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Essay questions 1) Distinguish between direct financing and indirect financing. 2) Distinguish between primary markets and secondary markets. 3) Why is it so important for

Essay questions

  1. 1) Distinguish between direct financing and indirect financing.

  2. 2) Distinguish between primary markets and secondary markets.

  3. 3) Why is it so important for an economy to have fully developed financial markets?

  4. 4) Why are financial intermediaries so important to an economy?

  5. 5) Describe how over-the-counter markets work.

  6. 6) What are adverse selection and moral hazard?

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1 Direct Finance Funds go straight from lenders to borrowersIndirect finance funds are channeled thr... blur-text-image

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