ANSWERS UNIT 10

securities m.

capital m. money m. derivatives m. commodity m. currency m. property m.

equity m. debt m.

10.1.

a) Where do the terms stock market, bond market, foreign exchange market,
real estate market, credit market fit in above?

stock m.: either = equity market, but often used in a much more general sense
bond m.: generally = debt m. (although, of course, technically sloppy)
foreign ex. m.: = currency m.
real est. m.: = property m.
credit m.: either = bond m., but also sometimes more specifically something
like: The credit market deals in financing by means of loans and other
credit substitutes. Leasing and financial outsourcing are parts of the
credit market.

b) Are all these distinctions clear-cut?

As you can see from a): Obviously not!

10.2.
Allocate the terms associated with these markets (some terms can be entered
into more than one box):

Equity market blue chips preference common

share stock
Debt market debentures treasury corporate (commercial
bonds bonds paper)
treasury bills junk bonds gilts convertible
bonds
Money commercial repos (treasury certificates of
market paper bills) deposit

Commodity pork bellies coffee aluminium livestock

m.
Currency m. currency foreign
options exchange

Derivatives currency interest rate futures swaptions

m. options swaps

Property m. mortgage real estate