs)
Converting risky investments into relatively risk-free ones. (lending to multiple borrowers to
spread the risk)
Matching small deposits with large loans and large deposits with small loans
3.)
Government debt (also known as public debt and national debt)[1][2] is the debt owed by
acentral government. (In the U.S. and other federal states, "government debt" may also refer to
the debt of a state or provincial government, municipal or local government.) By contrast, the
annual "government deficit" refers to the difference between government receipts and spending
in a single year, that is, the increase of debt over a particular year.
4.) Risk aversion is a concept in psychology, economics, and finance, based on the behavior of
humans (especially consumers and investors) while exposed to uncertainty to attempt to reduce

2. that uncertainty.
Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather
than another bargain with a more certain, but possibly lower, expected payoff. For example, a
risk-averse investor might choose to put his or her money into a bank account with a low but
guaranteed interest rate, rather than into a stock that may have high expected returns, but also
involves a chance of losing value.
5.) This means that the price of dollar is increasing day by day
6.) Present value of future sum of money is the money recieved today without interest instead of
the money which was supposed to be recieved in future with interest.
Future value of present sum of money is the principal amount plus the interest on it.
Solution
1.) A financial market is a market in which people and entities can trade financial securities,
commodities, and other fungible items of value at low transaction costs and at prices that reflect
supply and demand. Securities include stocks and bonds, and commodities include precious
metals or agricultural goods.
There are both general markets (where many commodities are traded) and specialized markets
(where only one commodity is traded). Markets work by placing many interested buyers and
sellers, including households, firms, and government agencies, in one "place", thus making it
easier for them to find each other. An economy which relies primarily on interactions between
buyers and sellers to allocate resources is known as a market economy in contrast either to a
command economy or to a non-market economy such as a gift economy.
In finance, financial markets facilitate:
and are used to match those who want capital to those who have it.
2.) Financial intermediation consists of channeling funds between surplus and deficit
agents.[citation needed] Afinancial intermediary is a financial institution that connects surplus
and deficit agents. The classic example of a financial intermediary is a bank that consolidates
bank deposits and uses the funds to transform them into bankloans.[1]
Financial intermediaries provide three major functions:
Converting short-term liabilities to long term assets (banks deal with large number of lenders and

3. borrowers, and reconcile their conflicting needs)
Converting risky investments into relatively risk-free ones. (lending to multiple borrowers to
spread the risk)
Matching small deposits with large loans and large deposits with small loans
3.)
Government debt (also known as public debt and national debt)[1][2] is the debt owed by
acentral government. (In the U.S. and other federal states, "government debt" may also refer to
the debt of a state or provincial government, municipal or local government.) By contrast, the
annual "government deficit" refers to the difference between government receipts and spending
in a single year, that is, the increase of debt over a particular year.
4.) Risk aversion is a concept in psychology, economics, and finance, based on the behavior of
humans (especially consumers and investors) while exposed to uncertainty to attempt to reduce
that uncertainty.
Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather
than another bargain with a more certain, but possibly lower, expected payoff. For example, a
risk-averse investor might choose to put his or her money into a bank account with a low but
guaranteed interest rate, rather than into a stock that may have high expected returns, but also
involves a chance of losing value.
5.) This means that the price of dollar is increasing day by day
6.) Present value of future sum of money is the money recieved today without interest instead of
the money which was supposed to be recieved in future with interest.
Future value of present sum of money is the principal amount plus the interest on it.