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Money and Capital Markets: Financial Institutions and Instruments in a Global Marketplace, 8/e
Peter Rose, Texas A & M University

Financial Assets, Money, Financial Transactions and Financial Institutions

Standard & Poor's Questions

Chapter 2 in Money and Capital Markets: Financial Assets, Money, Financial Transactions and Financial Institutions

Question 1


What types of financial assets are represented on the balance sheets of businesses represented on S&P's Market Insight? Why does the mix of financial assets differ from firm to firm, even in the same industry?

Question 2


Chapter 2 in Money and Capital Markets discusses the importance of indirect finance (or financial intermediation) and semi-direct finance (or the intervention in the financial marketplace of security brokers and dealers) in fostering the growth and efficiency of financial transactions within the financial system. Which financial-service firms on the Market Insight list engage primarily in semi-direct finance and which are predominantly financial intermediaries, engaging principally in indirect finance? Please list as many of these two types of firms as you can.

Question 3


Chapter 2 in Money and Capital Markets explores the functions and the various measures of the money supply. Which financial firms on the S&P Market Insight list are the primary creators of money within the financial system?

In the case of a commercial bank, where on its balance sheet could you find an indication of the volume of money that bank has created and has currently outstanding? (You may wish to use Wachovia Corp (WB), a large money-center bank, as an example to help you answer this question.)
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