Financial Homework

Respond to the following questions thoroughly, in 150–300 words for each question. Use your textbook as your first and major reference.

1. Identify two financial intermediaries. What are their respective functions? What are their major roles in the economy?
2. What are the money markets and what are the capital markets? How do they differ? What are their respective activities?
3. If an asset is called a derivative, what does that mean? Explain your answer and use examples.