Banking
Swinburne University of Technology
Faculty of Business and Enterprise
FIN20012: Financial Markets
Student Guide
Page
1
Section One: Course Outline
Section Two: True and False Questions
Section Three: Essay Type Questions
SECTION ONE: COURSE OUTLINE
1. The Financial System
2. The Banking Sector
3. Non Banking Financial Institutions
4. The share market and the corporation
5. Corporations issuing equity in the share market
6. Investors in the share market
7. Forecasting share price movements
8. Basic Concept of debt market
9. Short time debt
10.Medium- to long-term debt
11.International debt market
12.Government debt, monetary policy and the payments system
13. An introduction to interest rate determination and forecasting
Page
2
14.Sustainability and the financial sector.
SECTION TWO:
True and false questions
Chapter 1: A modern financial system
Page
3
1.
Money is a medium of exchange that includes attributes of divisibility and a store of value.
2.
A modern financial system may be said to comprise three major components: financial institutions, instruments and markets.
3.
The time–pattern of the cash flows attribute of a financial asset refers to the term to maturity of an instrument.
4.
A well-functioning financial system is expected to allocate savings to the most efficient users of the funds.
5.
Financial assets incorporate a number of attributes. The risk attribute refers to the probability that suppliers of funds will not purchase a particular asset when it is issued.
6.
Monetary policy is the actions of a central bank that influence the level of interest rates in order to achieve certain economic objectives.
7.
A principal role of investment banks is to gather deposit savings from customers and provide loans to their retail clients.
8.
Finance companies are examples of contractual savings institutions.
9.
The matching principle contends that short-term assets should be funded with
Faculty of Business and Enterprise
FIN20012: Financial Markets
Student Guide
Page
1
Section One: Course Outline
Section Two: True and False Questions
Section Three: Essay Type Questions
SECTION ONE: COURSE OUTLINE
1. The Financial System
2. The Banking Sector
3. Non Banking Financial Institutions
4. The share market and the corporation
5. Corporations issuing equity in the share market
6. Investors in the share market
7. Forecasting share price movements
8. Basic Concept of debt market
9. Short time debt
10.Medium- to long-term debt
11.International debt market
12.Government debt, monetary policy and the payments system
13. An introduction to interest rate determination and forecasting
Page
2
14.Sustainability and the financial sector.
SECTION TWO:
True and false questions
Chapter 1: A modern financial system
Page
3
1.
Money is a medium of exchange that includes attributes of divisibility and a store of value.
2.
A modern financial system may be said to comprise three major components: financial institutions, instruments and markets.
3.
The time–pattern of the cash flows attribute of a financial asset refers to the term to maturity of an instrument.
4.
A well-functioning financial system is expected to allocate savings to the most efficient users of the funds.
5.
Financial assets incorporate a number of attributes. The risk attribute refers to the probability that suppliers of funds will not purchase a particular asset when it is issued.
6.
Monetary policy is the actions of a central bank that influence the level of interest rates in order to achieve certain economic objectives.
7.
A principal role of investment banks is to gather deposit savings from customers and provide loans to their retail clients.
8.
Finance companies are examples of contractual savings institutions.
9.
The matching principle contends that short-term assets should be funded with