Financial market refers to an institution providing an avenue for trading and exchange

of different types of financial holding which includes stocks, bonds, shares, securities,
and etc. This institution plays a pivotal role in performing a smooth-sailing transaction.
Mortgage is a type of loan that can be used to buy home and/or any other form of real
estate agreeing to pay back in due time by a series of regular payments.
Money markets is a form of financial market in which short-term assets are negotiated
between institutions and traders. It’s the marketplace wherein highly liquid financial
instruments are traded.
Liquidity pertains to the ability to convert assets to cash. It’s the level of ease wherein
assets and/or interest can be sold without affecting its price.

Derivative securities are financial contracts whose values are derived from the values
of underlying financial assets. It helps as well reduce the exposure to risk.

Loanable funds theory describes the ideal interest rate for loans as the point in
which the supply of loanable funds intersects with the demand for loanable funds.

Term structure of interest rates is the variation of the yield of bonds with similar risk
profiles with the terms of those bonds.

Credit rating is an opinion of a certain credit agency in regards to the willingness of an

entity to fulfill its financial obligations in the entirety within the settled time frame for due
dates.

Credit risk measures the ability of the borrower to refinance or repay a particular loan
and the charged interests on that particular loan.

Debt security refers to financial instrument which contains by the issuer or company to
pay the holder an amount defined on or by a set and specified date. The holder may sell
the security to someone else who then now gains the right to receive and interests from
the issuer or the company.