1. Financial institutions are classifiable by their origins, purposes, and major characteristics. What are the main types of financial institutions? What are the characteristics of the markets each institution serves? What are the risks that each type of institution face? Which types of risk are most important to each type of institution? Why?
2. Financial markets operate with varying degrees of efficiency. What are the main ways in which the efficiency of financial markets and instruments are defined? Which markets are most efficient? Least efficient? On what measures? Why?