1)How do financial intermediaries generate profits?

2)Explain the difference between the money market and capital market. Which market would Holden use to finance a new vehicle assembly plant? Why?

3)What are the major risks faced by financial institutions and why is it important that each is carefully managed?

4)Compare and contrast debt and equity as a source of funds for financial claims?

5)Explain the key roles of the financial system. Why is it so important to the broader economy to have an effective and efficient financial system?