Your niece just started her college career with a major in economics. She is curious as to the interrelationship between the success of an economy and the financial markets, concepts, and financial institutions. Accordingly, she has developed a list of questions addressing these issues and has asked that you explain the ideas.
- What are the financial markets and what purposes do they serve?
- What are financial intermediaries? How do these intermediaries function in the economy?
- What is a federal government budget deficit? What is the national debt? How does a budget deficit affect the economy?
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