Financial instruments

13. Financial instruments are traded in both money and capital markets. Those traded in money markets are short—term in nature (no more than one year in remaining maturity) and are usually debt instruments. Those traded in capital markets are longer—term in nature and composed of both debt and equity instruments.
14. The New York Stock Exchange is both a primary and secondary market because both new and existing issues are traded there. It is a capital market because its activity involves primarily stocks and long—term bonds.
15. Investment companies have given small investors alternatives to bank deposits that compete by providing small investors competitive rates of return.
16. After 1945 and before 1980, annual bank failures were generally fewer than 20 per year. During the l980s, this number rose to over 200.
17. During the 1960s, loans by foreign banks operating in the United States were less than 2 percent of loans by U.S. banks. By 1989, the percentage increased to approximately 10 percent.