Question 1:
‘The function of financial system is only to channel funds from surplus to deficit units’. Discuss
Question 2:
Examine the financial claims of a deposit, a bill, ordinary share and a bond in terms of the following characteristics: risk, liquidity, real value certainty and term to maturity. Discuss and explain the relationship between these characteristics.
Question 3:
Make a distinction between orders driven and quote driven financial markets, giving illustrations of each.
Question 4:
Why is electronic order-matching becoming the main system for trading in financial markets?