Financial Institutions and Markets

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Assignment 1 FIN402

Deadline:

Course Name: Financial Institutions and MarketsStudent’s Name:
Course Code: FIN-402Student’s ID Number:
Semester: 1st  CRN:
Academic Year: 1443/1444 H, 1st Term

For Instructor’s Use only

Instructor’s Name:
Students’ Grade:   /10Level of Marks: High/Middle/Low

Instructions – PLEASE READ THEM CAREFULLY

  • This assignment is an individual assignment.
  • Due date for Assignment 1 is (02/10/2022)
  • The Assignment must be submitted only in WORD format via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

Submissions without this cover page will NOT be accepted.

Assignment Purposes/Learning Outcomes:

After completion of Assignment-1 students will be able to:

LO1.Demonstrate an awareness of the variety of financial instruments.

LO2. Examine the role of the financial system in the economy and the rationale for financial intermediation.

LO4.Compare and contrast the role of and function of organized financial markets and financial intermediaries

LO 5. Demonstrate the connection between interest rates and asset prices.

Assignment Questions:                                                   (10 Marks)    

Students must use proper references to justify their assignment work. 

The Assignment questions are as follows:

  1. Suppose Lina wants to start her new business for producing organic products, but she has no money to start her business. Suggest her two different funding options and their functions. So Lina can get the funds easily to run her business. (3 Mark)
  •  Suppose you are interested in buying your dream Sports car after one year from now. You estimate that the car will cost $40,000. If your local bank pays 5 percent interest on savings deposits, how much money will you need to save in order to buy the car as planned? (2 Mark)
  • Distinguish between primary markets and secondary markets with the help of suitable examples. (3 Marks)
  • Explain the phrase with an example “a dollar today is worth more than a dollar tomorrow.” (2 Mark)

Answers: