Page 4 - FINAL CFA SLIDES DECEMBER 2018 DAY 13

Session Unit 13:
44. Market Structure & organisation

LOS 44.a: Explain the main functions of the financial system., p.189

1. Established a market to:
• Save and borrow money,

• raise equity capital,
• manage risks, tanties
• Establish asset values to trade assets currently or in the future;

2. Determine the returns (i.e., interest rates) that equate the total supply of savings with the
total demand for borrowing;

1. Allocate capital to its most efficient uses.