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

Mr$.$ and Mrs$.$ Smith buy a new house in Walnut Creek, California. They paid the entire

amount, $$800,000,$ in cash.

Description of Transaction

Type of Market

A farmer agrees to sell $10,000$ bushels of wheat at the rate of $$4\mathrm{.}50$ per bushel to a buyer

Spot markets

in three months. A regulated exchange, such as the Chicago Board of Trade, completes

the transaction.

A corn processor in Nebraska has decided to purchase a futures contract for corn. The contract will increase in value if the price of corn rises, thereby

offsetting the processors' increased costs$/$decreased net income. In this example, the corn processor is