Q1: Why are financial markets important to the health of the economy? Q2: As a medium of exchange, money plays an important role in the development of the economy. Define money and explain how money as a medium of exchange facilitates transactions in the economy. Q3: Some economists suspect that one of the reasons that in developing countries grow so slowly is that they do not have well - developed financial markets. Does this argument make sense ? Q4. If you suspect that a company will go bankrupt next year, which would rather hold , bonds issued by the company or equities issued by the company? Why? Q5: Briefly explain the meaning of the following terms: a) Bitcoins b) Fiat money c) Commercial paper d) Liquidity e) Yield curve