Ch $02-$ Assignment $-$ Financial Markets and Institutions

$2.$ 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

A student sells his old computer at a computer hardware store and gets $$150$ for it$.$ He uses this cash to buy computer accessories.

Description of Transaction

Type of Market

A company agrees to buy copper from a seller in Chile at a certain price at the beginning of next year. Both companies sign a contract that locks in a future price at which the trade will take place.

Description of Transaction

Type of Market

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

Description of Transaction

Type of Market