1)Compare and contrast direct finance and indirect finance. Which is more likely to have a larger share of the total financial market in a mature economy? In a young economy? Why?
2)What is the relationship between the efficiency of a financial system and the rate of economic growth?
3)Describe the major types of risks to financial se- curities, and give a specific example of each. How do investors measure risk?
4)Describe and explain three factors other than expected return and risk that affect the demand for financial securities.