I. Types of Financial Markets Physical assets vs. Financial assets

Spot vs. Futures

Money vs. Capital

Primary vs. Secondary

Public vs. Private

Consider the following 5 transactions: Place the letter for the appropriate market (or NA if not applicable) for each transaction:

1) Purchase of 300 shares of AT&T stock on the NYSE

Physical Asset (P) or Financial Asset (F) =

Spot (S) or Futures (F) =

Money (M) of Capital (C ) =

Primary (P) of Secondary (S) =

Public (P) or Private (V) =

2) Purchase a 90-day certificate of deposit from my local bank with $1000

Physical Asset (P) or Financial Asset (F) =

Spot (S) or Futures (F) =

Money (M) of Capital (C ) =

Primary (P) of Secondary (S) =

Public (P) or Private (V) =

3) Purchase 10 July soybean futures contracts on the Chicago Board of Trade

Physical Asset (P) or Financial Asset (F) =

Spot (S) or Futures (F) =

Money (M) of Capital (C ) =

Primary (P) of Secondary (S) =

Public (P) or Private (V) =

4) KTS does an initial public offering of stock today

Physical Asset (P) or Financial Asset (F) =

Spot (S) or Futures (F) =

Money (M) of Capital (C ) =

Primary (P) of Secondary (S) =

Public (P) or Private (V) =

5) Purchase of 100 bushels of corn from Stan the farmer

Physical Asset (P) or Financial Asset (F) =

Spot (S) or Futures (F) =

Money (M) of Capital (C ) =

Primary (P) of Secondary (S) =

Public (P) or Private (V) =