Islamic and Conventional Financial Markets and Institutions

These flashcards cover key concepts related to financial markets and institutions, including definitions and roles of various financial components.

Financial Intermediation

The process that channels funds from savers to investors, facilitating long-term investments.

Debt Markets

Markets where governments, corporations, and individuals borrow to finance activities through the issuance of bonds.

Interest Rate

The cost of borrowing, usually expressed as a percentage.

Stock Market

A market where ownership shares of companies are bought and sold, allowing companies to raise money.

Financial Institutions

Organizations that mediate the flow of funds between savers and borrowers and improve economic efficiency.

Bond Market

A segment of the financial market where debt securities, such as bonds, are issued and traded.

Foreign Exchange Market

A global market for trading national currencies against one another.

Mortgage Rates

Interest rates charged on loans used to purchase real estate.

Capital Flows

The movement of money for investment, trade, or business production across borders.

Economic Efficiency

The optimal allocation of resources to maximize output and wealth.