NAPCOA8010100000041ebc490050000&kctx-ream-0057;&ck-m1; action-takeQuiz&uquiz;_pr

Question

NAPCOA8010100000041ebc490050000&kctx-ream-0057;&ck-m1; action-takeQuiz&uquiz;_probGuid-Q inancial Markets and Institutions raded Assignment | Read Chapter 2| Back to Assignment servlet/quiz?quiz Due Wednesday 06.20.18 at 11:45 P Attempts:2 Keep the Highest: 3/5 Aa. Aa 2. Types of financial markets Financial markets across economies involve various kinds of participants and trade various types of assets and securities. It is important to understand the kinds of markets in which financial transactions take place. You are preparing to take an exam in your finance class, and you've been making flash cards on different markets and transactions. Indicate the markets in which each of the following transactions will be traded: Description of Transaction Type of Market Sonia takes a mortgage loan from a bank to purchase property Description of Transaction Type of Market Carlos is an immigrant from Mexico to the United States. He sends $200 to Mexico on June 15 at the exchange rate on that day Description of Transaction Type of Market

Explanation / Answer

A bank purchased a credit default swap from another financial institution to protect itself against the default of one of its borrowers. In this example, the bank is hedging.

S.No. Description of Transaction Type of Market Explanation 1 Sonia takes a mortgage loan from a bank to purchase property Financial Assets Market A financial asset is wherein an underlying asset is bought or sold for a consideration 2 Carlos is an immigrant from Mexico to the United States. He sends $200 to Mexico on June 15 at the exchange rate on that day. Spot Market Spot Market is wherein the currencies are exchanged at the prevailing market rate 3 Long term mortgage backed securities are traded between investors and issuers Capital Market Capital market is a type of market where transactions having a maturity period of one year or more are traded. 4 Google filed its initial public offering worth $2.7 billion in 2004 Primary Market Stocks issued for the first time are dealt in the primary markets

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.