Financial Intermediation and Markets: A Critical Discussion

Formative and Summative Assessments

All assessments are designed to support your learning and help you develop a deeper understanding of the topics covered in your module.

• Formative assessment provides an opportunity to learn and do not contribute to your grade.

- Individual report draft outline submission without word limit. Students can make a draft or descriptive outline, an outline that is based on your first draft of the individual report. It describes each paragraph in your draft so that you can critique your organization. Feedback will be provided within 2 weeks. Formative assessments provide an opportunity to learn and receive feedback on your first draft of the individual report and do not contribute to your grade.

- Formative Assessment Submission Deadline: Teaching Week 9, Friday

• Summative assessment contributes to your overall mark and grades.

- Summative Assessment Submission via Weblearn, ‘Online Submission’. The performance of students is assessed by the assessment methods as appropriate to the level and learning outcome of the assessment protocol. The individual coursework assignment constitutes 100% of the assessment for this module. Students are required to write an individual report on the following questions:

Question 1:

Critically discuss the functions of financial intermediation and its relationship with financial markets, such as pros/cons.

Question 2

Critically discuss the problem of adverse selection created by asymmetric flow of information. Use an example to illustrate your answer.

Question 3:

Discuss whether the role of financial intermediation facilitates economic growth by given a country as an example.

Question 4:

Discuss the motivations of investing in stock market and whether investing stocks is a riskier investment than bonds. Explain your answer.

Question 5:

Discuss the relationship between bond prices and yields. Use an example/real data to illustrate your answer.

Question 6:

The efficient market hypothesis is often referred to in financial markets. To test this hypothesis, which states that prices of securities fully reflect all available information, market participants eliminate unexpected profit opportunities. Explain what the market participants are referring to. How are they benefitting from it? Does the efficient market hypothesis, and optimal forecast, apply to this situation?

It is recommended to write your report with the structure of:

• Cover Page with your student ID, Module Code and Name, Date for Submission, Word Counts

• Main Body used for answering these questions

• Evidence of understanding of relevant concepts;

• Critical application of theory;

• Demonstration of analytical independent thinking;

• Evidence of research;

• Use of relevant examples to support the argument;

• Collection and sound use of relevant information;

• A coherently structured argument;

• Well supported conclusions;

• A sound professional quality presentation

• Submission of coursework must be electronically online on Turnitin Assessment System, available on Weblearn.

• The essay will require students to use information from academic literature to demonstrate understanding of major conceptual and practical problems.

• As should be obvious from the above, there is a requirement for you to research, collect, present and analyse actual data. Sources of information must be included and referenced in your discussion as well as the date obtained.

• Points and/or arguments presented and made should be substantiated with data/evidence. I am interested in your own views but it should be clear through the referencing system whether they are personal or evidenced by the views/data of others.