$2.$ Types of financial markets

Financial markets across economies involve various kinds of participants and trade various types of assets and securities$.$ It is important to understand the kinds of markets in which financial transactions take place.

You are preparing to take an exam in your finance class, and you$$ve been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded:

Description of Transaction

Type of Market

Sonia takes a mortgage loan from a bank to purchase property. Physical asset markets

Description of Transaction

Type of Market

An investor buys $$10,000$ worth of gold at a certain price today. Spot markets

Description of Transaction

Type of Market

Sheila saves $$10,000$ and buys a certificate of deposit $($CD$)$ that will mature in six months. Money markets

Description of Transaction

Type of Market

Vezio Corp. decides to sell shares worth $$15$ million directly to a small group of US institutional investors. Private markets

A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its borrowers. In this example, the bank is $.$