Moving Funds Through the Financial System. Purpose of the Financial System. Transfer funds from savers to borrowers. Savers are suppliers of funds, Borrowers are demanders of funds. Financial markets issue claims on borrowers. Financial intermediaries act as go-betweens.
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a. Debt (Requires borrower to pay principal (amount of loan)+ interest. Types?
b. Equity (Allows for variable payments to be made, and lender gets to own share of profits and assets of firm)
Which do you think accounts for larger amount of funds raised?
Beginning December 11, 2001 the Series EE savings bonds you buy will be inscribed with the special legend "Patriot Bond." These specially designated Series EE Patriot Bonds offer Americans one more way to express their support for our Nation's anti-terrorism efforts. Please follow the links below for more information about the Patriot Bond.
Example of Government issued debt
An innovator in the financial market as well.