Question 9 a) Explain what is meant by direct vs. indirect financing and the roles of financial intermediaries. (10 marks) b) Explain the characteristics of money market and capital market instruments and provide examples. (10 marks) c) Assume that you just deposited 1,250 into a bank account. The current real interest rate is 1% and inflation is expected to be 5% over the next year. What is the nominal rate would you require from the bank over the next year? How much money will you have at the end of one year? If you are saving to buy a bicycle that currently sells for 1,300, will you have enough money to buy it