A financial market is a general term that describes any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives.

It has now been over six years since the most acute phase of the financial crisis. Over the intervening years, market structures have evolved, and financial firms have changed their business models in important respects. Authorities around the world are implementing reforms that address the painful lessons of the crisis, while at the same time keeping the evolution of markets and firms in mind. (Powell, 2015)

Required:

1. Discuss why there are different types of Financial Markets and elaborate on four types. (15 marks, 160 Words)
2. Discuss the effect of the recent developments on the financial markets and their impact on the economy. (10 marks, 100 Words)
3. Briefly discuss five of the major types of financial institutions and provide examples. (20 marks, 150 Words)
4. Elaborate on the important differences between mutual and hedge funds. (6 marks, 30 Words)
5. Elaborate on the types of stock market transactions. (9 marks, 150 Words)
6. Elaborate on the three forms of market efficiency and provide examples (15 marks, 200 Words)

Part B: Critical analysis

Question 1:

What are the two basic causes of financial crises in emerging market economies? (5 marks, 60 Words)

Question 2:

Why might financial liberalization and globalization lead to financial crises in emerging market economies? (5 Marks, 90 Words)

Question 3:

What events can ignite a currency crisis? Discuss. (5 Marks, 100 Words)

Question 4:

What can emerging market countries do to strengthen prudential regulation and supervision of their banking systems? How would these steps help avoid future financial crises?

(5 Marks, 100 Words)

Question 5:

How can emerging market economies avoid the problems of currency mismatch? (5 Marks, 70 Words)