Please help me with the last three questions, please. Here is my answers (Thank you so much in advance!)

What is the difference between the Primary Market and the Secondary Market?

Primary Market: refers to the market where the securities are sold for the first time to receive a subscription from the general public.

Secondary Market: refers to the market where the securities, which have been issued earlier are traded or where securities are bought and sold.

Explanation:

Other Key Differences:

1.The primary market is also known as the 'new issue market' whereas the secondary market is also known as 'after-market'.

2.In the primary market the securities are purchased directly from the company who issues it whereas in the secondary market the securities are purchased indirectly.

3.In the primary market the security can only be sold once whereas in the secondary market the security can be sold multiple times.

4.In the primary market the seller of securities is sold by the companies to the investors whereas in the secondary market the securities are bought and sold by the investors only.

5.Underwriters are the intermediary in the case of primary markets whereas brokers are the intermediary in the case of secondary markets.

What are the seven types of Financial Institutions presented in the book?What does each do?

Commercial banks: depository institutions whose assets are loans and whose major liability are deposits.

Pension Funds: Financial institutions that offer savings plans through which fund particular accumulate savings during their working years before withdrawing them during their retirement years.

Thrifts: : depository institutions in the form of savings associations, savings banks, and credits union.

Finance companies: Financial intermediaries that make loans to both individuals and business.

Insurance companies: Financial Institutions that protect individuals and corporations (policyholders) from adverse events.

Securities firms and investment banks: Financial Institutions that help firms issue securities and engage in related activities such as securities brokerage and securities trading.

Investment funds: Financial institutions that pool financial resources of individuals and companies and invest those resources in diversified portfolios of assets.

What are the services provided by Financial Institutions?

What are the factors affecting nominal interest rates?

What is the liquidity preference theory? What does it say?