WEEK 9

Financial Markets

Financial Markets in Australia

You will learn about:
Borrowers

• individuals 
• business 
• government

 
Factors affecting the demand for funds

• transactions and speculative motives 
• financial innovations

Lenders
•           individuals
•           business
•           government
•           international

You will learn to:
Examine economic issues:

• examine the contribution of financial markets to the economic welfare of individuals and firms

Apply economic skills:

• analyse the impact of financial innovations on individuals and the economy

WHERE DID IT BEGIN?
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FINANCIAL MARKETS​

1. Download the PPT in the link below.
2. Using the PPT Slides #1-12, create notes on types of borrowers and lenders and the markets they trade in.

Download a copy here:

introduction_to_financial_markets__1_.pptx
File Size:	5476 kb
File Type:	pptx

Download File

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3. Visit the link: "Visualizing the Extraordinary Power of Compound Interest" and explain the significance of compound interest for finance markets. 

4. Read the RBA Explainer "Banks' Funding Costs and Lending Rates". 
5. Using the RBA  Explainer and the PPT, provide responses to the questions on the last two slides of the PPT that accurately explain the role of financial markets.

Banks' Funding Costs and Lending Rates

6. Recap what financial markets create in the economy using the PPT below.