PartRGHubbardMoneytheFinancialSystemandtheEconomyZhengChangjun.pptVIP

Financial Markets in the Financial System (Cont’d) Providing Risk-Sharing, Liquidity, and Information Services (cont’d) There is no single “secondary market”. Indeed, we can categorize secondary markets by (1) what maturity level characterizes the claims being traded, (2) how trading take place, and (3) when settlement takes place. Financial Markets in the Financial System (Cont’d) Providing Risk-Sharing, Liquidity, and Information Services (cont’d) Maturity: money and capital markets. —Debt instruments that have a maturity of greater than one year are traded in capital markets. —Eq