Assignment:
Write a paper, describing how businesses, government units, institutional investors, and individuals participate in money, stock, and bond markets, and equity securities. Describe the roles, functions, and differences between the markets. Include a brief summary of how each market works.
GLOBAL FINANCIAL STABILITY:
Objectives for the Week:
- Identify reasons for growth of U.S. banking operations overseas.
- Explain how the interdependence among international economies and financial markets contribute to global financial stability.
- Evaluate the opportunities and challenges faced by financial institutions within the international financial system.
What You Already Know:
In Week Four, students were introduced to money markets, bond markets, and equity securities. Concepts regarding the many risks on these transactions, such as low default risks and high marketability were discussed. Students gained an in-depth perspective on how the different participants, such as private businesses or individuals, use the different markets for financial transactions. The role of bond markets and equity securities was also presented. These concepts, combined with the previous weeks', have provided students with a solid foundational understanding of domestic financial institutions and markets, allowing students to move into this final week of global financial applications.
This Week in Context:
During the final week of this course, students will be combining the prior weeks' concepts and integrating concepts of international finance to produce a more complete understanding of financial institutions and financial markets as it applies to global perspectives. Students will gain knowledge regarding the specific risks unique to international trade, such as foreign legal systems and incomplete or unreliable credit information. Additionally, students will learn the reasons behind the sudden growth in overseas banking during the 1960s and how government regulations affect that growth. Students will also revisit the role the Federal Reserve board plays in global finance. These concepts are important because financial managers must have an understanding of the benefits and risks of international finance to make responsible and competent financial decisions.
Assignment Overview:
In the individual assignment due this week, students choose a topic and explore that topic's relationship to overseas banking growth, interdependence among economies and financial markets, and the influence interdependence has on global financial stability. Additionally, students are able to participate in activities and discussions that deepen their understanding of the interconnectedness of financial institutions and financial markets.
The Learning Team assignment due this week allows the teams to demonstrate understanding of money, bond, stock, and equity security markets and how individuals, government units, and businesses interact and participate in those markets. Teams display those concepts in a visual form using Power Point®.