A Gentle Guide to Financial Markets
In the simplest sense the discipline of Finance is concerned with the process of raising or providing funds and capital. It focuses on the ways in which individuals, businesses and organizations procure, distribute and employ financial resources generally. As such it is concerned with the careful balancing act that entities enter into in employing their scarce financial resources. Financial sector professionals moderate and manage the risk and liquidity issues inherent in the personal, commercial and government projects.
CHAPTER I � Introduction to financial markets
Why study finance?
A short introduction to financial markets
Types of financial market
Financial Institutions
BANK ADIs
Non-Bank ADIs
FINANCE COMPANIES
SECURITISERS
Superannuation funds
MERCHANT/INVESTMENT BANKS
Financial Instruments
Debt based instruments
Equity based instruments
Derivative Instruments
Central banks and monetary policy, theory and practice
Monetary Policy
The tools of monetary policy
Introduction to open market operations
The Board of the Reserve Bank of Australia
An introduction to coinage and currency
Coin and Currency Distribution
Concluding remarks
Chapter I - Questions & Discussion points
Key Issues & Discussion points
Chapter 1 Essay Questions
CHAPTER II � Intermediate Financial Mathematics A
PART A - SIMPLE INTEREST AND DISCOUNT
Understanding Interest
Simple interest calculations
Ordinary and exact interest
Methods of counting time
The six percent method of computing ordinary interest
Present value and true discount
Summary and extension
Comparison of simple interest and simple discount rates
Rates of interest corresponding to certain discount rates in the terms of settlement
Comparing/Exchanging debts
Finding the date when the various sums (debts) due at different times be paid in one sum
To find the equated date of an account
Chapter II Questions
CHAPTER III � Intermediate Financial Mathematics B
PART B - COMPOUND INTEREST AND COMPOUND DISCOUNT
Compound interest
Compound interest formula
Nominal and effective rates of interest
Present value at compound interest
Equation of value
Equated time
Compound discount at a discount rate
Summary of interest and discount concepts
Chapter III � Questions
CHAPTER IV - Introductory Statistical methods
Statistical methods, a general primer for finance
What are statistics?
Data & data units
Data sources
Sourcing data directly
Sourcing data indirectly
From data to variables
Types of variables
Population and population parameters
Understanding data frequency
How are relative frequencies expressed?
Measures of central tendency
What is the mode?
What is the median?
What is the mean?
Shape and the distribution of the data � symmetry versus skewness
Kurtosis of the distribution
The impact of outliers
Frequency distribution
Types of probability distribution
Measures of spread
Calculating the range
Calculating the quartiles and inter quartile range
Calculating the standard deviation and variance
Data collection error estimates
How do we measure error?
What can measures of error tell us?
Data visualisation
Box and whisker plots
Scatterplots
Data analysis and interpretation
Conducting sound analysis
Determine appropriate analytical techniques and undertake data analysis
Graphical analysis
Summary statistical measures
Assess the results of analysis against the objectives and expectations
Chapter IV Questions
Chapter V - Banking and Deposit Taking with Australia and the U.S.
The Australian Banking Sector and the Authorised Deposit Taking Institution segment
Brief History
Core functions of a Bank
Settlement within the payments system
Credit quality enhancement
Sources and Uses of Funds
Banking products & Services
Key issue in banking - Asset Securitization
Major Banking Sector Entities
The Australian Banking sector and its 'Pillars'
Banking sector competition
Foreign owned banks
Credit Unions & Building Societies
Australian Sector Regulation
The U.S. Banking Sector and the Authorised Deposit Taking Institution segment
Introduction
Regulation of U.S. Depository Institutions in a Historical Context
The National Bank Act of 1863 and the Creation of the "Dual Banking System"
The Federal Reserve Act of 191334
The Great Depression Legislation
The Bank Holding Company Act of 1956 and Savings and Loan Holding Company Act of 196735
The Savings & Loan Crisis and Related Legislation
The Gramm-Leach-Bliley Act of 199937
Commercial Banks
Bank Holding Companies and Financial Holding Companies
Thrifts
Credit Unions
Industrial Loan Companies
U.S Sector Regulation
Office of the Comptroller of the Currency
Office of Thrift Supervision
Federal Reserve
Federal Deposit Insurance Corporation
National Credit Union Administration
The Regulatory Process
System of Controls and Regulations
Consumer Protections
Coordination
Pricing Simple Banking Sector Instruments
The pricing of Certificates of Deposit
The Present Value of a loan installment (Amortising Loan)
The Face Value of a Bank Bill (Bill of Exchange)
Price of a Bank Bill (Bill of Exchange)
Chapter V Questions
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