FIN2601 Assignment 1 Semester 1 & 2 2021

FIN2601 Assignment 1 Semester 1 & 2 2021 FIN2601 ASSIGNMENT 1 SEMESTER 1 & 2 2021 UNIQUE NUMBER: PREVIEW OF QUESTION 1 1. 1 Reference: Prescribed book PG 35 The money market is created by a financial relationship between suppliers and demanders of short-term funds (funds with maturities of one year or less). The money market exists because some individuals, businesses, governments, and financial institutions have temporarily idle funds that they wish to invest in a relatively safe, interest-bearing asset. The capital market is a market that enables suppliers and demanders of long-term funds to make transactions. Included are securities issues of business and government. The backbone of the capital market is formed by the broker and dealer markets that provide a forum for bond and stock transactions. International capital markets also exist.