1. What is the purpose of the capital market? How do capital market securities differ from money market securities in their general characteristics?

2. Describe the sequence of events in a financial crisis and explain why they can cause economic activity to decline.

3. Which of the following is not considered an acceptable inventory cost method according to GAAP?

First-in, first-out.

First-in, last-out.

Last-in, first-out

Average cost.