Problem 1: What are financial markets? What function do they perform? How would an economy be worse off without them?
Problem 2: Define in a technical sense what we mean by financial intermediary. Give an example of your definition.
Problem 3: Distinguish between the money and capital markets.
Problem 4: What major benefits do corporations and investors enjoy because of the existence of organized security exchanges?
Problem 5: What is an investment banker, and what major functions does he or she perform?