CHAPTER 77 FINANCIAL MARKETS

Question 1

Capital markets

Answer 1

Financial markets which provide long-term borrowing and lending, usually defined as over one year.

Question 2

Commercial banks

Answer 2

Banks that provide services to businesses.

Question 3

Derivatives

Answer 3

Financial instruments based on the values of other financial instruments.

Question 4

Equity

Answer 4

In a company, is the value of the assets owned by the shareholders.

Question 5

Financial markets

Answer 5

Any convenient set of arrangements where buyers and sellers can buy or trade a range of services or assets that are fundamentally monetary in nature.

Question 6

Investment banks

Answer 6

Banks that engage in a variety of activities in different financial markets, such as the foreign exchange market, the money markets, the capital markets and the derivatives markets.

Question 7

Money market

Answer 7

Financial markets that provide short-term borrowing and lending, usually defined as up to one year.

Question 8

Retail banks

Answer 8

Banks that provide services to individuals.