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- Distinguish the following financial markets. Provide examples of the type and/or nature of the securities traded in the market. Debt v/s Equity Market OTC v/s Organised ExchangeDistinguish the following financial markets. Provide examples of the type and/or nature of the securities traded in the market. OTC v/s Organised ExchangeWhat is the difference (financial instruments traded) between Money Market, Bond Market, Equity Market, Foreign Exchange Market and Derivatives Market?
- 1. What is the money market (include in your answer the characteristics of the money market and the types of securities that are traded in the money market)?Which of the following is not a main core function of the financial system?a. Provide a payments system for the exchange of goods and services.b. Provide mechanisms to separate funds for smaller-scale investmentc. Provide the channels to transfer funds and economic resources across industriesd. Provide ways to manage uncertainty and mitigate risk According to the market segmentation theory of the term structure,a. the interest rate for bonds of one maturity is determined by the supply and demand for bonds of that maturity.b. bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time.c. investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope downward.d. only A and B of the above. Costs associated with the correspondent bank process include:a. Interestb. Currency conversion spreadc. Reputation costsd. Payroll costsWhich of the following is the basis for fixing the price of securities in the financial market? a. Government b. Demand and Supply in the Market c. Seller of the Financial Instrument d. The issuer of the Instruments
- Explain the roll of debt and equity markets in the economy. How do they interact with both Primary and Secondary Markets? What roles do debt and equity markets and primary and secondary markets play in the “flow of funds?”Which of the following deals with instrument relating to long-term debt and equity? Select one: A. Foreign Exchange Market B. Money Market C. Capital Market D. Commodities MarketWhich of the following is not a Money Market Instruments? a. Corporate Bonds b. Bankers’ Acceptance c. Bills of Exchange d. Treasury Bills
- 1. Distinguish between the following pair of termsMoney Capital and Capital MarketsPrimary Markets and Secondary MarketsTreasury Bills and BondsStock Exchange Market and Over the Counter TradingList and explain the seven functions performed by the money and capital market in the global economy. Distinguish between the ; a. Money market and capital market b. Open market and Negotiated market c. Primary market and secondary market d. Spot market and forward marketExplain each of the investment instruments stated below that offered by financial institutions. These are the investment instruments you like to invest. Explain and justify why. 1. stocks 2. bonds 3. Annuities