Compare and contrast money and capital markets

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Question 1. Compare and contrast Money and capital markets.

Question 2. If you are a banker and expect interest rates to rise in the future, would you want to make short-term or long-term loans? Why? Justify your reason.

Question 3. What are the benefits and costs for a bank when it decides to increase the amount of its bank capital?

Question 4. Can a financial institution keep borrowers from engaging in risky activities if there are no restrictive covenants written into the loan agreement?

Question 5. Why are secured loans an important method of lending for financial institutions?

Reference no: EM132518721

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