1. In a short paragraph, define the term financial system. Then describe the relationship between savers and investors. Explain what you think would happen if the US financial system no longer existed?

2.In a short paragraph, define the term financial intermediary. Provide one example of a bank financial intermediary and one example of a non-bank intermediary. Do you think a financial intermediary is a good or bad thing in the US economy?

3.In a short paragraph, define the term financial asset. If you decided to purchase a financial asset, which one might you choose? If someone was to purchase a high risk financial asset, what would the pros and cons be of that purchase?

4.In a short paragraph, define the term yield. Give an example of a financial asset that would have a yield. What would happen if a bondholder sold their bond before maturity (in terms of the money they would receive based on the idea of yield)?

5.In a short paragraph, define equity. How can stockholders make money on their stocks? What would happen if a corporation started not doing so well or even closes down in terms of their stockholders?