1. Discuss how comdury markets benefit houschold savers and investors 2. As a part of Fis acting as intermediaries, PS serve as both broker and asset transfer . How can brokers and dealers make money? Which activity is niski? Why? h Describe the set transformation function. Les transformation risky activaty? Why 3. In your opinion, what have been the major factores contributing to south in the form financial markets? 4. List and discuss the major macro benefits of financial intermediaries. What role does the government home in the credit allocation process? Leat types of fl and simply describe them in your own woed. 6. Define liquidity risk to a financial intermediary F1 ......nisk at a financial intermediary (FI) is the risk that an F1 may not have cough capital to offseta de decline in the value of its acts or to meet its long term financial obligations List and briefly define 3mmy market matruments and 5 capital market instruments 9. Houscholds are increasingly likely to both directly purchase secuntis perhaps va a broker) and also place some money with a bank or thrift to meet different needs - Match up the given investie's desire with the appropriate intermediary or direct security A Money likely to be needed within six months 1. Depository institutions B. Money to be set aside for college in 10 years C Money to provide supplemental retirement 2. Insurer income 3. Pension fund D. Money to be used to provide for children in the 4. Stacks or bonds event of death 10. How could secondary markets help support primary markets? Explain