Define the term financial market and give examples to explain your understanding

Explain the nature of individual and business decisions which drive the demand and supply of financial capital. Specifically. what kinds of factors will shift demand and supply of financial capital?

When mortgages originators sell mortgages to Fannie Mae, Freddie Mac, and investment bankers the originators have no additional liability for possible default by the borrow. How will this arrangement influence the incentive of the originators to scrutinize the creditworthiness of the borrow?

Explain why the existence of financial institutions can allocate financial resources better!

Can a financial market be complete and allow for arbitrage opportunities at the same time?

b) Please explain the four main functions of the financial system.

Can at least six distinct policies for the safety of a financial system be designed and considered for immediate implementation?

Would the interest rate increase be more likely to hurt or help the financial institution’s profitability?

A financial instrument that represents actual ownership in a corporation is a(n)   A. Equity financial asset B. Neither debt nor equity financial asset   C. Debt financial asset   D. Both debt and equity financial asset

Which of the following is TRUE about financial regulations? *A. Financial regulations makes the financial system organized, stable and maintain its integrity.B. Financial regulations are not always required in the financial system because financial institutions are already regulated by designated government agencies.C. Financial who are privately trading inside information are highly acceptable in the financial system.D. Financial regulations are laws that are not necessarily need to be enforced.E. None of the choices.