Example of a type of investing or borrowing

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1. Give an example of a type of investing or borrowing where financial institutions take the place of the financial market.

2. Name two ways financial institutions facilitate transactions in the financial markets without replacing the market.

3. Contrast the activities of depository institutions with those of securities firms. Your answer should address how the manner in which these institutions create value differs (or are the same), how risks faced by the institutions differ (or are the same), and describe briefly the regulatory environment for each.

4. Identify and describe two types of intermediation that financial institutions engage in and give and example of each (For the example, you should indicate both the securities issued by the financial institution and the securities in which the financial institution invests that constitute that type of intermediation).

Reference no: EM131100928

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