1. Financial markets help channel funds from savers to investors, promoting economic efficiency.
2. Financial intermediaries like banks are not considered part of financial institutions.
3. Central banks are responsible for stabilizing the economy and monitoring financial institutions.
4. The core principle of "Time has value" means that a dollar today is worth less than a dollar in the future.
5. Financial instruments allow individuals to transfer resources and manage risk effectively.
6. Regulatory agencies ensure oversight of financial systems and prevent market failures.
7. "Risk requires compensation" means that higher risk investments must offer higher returns.
8. Financial markets primarily determine prices and allocate resources efficiently.
9. Stability in the financial system has little impact on societal welfare.
10. Information plays a minimal role in financial decision-making.