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Stocks, mortgages and insurance policies are examples of financial instruments. The third part, financial markets allow us to buy and sell financial instruments quickly and cheaply. The New York Stock Exchange is an example of a financial market. The fourth part, financial institutions provide a myriad of services, including access to financial markets and collection of information about prospective borrowers to ensure they are creditworthy. Banks securities firms, and insurance companies are examples of financial institutions finally the fifth part of the system, the central banks monitor and stabilize the economy, and the Federal Reserve System is the central bank of the United States...
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