Page 6 - FINAL CFA I SLIDES JUNE 2019 DAY 12

LOS 44.a: Explain the main functions Session Unit 13:

of the financial system., p.189
44. Market Structure & organisation

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

• raise equity capital,
• manage risks,

• 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
tanties
savings with the total demand for borrowing;

1. Allocate capital to its most efficient uses.