The relationship of this to individual and aggregate saving

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What are the economic functions that financial intermediaries and markets perform that benefit society? In your answer, discuss the relationships of financial intermediaries and financial markets to the savings investment process within an economy and to each other. In addition, provide in your discussion an analysis of the differences in preferences among economic agents as an explanation for the wide variety of primary and secondary securities found in financial markets and the reasons for federal and state regulation of depository institutions and other financial intermediaries. In this regard, consider what role asset-backed securities, securitization and the secondary markets for these instruments play in the efficiency of the financial intermediation process. For example, the mortgage-backed securities secondary markets’ development and the funds flows to finance home ownership. In this discussion consider the role of interest rates in determining the demand for current and future consumption and the relationship of this to individual and aggregate saving.

Reference no: EM131055133

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