TO THE FLOW OF FUNDS
3.1 Primary market processes
3.2 Secondary markets
3.3 The behaviour of market prices
3.4 Volatility and market risk
Explain how the flow of funds is arranged through
Chapter 5: Authorised deposit-taking institutions
1. ADIs accept deposits and make loans.
While deposit taking and lending are the traditional activities of ADIs, some concentrate on the
provision of these services and others concentrate
Chapter 1: Overview of the financial system
1. Australia went through a process of increasing regulations on the financial system in the 1980s.
Deregulation in the 1980s removed many regulations on banks and financial markets and contrib
Chapter 4: Funds management
1. Fund managers arrange the collective investment of (mainly) retail investments.
The fund manager manages the funds on behalf of investors/contributors.
2. Funds management
Chapter 10: The share market
1. The ASX was formed from the amalgamation of the state-based exchanges.
This occurred in 1987.
2. The ASX is the Australian Stock Exchange Limited.
This was the pre
Chapter 9: Shares
1. The financing decision is a firms decision about which assets or projects it will invest in.
The financing decision is a firms decision about how assets are financed, such as the amount of debt
used relative to equit
Chapter 2: The payments system
1. Barter is a system of exchange in which items (or services) are exchanged for each other.
This system requires a coincidence of wants in order for an exchange to occur.
Chapter 3: Introduction to the flow of funds
1. In the financial markets, surplus and deficit units deal directly with each other without any assistance
from financial institutions.
Deficit units are generally assisted by investment bank
Chapter 7: The money market
1. The money market facilitates direct financing in wholesale amounts.
Issuers of securities include banks, non-financial companies and governments. Investors include banks
and institutional investors.
Chapter 6: The stability of deposit-taking institutions
1. Banks may face losses as a result of events that are beyond their control.
They need to have adequate equity funds to cover unexpected losses and have access to funds should
MySuper is part of the Stronger Super reforms announced in 2011 by the Julia Gillard-led government
for the Australian superannuation industry. From 1 January 2014, employers must only pay default
superannuation contributions to an authorised MySuper p
THE MONEY MARKET
The role of the market
Money market securities
Trading and settlement arrangements
Short-term interest rates and monetary policy
Identify and explain the contributions of the money m
Your employer's contributions
If you're eligible, your employer will also contribute to your KiwiSaver savings.
Compulsory employer contributions
If you're a KiwiSaver member making contributions from your pay, your employer also has to put money
FINA313/413-16B ASSIGNMENT 1
(Due at 5: 00 pm, Friday, 19th August, 2016)
1. Submit a word document via Myweb by the due time (for section 2, mathematics
can be typed in word; but if you prefer hand-writing, scanning or photocopying is also
THE PAYMENTS SYSTEM
The retail payments system
The wholesale payments system
Management of ES funds by ADIs and the RBA
Present an overview of Australias payment system
Describe the main reta
Chapter 8: The bond market
1. Most bonds pay a series of coupon payments and are redeemed on their maturity date by the payment
of their face value.
There are many types of bonds but these are the features of a standard bond.