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1. Explain how the financial system makes both suppliers of capital and demanders of capital better off. 2. Explain why stocks are better suited for financial markets than financial intermedia
1. Explain how the financial system makes both suppliers of capital and demanders of capital better off.
2. Explain why stocks are better suited for financial markets than financial intermediaries.
3. Give an example of a transaction that goes from the supplier to capital to the financial intermediary to the financial markets to the demander of capital.
4. Give an example of a money market security and a capital market security.
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