Due Friday, Week 7 Financial Markets and Institutions - Final Project Scope Document The objectives of the final project are for you to learn about a topic relevant to this course, research the...

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Due Friday, Week 7

Financial Markets and Institutions - Final Project Scope Document


The objectives of the final project are for you to learn about a topic relevant to this course, research the issues, and communicate your understanding/learning and perspectives on the topic.



Individual Written Paper



The paper should be between 5-7 pages, excluding the title, table of contents, graphs and bibliography. The paper should be fully consistent with the APA style guide and should be in strict conformity with Berkeley College Academic Integrity policies.


The paper should not be just a recitation of the facts of the situation. It is important to go beyond the facts by asking and analyzing the important questions related to WHY and HOW. Do not get overly broad in your paper. Research your topic and narrow it down to a specific set of research objectives.


For instance, if the topic you have selected is moral hazard in lending you could research the hazards endemic to mortgage lending. This topic draws on the fundamentals of financial markets, the role of bank and non-banks, market regulations and oversight, lending products, and evaluation of market risk (credit agencies). Additionally, you could draw on human behavior, human biases and the collective energy of institutions and markets to transfer risk based on information asymmetry. Again, remember the subject is very large in scope and therefore, focusing your research topic is essential.


Key components that you must have



  • Section on research Scope

  • Section on Conclusion

  • Charts and Data in the Appendix

  • In text citations and bibliography (do not use “pedias”)


You will be required to interact with your professor so that proper development and effective assistance can be provided.


The grading weights are described in the grading rubrics below. The paper must confirm to APA style. Failure to do will result in reduction of grades by 10%.



FINAL PAPER


Each student will select a topic from the list below. The paper isdue Friday evening, week 7.


Final Paper Topics



  1. Financial Markets in Developing Countries

  2. Financial Markets and Interest rates

  3. Moral Hazard in the Financial Markets

  4. Systemic risk contagion in global markets.

  5. Insurance Market for Health Care – ACA, ACA reform, and/or ACA replacement

  6. Insurance Markets for other products

  7. FederalReserve System and Policies

  8. Commercial Banking

  9. Stockand Bond markets

  10. Foreign Exchange Markets

  11. Any relevant topicrelating to the course


TIMELINE:



  1. You should select your topic before the end of week 3, and submit the topic to me with a brief description (two paragraphs) on your paper topic.

  2. In week 4, you must send me 2 pages description on your final paper project. You should have a table of contents, introduction section, and outline the issues you are going to address.

  3. Week 7 you should submit your final paper byFriday, August 7th.

Answered Same DayAug 05, 2021

Answer To: Due Friday, Week 7 Financial Markets and Institutions - Final Project Scope Document The objectives...

Saloni answered on Aug 07 2021
164 Votes
Financial Market & Interest Rate1
FINANCIAL MARKET
&
INTEREST RATE
Table of Content
Abstract……………………………………………………………………………….3
Introduction ………………………………………………………………………….4
Type of Financial Market ……………………………………………………………4
Factors affecting the Financial market ………………………………………………5
Brief Description about Interest Rate …………
……………………………………..7
Research on how interest rate affects the financial market ………………………….6
Learning/ Conclusion ………………………………………………………………..9
Reference ……………………………………………………………………………10
Abstract
An introduction to the different types of financial market and interest rate gives us thorough knowledge about the financial market and institution. A proper knowledge of bonds, derivatives, stock market and commodity will give a clear understanding on how interest rates can affect the different segments. In the current pandemic situation how Federal rates cut will boost the economy. The Fed prepared itself to benchmark rates to zero in response to the growing coronavirus outbreak. Though reduced interests rate has equal negative affect for the economy.
Bank interest rate are relatively higher for the borrowers and low for the savers so when there are high stakes people take a direct path to make investment. Financial market and interest rates reflect how prices and volumes of financial instrument changes over time. A proper analysis of how change of rates in credit market affects the depositors and lenders which is important to control inflation. Control of inflation gives a financial stability and financial integration to the economy.
Introduction
Financial market is a type of marketplace that provides a line for sale and purchase of assets such as stock, derivatives, foreign exchange and bonds. Investors and businesses raise money from capital market to make more money and grow their business.
Type of Financial Markets
1. Stock Market- A stock market or equity market is the collection of buyers and sellers of stocks (also called shares). These include securities listed on a stock exchange publicly as well as those only traded privately. A stock exchange is a place or organization by which stock traders (people and companies) can trade stocks. Companies may want to get their stock listed on a stock exchange. Other stocks may be traded "over the counter" through a dealer. A large company will usually have its stock listed on many exchanges across the world.
2. Derivative Market - These are financial instruments whose value depend on the value of some underlying assets. A derivative emerges out of a contract between two parties and does not have any physical existence . It does not have the any value of its own but its value depend on the value of physical assets called underlying assets.
Types of Financial Derivatives-
· FORWARDS- A forward contract is an agreement between two parties to buy or sell an asset at a future date at a price agreed today.
· FUTURES- A futures contract is a contract to buy or sell a stated quantity of a commodity or a financial claim at a specified price at a future specified date. Value of futures depends upon the price of underlying asset, risk free rate of interest and rate of return expected by the investor.
· OPTION- An option is a contract which provides the holder a...
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