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Faculty of CommerceDepartment of Business Administration| SCORE/GRADE| | scar NAME INITIAL| COURSETITLE & CODE| ABA203 Money and Banking| circumstance| 1/2010-11| STUDENTNAME| Tung Hau Suen| STUDENTNO.| 200922030H| DEPARTMENT| Accounting and Banking| DATE| 26/10/2010| ASSIGNMENT TITLE.| Assignment 1| PAGE| of 1| No.| | | 1.2.3.4. 5. 6.7(a)| It is because family genus Phalluss atomic number 18 very close to you. You know your family part better than a stranger. You know more about the borrowers honesty, propensity for risk taking and other traits. Therefore, there is little asymmetric information than with a stranger and the adverse alternative problem is less likely to happen. As a result, you are more likely to progress to loan to a family member than to a stranger.I do not agree with this statement. Secondary markets comfort the basal market with liquidity and price discovery. Secondary markets make securities more liquid and thus easier to sell in the primary markets. Also, price in secondary markets determine the prices that corporations issuing securities pose in primary markets. Therefore, secondary markets are more master(prenominal) than primary markets.This argument makes sense.

Being absence of well-developed financial markets, monetary resource cannot be channeled from economic players that devour saved surplus specie to those that have a shortage of funds and most oil-bearing use. As a result, capital cannot be efficiently allocated. Entrepreneurs cannot pull in funds to set up businesses that would help the economy go rapidly. Therefore, developing countries grow slowly if they do not have well-developed financial markets.They pass on not trade in a barter economy. It is because the orchard owner likes and banana trees, but the banana grower does not like apples, the banana grower go away not want apples in exchange for his bananas. Thus they will not trade. The banana grower likes only chocolate and the chocolatier likes only apples they will not trade. The... If you want to get a sufficient essay, order it on our website: Orderessay

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