Question 1

Explain four (4) functions that are provided by financial intermediaries.

b. Distinguish between the following terms using appropriate examples:

i. primary markets and secondary markets

ii. capital markets and money markets

iii. organized exchanges and over-the-counter

c. Contrast the factors a firm may consider when deciding to issue equity as against deb

Question 5

a. Explain the term derivatives, and how they are used to hedge against risk in meeting investor needs.

b. Outline the basic features of a forward, futures and options contract.

c. Using appropriate examples differentiate between forward, futures and option contracts.