ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Primary Market
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Foreign Exchange Market
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Equity Market
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Auction Market
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Detailed explanation-1: -The spot market is where financial instruments, such as commodities, currencies, and securities, are traded for immediate delivery. Delivery is the exchange of cash for the financial instrument. A futures contract, on the other hand, is based on the delivery of the underlying asset at a future date.
Detailed explanation-2: -Financial markets are the marketplace where various financial assets are traded. Equity and debt markets are two types of financial markets. As the name suggests, the equity market is a market for equity-related securities, and the debt market is for debt-related securities.
Detailed explanation-3: -An exchange market is more of an open market. Here the prices of currencies, start date, expiration date and parties involved are clearly transparent or rather highly visible. On the other hand, in an OTC market, all terms and conditions involved with a transaction are held within counter parties only.
Detailed explanation-4: -The debt market is the market where debt instruments are traded. Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate) and mortgages.