Protect the benefits and rights of the investors

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Financial institutions play an important role in the financial markets as a middleman to channel the liquidity among the investors who have surplus and deficit of funds to supply and demand, respectively. Nowadays, financial technology makes the liquidity transfers much easier as compared to the past.

Required:

(a) List and discuss three typical problems observed and existed in the financial markets in terms of supply and demand for liquidity, and how the financial institutions can mitigate the respective problems.

(b) Discuss the specific roles and functions of any four types of financial institutions except for central bank.

(c) Evaluate the functions of the central bank? How the central bank could protect the benefits and rights of the investors in the financial markets.

d) Critically evaluate the risks which the financial instutions expose to, and highlight one risk which you think is important today.

Reference no: EM133121788

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