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2 . Types of financial markets Financial markets across economies involve various kinds of participants and trade various types of assets and securities . It
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 youve 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 $ worth of gold at a certain price today. Spot markets
Description of Transaction
Type of Market
Sheila saves $ 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 $ 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
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