Respond to the following questions thoroughly, in 150-300 words for each question.  Use your textbook Financial and Institutions Eighth Edition authors – Frederic S. Mishkin and Stanley G. Eakins as your first and major reference.

1. In what ways are the financial markets and financial intermediaries important, in terms of the aggregate economy?

1. What is the difference between a conventional bond and a zero coupon bond?  Why would an investor choose one over the other?

1. What is meant by the statement that people and institutions are risk averse?  Why do people invest in assets that are more risky than the average investment?

**This needs to have in-text citations and full reference in APA format and to be plagiarism free.