14.1
Features of Financial Markets
At one level of abstraction economics is concerned with commodities, money,
and securities. Goods such as rice and cars, services such as transportation and
labour, and assets such as land and machines are commodities. Money, such
as dollars and rupees, is not a commodity, but a means of exchange of com-
modities. Securities, such as bonds and stocks, are neither commodities nor
money but contracts for the exchange of commodities or money.
Financial economics is a specialized branch of economics because secu-
rities or financial products are different from commodities and money—
FINANCIAL
PRODUCTS ...
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