1. Compare and contrast direct finance and indirect finance. Which is more likely to have a larger share of the total financial market in a mature economy? In a young economy? Why?
2. What is the relationship between the efficiency of a financial system and the rate of economic growth?
3. Describe the major types of risks to financial securities, and give a specific example of each. How do investors measure risk?
4. What is liquidity, and why do investors care
Compare and contrast direct finance and indirect financeDirect financeIt occurs when an organization borrowsdirectly from investorsIt prolongs the time required to raisethe desired funds since…