Case Study:

Assume that you recently graduated with a degree in Banking and Finance and have just reported to work as a consultant at the BWM Bank. Your first assignment is to explain the nature of the financial markets to a high net worth client, Janet, who expects to invest substantial amounts of money through BWM Bank. Janet is a tennis player and would like to understand in general terms what will happen to her money. Your boss has developed the following questions that you must use to explain the financial system to Janet. Questions: Q1. Discuss the primary ways in which capital is transferred between savers (surplus unit) and borrowers (deficit unit). Q2. Differentiate between physical asset markets versus financial asset markets, money markets versus capital markets, and primary markets versus secondary markets. Q3. Discuss the role and importance of bank as financial intermediary in the financial market. Q4. Provide the justifications that efficient financial markets are essential for a healthy economy and economic growth.

Case Study: Assume that you recently graduated with a degree in Banking and Finance and have just reported to work as a consultant at the BWM Bank. Your first assignment is to explain the nature of the financial markets to a high net worth client, Janet, who expects to invest substantial amounts of money through BWM Bank. Janet is a tennis player and would like to understand in general terms what will happen to her money. Your boss has developed the following questions that you must use to explain the financial system to Janet. Q1. Discuss the primary ways in which capital is transferred between savers (surplus unit) and borrowers (deficit unit) Q2. Differentiate between physical asset markets versus financial asset markets, money markets versus capital market, and primary markets versus secondary markets. Q3. Discuss the role and importance of bank as financial intermediary in the financial market. Q4. Provide the justifications that efficient financial markets are essential for a healthy economy and economic growth