One important part of this quiz is to answer the question, “What is market flux?” This is a very important concept. Market flux describes the overall movement of prices through the marketplace.
Basically, the more durable or stable a commodity or financial product is the less likely it will experience price changes in response to external factors. A commodity such as oil has a high level of stability compared to other commodities that have seen rapid price fluctuations in the past. Therefore, if you look at the long-term price trends for oil, you will see that there are no significant price changes, but instead a gradual trend of increasing prices. This is what is known as market flux.
The question then becomes, why would you want to take my development of financial institutions and markets quiz in the first place? The reason is that you will learn about how to price commodities so you can get the maximum benefit from the current price environment. Market flux is actually a fundamental concept that all investors must understand.
If you take my development of financial institutions and markets quiz for me, you will learn the concept of market flux and how to control it. The main purpose of market flux is to create an opportunity for an investor to make a profit by using his or her capital wisely. However, if this opportunity is allowed to free-fall without any controls, then it becomes a chaotic situation. It is like trying to drive your car on a wet, slippery road. You won’t be able to control the car because it’s hard to focus on the road and the current condition.
When markets become unprofitable, investors will start to suffer and businesses will fail. In fact, there are many instances when small banks were given the chop when economies were suffering because the small banks were not ready to lend money. When taking my development of financial institutions and markets quiz for me, you will learn that the government often steps in to provide capital funds to failing businesses. This was used as a strategy to avoid widespread unemployment and to keep citizens from closing their bank accounts.
For those who know about market flux and how it affects the economy, then they should be able to answer the question for me “How does market flux affect my development of financial institutions and markets?” This question might bring up disturbing thoughts about how the world works today. If you ask me how the world works, I would tell you that it is quite complicated. Complexity always leads to chaos and suffering.
My next article in this series of “take my development of financial institutions and markets quiz for me” articles will examine how the price of oil affects our lives. The price of oil is affected by many forces; all of which have a profound impact on our world. In this article we just focused on one of the forces that are battering the economy right now. We will continue to examine various forces that affect the economy, and how they affect your personal development of financial institutions and markets.
