Tha-Shae Toys sells a wide variety of kids toys. The business is seasonal with the over 60% of annual purchases and sales occurring during the November - December period. The managers are discussing what to do with their surplus cash reserve during the off-peak periods. As their investment advisor: 

 

A.  Explain the difference between money markets and capital markets. Include in your explanation: 

 

i. the definition (3 marks) 

ii. purpose (3 marks)

iii. characteristics (4 marks) 

iv. THREE (3) securities traded in each market (4 marks)

 

 B. Discuss how Tha-Shae Toys, the government and investors can use the financial market to aid recovery. (6 marks)