The surplus and deficit economic agents engage in financial markets transactions to satisfy their needs in the most efficient manner. Explain the needs and motivation of those surplus and deficit economic agents. Discuss why they use the financial markets and how they have conflicting preferences in terms of liquidity, risk and amounts of money. (p. 14-15)

Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments
Section: Chapter Questions
Problem 33RQSC
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(a) The surplus and deficit economic agents engage in financial markets transactions to satisfy their
needs in the most efficient manner. Explain the needs and motivation of those surplus and deficit
economic agents. Discuss why they use the financial markets and how they have conflicting
preferences in terms of liquidity, risk and amounts of money. (p. 14-15)
Transcribed Image Text:(a) The surplus and deficit economic agents engage in financial markets transactions to satisfy their needs in the most efficient manner. Explain the needs and motivation of those surplus and deficit economic agents. Discuss why they use the financial markets and how they have conflicting preferences in terms of liquidity, risk and amounts of money. (p. 14-15)
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