Place your order now for a similar assignment and have exceptional work written by our team of experts, At affordable rates

For This or a Similar Paper Click To Order Now

ASSIGNMENT INSTRUCTIONS

You will create a PowerPoint presentation with audio covering the following topics:
1. Explain capital transfers.
2. What are the three primary ways in which capital is transferred between savers and borrowers? Describe each one.
3. What is a financial market?
4. Differentiate between the following markets:
a. Physical asset markets versus financial asset markets
b. Spot markets versus futures market
c. Money markets versus capital markets
d. Primary asset markets versus secondary markets
e. Public markets versus private markets

HOW TO WORK ON THIS ASSIGNMENT (EXAMPLE DRAFT/ESSAY)

1. Capital transfers refer to the movement of funds from savers to borrowers for the purpose of investment. These transfers are essential to the functioning of a modern economy and are a key mechanism for allocating resources.
2. The three primary ways in which capital is transferred between savers and borrowers are:

   a. Direct transfer: In this method, the saver lends money directly to the borrower without the involvement of any financial intermediary. For example, a person might lend money to a friend or family member.

   b. Indirect transfer through a financial intermediary: In this method, the saver lends money to a financial intermediary, such as a bank or mutual fund, which then lends the money to the borrower. This method is commonly used in the financial markets.

   c. Indirect transfer through a financial market: In this method, the saver buys a financial asset, such as a stock or bond, which represents a claim on the borrower’s future income. The borrower then uses the funds raised from the sale of the asset to finance their investment.

3. A financial market is a marketplace where financial instruments, such as stocks, bonds, currencies, and derivatives, are bought and sold. Financial markets serve as a mechanism for transferring funds between savers and borrowers and for determining the price of financial instruments.
4. The different types of markets are:

   a. Physical asset markets versus financial asset markets: Physical asset markets involve the buying and selling of tangible assets, such as real estate and commodities. Financial asset markets involve the buying and selling of financial instruments, such as stocks and bonds.

   b. Spot markets versus futures markets: Spot markets involve the buying and selling of assets for immediate delivery, while futures markets involve the buying and selling of contracts that specify a future delivery date.

   c. Money markets versus capital markets: Money markets involve the buying and selling of short-term, low-risk financial instruments, such as Treasury bills and commercial paper. Capital markets involve the buying and selling of long-term financial instruments, such as stocks and bonds.

   d. Primary asset markets versus secondary markets: Primary asset markets involve the sale of new financial instruments, while secondary markets involve the trading of existing financial instruments.

   e. Public markets versus private markets: Public markets involve the buying and selling of financial instruments on a regulated exchange, such as the New York Stock Exchange. Private markets involve the buying and selling of financial instruments between private individuals or institutions, without the involvement of a regulated exchange.

For This or a Similar Paper Click To Order Now