Describe the significance of financial markets and analyze the distinctions between direct and indirect finance. Compare and contrast the two major types of direct finance, which are bonds and stocks. Clarify why indirect finance is the primary avenue for funding in contemporary economies.

Outline the different interest rate structures, explaining the three theories proposed to expound on the term structure of interest rates, weighing their benefits and limitations. Examine the relevance of interest rate structures in implementing monetary policy.

3. Explain how conventional and unconventional monetary policies affect overall demand through transmission mechanisms and discuss the economic theories that underpin these mechanisms. Assess the efficacy of the different transmission channels for quantitative easing based on empirical research.