What are the essential differences between primary

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15. What are the essential differences between primary and secondary securities Why are these instruments important to the operation of the financial system? ?
16. In what different ways are financial institutions classified or grouped? Why are such classifications or groupings important in helping us understand what different financial institutions do and what kinds of financial assets they prefer to hold?
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Chapter 02 - Financial Assets, Money, Financial Transactions, and Financial Institutions Since there are so many types of financial institutions (commercial banks, insurance companies, etc.) in the financial system today, grouping them according to what their distinctive function is greatly help us understand what they do and hence what kinds of financial assets they prefer to hold. Note that the above three groupings apply to financial intermediaries. Other financial institutions include security brokers and dealers, central banks, regulatory institutions, etc.

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