Question 1 : If financial markets were perfect and costless, would there be a need for financial institutions? Explain

Question 2: Susan has a fair credit score, owns her own home and car, and has made all of her payments consistently (with a few late payments). Her current car is 5 years old and owned outright. She still has 25 years left of payments on her home.

Would she do better to approach a finance company or commercial bank to finance a new car? What are the advantages of either? What are the disadvantages? Explain