Financial Markets and Instruments

Abstract

The Chapter begins by introducing the concept of time value of money, fixed income instruments like savings accounts, certificates of deposit and bonds. It then moves on to cover a number of topics, from common stocks to various types of funds like common stock funds, balanced funds and exchange traded funds. Commodities, real estate and some other instruments for investing are mentioned. Fundamental concepts relating to risk, return and utility are also reviewed in this Chapter. Finally, the role and importance of the banks in economies are presented.