Financial Markets

Question 1

Which is bigger, bond markets or equity markets?

Answer 1

Bond markets are bigger in both size and value trading however, the volume traded for bonds is lower as most trades in bonds tend to be very large compared to equities.

Question 2

Who are the largest issuers of bonds?

Answer 2

Governments

Question 3

What is the largest financial market?

Answer 3

FX (Foreign Exchange Markets)

Question 4

What type of market is FX?

Answer 4

Over the counter market (OTC)

Question 5

What is an over the counter market?

Answer 5

One where the brokers/dealers negotiate directly with one another, there is no central exchange or clearing house.

Question 6

Which countries are the key players in FX markets?

Answer 6

1) UK
2) US
3) Singapore
4) Hong Kong
5) Japan

Question 7

What are derivatives markets?

Answer 7

Derivative markets trade a range of complex products which are based on underlying instruments. It is a contract whose value is determined by, or derived from, the value of another asset.

Question 8

What are insurance markets ?

Answer 8

Specialise in the protection of personal risk, corporate risk and protection of life events.

Question 9

Which countries are the largest insurance markets?

Answer 9

US, Japan and the UK