Financial Markets – Economics Revision – The Tutor Academy

Financial Markets – Economics Revision – The Tutor Academy

Courses Info

Level: AS Levels, A Level, GCSE – Exam Boards: Edexcel, AQA, OCR, WJEC, IB, Eduqas – Economics Revision Notes

Financial Market – a market consisting of buyers and sellers who trade financial instruments such as bond, assets, equity etc

Some of the main Financial Markets

  • Money Markets – the trading of short-term loans such as treasury bills
  • Capital Markets – the trading of financial securities in a stock market or bond market. Encourages private and public sectors to gain finance
  • The Foreign Exchange Market – the trading of currencies
  • The Derivatives Market – trading of financial instruments. E.g futures contracts, and options contracts


Quick Fire Quiz – Knowledge Check

  1. Define a ‘Financial Market’ (2 marks)
  2. Identify and explain the four types of Financial Markets (8 marks)
  3. Identify two examples of a capital market (2 marks)


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