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 Sonia takes a mortgage loan from a bank to purchase property. Type of Market Description of Transaction You need gasoline now, so you drive to the gas station and purchase 10 gallons of Type of Market gasoline Description of Transaction Abbey allocates 80% of her portfolio for investments in short-term US Treasury bills. Type of Market Type of Market Description of Transaction The state of California issues new bonds to the public with an investment bank serving as the underwriter to raise capital 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 banks