Explain the role of financial intermediaries and discuss the ways in which they benefit the overall economy.

1. Each student should attempt all of the following questions. The finished work must be submitted electronically through Turnitin. All steps regarding electronic submission can be found on this module site in Moodle.

Deadline for assessment is 15th December 2016

All questions must be attempted
1. Explain the role of financial intermediaries and discuss the ways in which they benefit the overall economy. (300 words and 350 words for FN5003T)

2. Explain the key functions of the Bank of England. What are the four major functions of the Federal Reserve? (200 words and 250 words for FN5003T). Discuss the ways in which the Federal Reserve use open market operations, discount lending and changing the bank reserve requirement levels to influence the economy. (1100 words and 1250 words for FN5003T) Explain why the 2007-08 financial crisis caused concerns about systemic risk. (200 words and 250 words for FN5003T)

3. What are the major types of assets and liabilities for commercial banks? Explain the alternatives that a commercial bank has if it needs temporary funds. (300 words and 350 words for FN5003T)

4. Explain how mortgage backed securities contributed to the recent financial crisis? (300 words and 350 words for FN5003T)

5. How does the primary function of an insurance company compare with that of a depository institution? How can you use life insurance and annuity products to create a steady stream of cash disbursements and payments so as to avoid either the payment or receipt of a single lump sum cash amount? (300 words and 350 words for FN5003T)
6. Discuss the ways in which investment banks help companies wishing to raise finance. (300 words and 350 words for FN5003T)

Your work must contain at least 15 in-text references


FIRST CLASS MARK (70% and above)
-Evidence of uniqueness in the selection of a topic
-Excellent coverage of the question/topic with inclusion of your own ideas
– Your work follows a well- guided structure and the discussion is systematic with appropriate synthesis throughout your work
-Evidence to show that you have read a wide range of material on the subject matter.
-Both in-text referencing and end of list references are correctly laid out

Learning outcomes evidenced by this assignment

1. Distinguish the key functions of a financial system and to identify the comparative merits of intermediation by institutions and markets

2. Classify financial products by their risk/return characteristics

3. Identify, retrieve and analyse major sources of financial information and to prepare a report on recent developments in a selected area of the financial system

4. Organise and participate in the group research activity necessary for (3) and to organize and make a public presentation of the draft contents of the report and prepare a final report, incorporating the outcomes of (5).

5. Show transferable skills of communication, problem solving and originality to handle real world financial transactions.

The assignment instructions below provide more details of what your submission should include.