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Q1: Why are financial markets important to the health of the economy? Q2: As a...

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Q1: Why are financial markets important to the health of the economy? Q2: As a medium of exchange, money plays an important role in the development of the economy. Define money and explain how money as a medium of exchange facilitates transactions in the economy. Some economists suspect that one of the reasons that economies in developing countries grow so slowly is that they do not have well-developed financial markets. Does this argument make sense? Q3: Q4. If you suspect that a company will go bankrupt next year, which would rather hold, bonds issued by the company or equities issued by the company? Why? Q5: Briefly explain the meaning of the following terms: a) Bitcoins b) Fiat money c) Commercial paper d) Liquidity e) Yield curve **** *****

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