a) Bank Bills
d) Government Securities Section 2 Current Issues- Current Interest Rates a) Explain why nominal interest rates are different to real interest rates?
b) Select one financial institution from each category below and find the interest rate for the products
Record your information in a Table like the one below. Product Major Bank Regional Bank Credit Union other
line of credit
Everyday Access Account
Cash Management Account
60 day fixed deposit
90 day fixed deposit
*make sure you compare home loans that are similar c) Why do interest rates vary between institutions for the same products?
d) Why are different rates offered for different time periods?
Source: http://www.afr.com.au/markets/scorecard.html#9 e) Describe the movement in the Cash rate and the 10 year bond rate shown in the above graph. f) Why are the movements in the Cash rate and the 10 year bond rate different? g) What factors influence the level of Interest rates in Australia?
Section 3 Financial Markets in Australia- From the list of financial markets, choose any one and answer the questions below. Business loan market
Short term money market
Financial futures market
Foreign exchange market What is the role and function of this market?
What are features of this market?
List at least three financial institutions that are involved in the market.
List the primary products bought and sold in the market.
What are the sources of funds used in the market?
Who are the primary users of the market?
How is the market regulated? Section 4 Government Regulators and the Financial markets –
Complete the table below Regulator Prime Purpose key functions /
responsibilities Reserve Bank of Australia Australian Securities and Investments Commission (ASIC) Australian Treasury Council of Financial Regulators Section 5 Short Answer Select a question from either a) How are Interest rates currently set in Australia?
b) Why is the Money Supply important?
c) Explain the role played by the finance market in the Economy. ORDER THIS ESSAY HERE NOW AND GET A DISCOUNT !!!
a) Bank Bills
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