FIN 402 – Financial Institutions and Markets
Learning Goal: I’m working on a finance discussion question and need an explanation and answer to help me learn.
1. Suppose Lina wants to start her new business for producing organic products, but she has no money to start her business. Suggest her two different funding options and their functions. So Lina can get the funds easily to run her business. (3 Mark)
2. Suppose you are interested in buying your dream Sports car after one year from now. You estimate that the car will cost $40,000. If your local bank pays 5 percent interest on savings deposits, how much money will you need to save in order to buy the car as planned? (2 Mark)
3. Distinguish between primary markets and secondary markets with the help of suitable examples. (3 Marks)
4. Explain the phrase with an example “a dollar today is worth more than a dollar tomorrow.” (2 Mark)