Respond to the following questions thoroughly, in 150–300 words for each question. Use your textbook as your first and major reference.
- Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy?
- What are the money markets and what are the capital markets? How do they differ? What are their respective activities?
- If an asset is called a derivative, what does that mean? Explain your answer and use examples.