Reference no: EM131980287

Assessment Event - Report should be approximately 1,500 words in length, professionally presented, formatted for report style.

Task: Select a country of your choice. (hint: make sure there is plenty of information available for the country you choose so perhaps select a country from the G20 list of countries).

For your chosen country, research the central bank website, websites of major financial institutions, Bloomberg and Reuters websites, and products offered by the financial institutions.

Construct a report in a word document.

Your word document should include:

In the header - the subject code and name, assignment name, your name and student number In the footer - the page number Use of the style guide to generate a table of contents.

Part A (500 words) - Economic conditions of <Country> Consider the information presented by the central bank of your chosen country, such as information about the following economic indicators - GDP, inflation, employment data, and housing loan approvals. Decide what stage of the business cycle you think the country is in and explain 3 reasons why.

Include in your response a graph or picture of the current yield curve which you construct yourself in MS Excel and import into Word.

Part B (500 words) - Overview of the Financial System Provide an overview of the financial system in your country and include the following information:

• Currency (or currencies) used as a medium of exchange, how it is typically valued, the current value, and credit rating of the currency • Amount of government debt expressed in US$ and as a percentage of the country's GDP, whether this has been increasing or decreasing and why

• Name of the stock exchange (s), what products are traded on the exchange and how many stocks are listed on this exchange - hours of trading • Name of the derivatives exchange (s) (if there is one) and what products are traded on this exchange - hours of trading • List the regulators in the financial system of your country and provide a brief outline of what types of things each regulator is responsible for

• Name examples of various types of financial institutions, and construct a diagram of how the flow of funds between surplus and deficit units is applied in your country between these institutions

• Size of capital markets in US$

• Size of money markets in US$

• Size of the over the counter derivatives market in US$

Part C (200 words) - Product examples For each of the following scenarios, recommend a product which best suits the clients' needs and explain the features of the product. Please use the product name you choose as the heading and number each heading.

Examples of all of these can be found in the text.

1. A small corner store has decided to renovate and needs to borrow $20,000 to proceed with the renovations. Provide a calculation of how the business owner can repay the loan. Include in your response, assumptions of length of the loan and the interest rate.

2. A bank needs to borrow $8,000,000 for a period of 48 hours to cover a short-term funding requirement. Assume an interest rate and just calculate the amount of interest that the bank would need to pay on a simple interest basis.

3. The government needs to fund a budget deficit. No calculations required, please specify the product.

4. A 22 year-old, graduate engineer has $10,000 to invest and wants to keep adding $500 per month to the investment on a regular basis for the long term but is not happy to take much investment risk. Include an assumed rate of return, select a specified duration of investment, and predict how much the engineer could have saved by that specified time in the future. 5. A portfolio manager is concerned that equities are not going to perform as well as they have in the past but does not want to sell the portfolio due to cost reasons. No calculations required but please specify the three types of products, which could be used, and how they are traded.

Part D - (300 words) - Market risk Distinguish between market risk and specific risk and provide an example of each from your country.

The font should be 12pt times roman, 1.5 x line spacing, at least 3cm left margin and all work appropriately referenced using Harvard Referencing system. See TAFE Referencing Guide for assistance. The minimum number of appropriate sources of information should be approximately 5 per 1,000 words.

Attachment:- Report_Template.zip