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ncialservice firms. ? Part Five turns to the role of governments – federal, state, and local – within the global financial system. ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 26 The Plan of This Book ? Part Six focuses on the financial activities of nonfinancial business firms and consumers. ? Part Seven is devoted to the international financial system and future trends in global finance. ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 27 Money and Capital Markets in Cyberspace ? For more on the nature of the financial system, see ? Help on planning for savings and investments is available at ? How much wealth does the . really have and how unevenly is it distributed? See and ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 28 Money and Capital Markets in Cyberspace ? For a discussion of the important roles performed by capital markets within the financial system, see ? For further discussion on the low . savings rate, see ? For a discussion of the concept of arbitrage, see ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 29 Money and Capital Markets in Cyberspace ? Some experts see the Inter as a nearly perfect market. See, for example, ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 30 Chapter Review ? Introduction ? The Global Economy and the Financial System ?Flows within the Global Economic System ?The Role of Markets in the Global Economic System ?Types of Markets ?The Financial Markets and the Financial System: Channel for Savings and Investment ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 31 Chapter Review ? Functions Performed by the Global Financial System and the Financial Markets ?Savings Function ?Wealth Function ?Liquidity Function ?Credit Function ?Payments Function ?Risk Protection Function ?Policy Function ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 32 Chapter Review ? Types of Financial Markets Within the Global Financial System ?The Money Market versus the Capital Market ?Divisions of the Money and Capital Markets ?Open versus Negotiated Markets ?Primary versus Secondary Markets ?Spot versus Futures, Forward, and Option Markets ?Factors Tying All Financial Markets Together ?The Dynamic Financial System ? 2022 by The McGrawHill Companies, Inc. All rights reserved. McGraw Hill / Irwin 1 33 Chapter Review ? The Plan of This Book