The markets that serve the financial system may be classified in several different ways, including:
A) Money markets versus capital markets
B) Open markets versus negotiated markets
C) Primary markets versus secondary markets
D) Spot markets versus futures markets
E) All of the above

Question

Quizplus · Accepted Answer

All the options (A, B, C, D) represent valid ways to classify financial markets, highlighting different aspects such as the duration of the financial instruments (money markets vs. capital markets), the way transactions are made (open vs. negotiated markets), the stage of the financial instrument's lifecycle (primary vs. secondary markets), and the timing of the delivery of the financial instrument (spot vs. futures markets).

The Markets That Serve the Financial System May Be Classified