1. Compare the risk of loss of full return of principal when investing in a commercial paper, reverse repurchase agreement and treasury bills

2. Identify and define any FOUR monetary policy tools of a Central Bank and briefly explain how it may use EACH to influence the countrys supply of its domestic currency to manage its inflation, interest rate or foreign exchange rate targets.

3. What are the differences between EACH pair of financial markets?

• Primary markets versus Secondary Markets
• Money markets versus Capital markets
• Debt markets versus Equity markets

4. State one example of a financial instrument that is issued or traded in EACH market category.

• Primary markets versus Secondary Markets
• Money markets versus Capital markets
• Debt markets versus Equity markets

5. Describe the motivation of an investor in preferring the instruments in one market category compared to the other category

• Primary markets versus Secondary Markets
• Money markets versus Capital markets
• Debt markets versus Equity markets