Q1.

Finance is money (capital) that is needed to start and run a business. The capital is used to do certain things in the business and this capital can be raised in several ways.

Questions:

1. What is a money market and what is a capital market? (2 marks)
2. What is a primary issue and what is a secondary issue? (2 marks)
3. State 1 security in money market and 1 security in capital market. (1 mark)

(Rubric: 2 marks each for a correct and clear explanation in question1a and 1b. Q1c carry 1 mark. Total mark is 2+2+1=5)