Money and Credit Allocation in the U.S Financial Markets (Essay Sample)

Money and Credit Allocation in the U.S Financial Markets
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Money and Credit Allocation in the U.S Financial Markets
How Money and Credit Are Allocated in Financial Markets in the United States Economy
Financial markets are imperatives in a country’s economic development and growth because of multiple reasons that are embedded on the continual capital re-allocation in the economy. They fundamentally facilitate a smooth flow of investment activities and savings in an economy. In effect, they create capital accumulation and enable efficient production of different goods and services. Financial markets require a combination of systems and institutions that have the futuristic objective of increasing profitability and expanding beyond average growth. The markets, therefore, can achieve it through the introduction of many financial instruments or products that attract investors who are mainly the lenders and borrowers in an economy (Alfaro, Chanda, Kalemli-Ozcan & Sayek, 2004).