SECTION B: Short-Answer Questions [ 10points]

1. What is the range of maturities for money market instruments?

2. What is the range of maturities for capital market instruments? 6

3. What is the name of the markets where previously issued financial instruments are traded?

4. What type of financial markets are Ghanas. Treasury bills traded in?

5. What type of financial markets are corporate bonds traded in?

6. What is the problem in which one party in a financial transaction has information that is not available to the other party in the transaction?

7. What is the term for the possibility that a borrower may behave in a more risky manner after receiving a loan?

8. What is the problem in which those who desire to borrow funds may plan to use them for risky projects?

9. What is the name of a situation in which a winning bidder in an auction receives a lower return than at least one participant who submitted a weaker bid?

10. What liabilities exist in depository institutions but not in other financial institutions?