Suggested Answers

1. To facilitate the allocation of resources by connecting savers and borrowers.
2. The regulation of money supply and interest rates, implemented by the Bank of Ghana.
3. Money market deals in short-term instruments; capital market deals in long-term instruments.
4. To ensure stability, transparency, and fairness in financial transactions.
5. The cost of borrowing money, expressed as a percentage of the principal.
6. Primary markets issue new securities; secondary markets trade existing securities.
7. Liquidity refers to how easily an asset can be converted into cash without affecting its price.
8. To regulate and supervise securities markets to protect investors.
9. To control the money supply by buying or selling government securities.
10. The process by which financial institutions channel funds from savers to borrowers.