What are capital markets? What does it mean for the capital market to be efficient?
What is the relation between business cycles and the general level of interest rates? Why is the relationship this way?
What is the role of a financial intermediary in the market?
What is "nominal rate"? What is "real rate of interest"? If inflation is anticipated to be 5 percent during the next year, while the real rate of interest for a one-year loan is 5 percent, then what should the nominal rate of interest be for a risk-free one-year loan?