problem1. describe the following terms in the context of individual assets:

i. Marketability

ii. Liquidity

problem2. describe the liquidity and marketability characteristic of the assets that the following would normally anticipate3 to hold:

i. A fund that takes large stakes in small unquoted companies with the goal of achieving high prospect growth.

ii. A fund that guarantees to return the capital invested plus interest after five years. The interest rate is fixed at the outset.

iii. A fund that aims to make profits by trading in bonds.

iv. A motor insurer.

problem3. Describe why the financial markets of developed economies are regulated.

problem4. Outline why some financial products might not be subject to regulation.

problem5. Discuss the merits and demerits of using statutory regulation for all products in the financial markets.