Scribd
Upload
35 views1 page

Tutorials - Problem Set I - ECON 3011

The document outlines a problem set for an Economics of Financial Institutions course, covering key concepts such as financial systems, direct vs. indirect finance, and the role of financial intermediaries. It also addresses the functions of financial markets, the distinction between primary and secondary markets, and the structure of the Caribbean financial system. Additionally, it discusses the regulation of the financial sector and the management of risks by financial intermediaries.

Uploaded by

Jelani Greer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
35 views1 page

Tutorials - Problem Set I - ECON 3011

The document outlines a problem set for an Economics of Financial Institutions course, covering key concepts such as financial systems, direct vs. indirect finance, and the role of financial intermediaries. It also addresses the functions of financial markets, the distinction between primary and secondary markets, and the structure of the Caribbean financial system. Additionally, it discusses the regulation of the financial sector and the management of risks by financial intermediaries.

Uploaded by

Jelani Greer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Problem Set 1

Economics of Financial Institutions (ECON 3011)


28 January 2025

1. Define financial systems. What are their primary components, and why are
they significant in the economy?

2. What is the difference between direct and indirect finance? Provide examples
of each.

3. Explain the importance of financial intermediaries in reducing transaction


costs and risks.

4. Discuss the function of financial markets. How do they facilitate the connection
between savers and borrowers?

5. Differentiate between primary and secondary markets. How do they contribute


to the overall financial system?

6. Explain the key differences between debt markets and equity markets.

7. Describe the structure of the Caribbean financial system. What are the
primary institutions involved?

8. Discuss the challenges facing the development of financial market


infrastructure in the Caribbean.

9. Why is the financial sector heavily regulated? Outline the two main reasons for
regulation.

10. Explain how financial intermediaries manage risks through risk sharing and
asset transformation.

You might also like