A farmer agreese: different selection : equity , capital, debt, derivative jorge

Question

A farmer agreese: different selection : equity , capital, debt, derivative

jorge's broker: different select: primary, money, secondary , debt

a commercial bank : derivative, equity, money capital

someone tried to help me with the above problem but he just made it more confusing

please assit

Financial transactions occur in a variety of markets. The following statements describe common financial transactions. Indicate in which of the financial markets the transaction will be conducted. A farmer agrees to sell 10,000 bushels of wheat at a price of $4.80 per bushel to be delivered six months from now. The transaction, which is used to hedge the farmer's risk, is completed via a contract traded in the Chicago Board of Trade. This is an example of market transaction Jorge's broker has o Seafood Company. If he completes the purchase, it would be an example of m the opportunity to purchase 5,000 shares in the initial public offering of the Seattle market transaction. A commercial bank has agreed to loan the Yorkshire Pudding, Inc. $11 million for ninety days for the purchase of inventory. This is an example of market transaction.

Explanation / Answer

Transaction entered into by the FARMER

This transaction entered into by the farmer is an example of DERIVATIVE MARKET TRANSACTION.

This is so because future exchanges such as Chicago Mercantile Exchange deals in standardised specified assets and this is one of the form of Derivative Market Transaction.

Transaction entered into by the Jorge's Broker

This transaction is an example of CAPITAL Market Transaction.This is so because Capital Market deals in buying and selling of financial instruments such as securities.

Transaction entered into by the Commercial Bank

The above transaction is an example of MONEY Market Transaction. This is so because Money Market deals with borrowing and lending for short time period which ranges from few days but is for less than a year.

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