* Three dimensions

of financial system
Financial Institutions

*Are regulated to control the

supply of money in the market
and protect consumers.

*Working with financial institutions

is to prevent and detect criminal
money flows on the internet.
 *Financial Market
*Is a place where firms and individuals
enter into contracts to sell or buy a
specific product such as a stock, bond or
futures contract.

*Buyers- Seek to buy at the lowest available

price
*Sellers- Seek to sell at the highest available
price
*Lenders and borrowers
*Lenders- These are the people who are
willing to lend their money for a promise rate
of return.

*Borrowers- These are companies and

government bodies who are looking for money to
fund their projects to operate and grow.
*Financial Instrument
*Is any contract that gives rise to
a financial asset of one entity
and a financial liability or equity
instrument of another entity.
*Examples:
* Cash at bank
* Bank overdrafts
* Term deposits
* Investments
* Options
* Foreign currency swaps
* Forward foreign exchange agreements