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1. Distinguish between the following pair of terms
Money Capital and Capital Markets
Primary Markets and Secondary Markets
Treasury Bills and Bonds
Stock Exchange Market and Over the Counter Trading
Step by step
Solved in 2 steps
- Distinguish the following financial markets. Provide examples of the type and/or nature of the securities traded in the market. Debt v/s Equity Market OTC v/s Organised ExchangeWhat are the pros and cons of dealer markets (e.g. - treasury bond markets) as compared to trading securities on an exchangeWhich one of the following is true ? A, CFDs are over - the - counter instruments that can be used to gain exposure to equities,bonds, currencies,futures and options. B, CFDs are over - the - counter instruments that can be used to gain exposure to equities, bonds, currencies, indices and commodities. C, CFDs are exchange - traded instruments that can be used to gain exposure to equities, bonds,currencies,futures and options. D, CFDs are exchange - traded instruments that can be used to gain exposure to equities,bonds,currencies, indices and commodities. ?
- Define the term ‘Capital Market’ and explain different forms of efficiencies by referring to the Muscat Securities Market (MSM).Distinguish the following financial markets. Provide examples of the type and/or nature of the securities traded in the market. Debt v/s Equity MarketWhich of the following is not a main core function of the financial system?a. Provide a payments system for the exchange of goods and services.b. Provide mechanisms to separate funds for smaller-scale investmentc. Provide the channels to transfer funds and economic resources across industriesd. Provide ways to manage uncertainty and mitigate risk According to the market segmentation theory of the term structure,a. the interest rate for bonds of one maturity is determined by the supply and demand for bonds of that maturity.b. bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time.c. investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope downward.d. only A and B of the above. Costs associated with the correspondent bank process include:a. Interestb. Currency conversion spreadc. Reputation costsd. Payroll costs
- Distinguish the following financial markets. Provide examples of the type and/or nature of the securities traded in the market. OTC v/s Organised ExchangeShow how an open market sale affects the RBI’s balance sheet and also the balance sheet of the commercial bank of the purchaser of the bond sold by the RBI.Indicate whether the following instruments are examples of money market or capital marketsecurities.a. U.S. Treasury billsb. Long-term corporate bondsc. Common stocksd. Preferred stockse. Dealer commercial paper
- c). Explain the difference between money market and capital market and mention two (2) securities traded in each of these markets.How do money markets and capital markets differ? Identify the types of securities traded in money and capital markets.Differentiate between money market and capital market securities by givingappropriate examples.
