Question

10. (LO 7.3) Also, differentiate between voluntary and contractual savings.

16. (LO 7.4) How does each life cycle stage relate to the amount and type of individual savings?

20. (LO 7.5) Identify and briefly describe the major securities that are originated or traded in capital securities markets.

Answer 1

10.Also, differentiate between voluntary and contractual savings.

Suning Difference beturen Contractuell voluntary saving. the Name It seit suggesting & giung Griet about key difference between them. the voluntary suving means incividual or Organisation may voluntari Deposit in a funza kept a size some money to meet emergency e liquidity needs. while compulsony surning meuns it kept a size money as a muncutory reavisement. liree is borrower vuant to obtain loun & Mant to convey message that he is capable for refugnen repay The loun cencer make a Concition Preacts of guning this type Or suning Caller man compulsory surning, She idea & Philosophy behine booth Suning is different.

16. (LO 7.4) How does each life cycle stage relate to the amount and type of individual savings?

inciviruel How does Each life cycle stuge relate to amount (type of incividual Sunings? - Life cycle tyBolesis suggest Plan their suning & Consumotion behunin over the life cycle. Assumption of this is that all incividual choose to maintain stuble Isrc. & They intent to Even out their consumption in best Perible mannu. but some times it Happens That shy sure up in one Peria & spenz lot in next Perion but, approximately they ever cut.beth Suning es well as congemption . There are various stages of lify cyele. how earning & low sening High Eurning & High sering High Cuning & How Swing like

So, one by one we can uncustins. there are times where incivicoul low Eum. Eunn only meets his nup to Duy reavstemet. This is Beyining) in stare ex life cycle where he quxe mery low or some timesnot. there it & are Eunn times when only mee Thereafter, stren are times where his Euning grow with the Peries of time. However, his spensing also, grow. voluntry Suning The earter, High Enning & Hish stening & lour shing as Due to incluinae vuants to maintain his reputation e ull suel Things. So, his swing low. Munzutra Suwing. Eten, Thereette, low Euminy & High spenting to meet his necesny neets, his core curinn Phones ex instinkwell likelyle. in all sollh Phuses Re amont & tulen inzinien serings Diffen. 7

20. (LO 7.5) Identify and briefly describe the major securities that are originated or traded in capital securities markets.

Capital markets are place where savings and investments are channeled between the suppliers who have capital and those who are in need of capital therefore, it is called Capital Market.

Capital markets are composed of primary and secondary markets.The most common capital markets are the stock market and the bond market.

There are various securities which are traded in Capital Marker as follows :

Equity Shares of a Company. : As a primary market, the stock market allows companies to issue and sell their shares to the common public for the first time through the process of initial public offerings (IPO). The secondary market, on the other hand, includes venues overseen by a regulatory body like the Securities and Exchange Commission (SEC)/SEBI Securities and Exchange Board of India,  where existing or already-issued securities are traded between investors. Issuing companies do not have a part in the secondary market.
Preference Share of a Company : same way above.
Debenture/Bond of a Company : Company may issue debenture
Debenture or Bond of a Government/ Central Banks etc.
Derivative products like Future,option
Units of Mutual funds : it is indirect way of investment in stock market/bond market.A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors
ETF :An exchange-traded fund (ETF) is a type of security that involves a collection of securities—such as stocks—that often tracks an underlying index, although they can invest in any number of industry sectors or use various strategies.
There are many more securities which are traded in capital market.