) What is the difference between debt and equity?

2) a. What is the difference between the term financial Markets and financial intermediaries?

b. Identify if the following transaction take place in a financial market or through a financial intermediary

1. a bank lending depositors' money to a local business

2. you buy treasury bonds from the U.S Treasury

3. a pension fund investing contributions in shares (stocks) of a company

3) For each of the following two questions categorize the transaction described according to: (a) whether they occur in the primary market or in the secondarymarket, AND (b) whether the financial instrument involved is a money market instrument or a capitalmarket instrument.

1. ABC Corporation opens for business by selling initial shares of stockto 10 private investors. Such a transaction (a) occur in the ________________________________market (b) and the financial instrument is a ___________________instrument 2. The DEFOE mutual fund company buys $100,000 worth of three-month Treasury bills from First Securities Corp of Omaha. Such a transaction (a) occur in the _______________________ market (b) and the financial instrument is a ___________________instrument