MGMT 3049 TUTORIAL QUESTIONS 2011 1.

The role of the financial system in a market economy is to effectively and efficiently move funds from surplus budget units to deficit budget units. However, in the absence of well functioning financial intermediaries this transfer of funds may be severely retarded. Discuss. 2. Compare and contrast the causes and evolution of the US Banking Panic of 1933 to the Sub-Prime Mortgage Crisis of 2008. 3. Sleeping Beauty Bonds assignment. 4. Bond Valuation Problem set. 5. Brief of US Debt Market Reading 6. Discuss and evaluate the major theories evaluating the shape of the yield curve. In your answer also discuss the uses of the yield curve in financial markets, why strips are used in the construction of yield curves, and why investors would want to invest in zero coupon bonds. 7. Discuss and critically evaluate the Efficient Market Hypothesis. What are the implications of market efficiency for technical analysis and subscribing to investment advisory services? 8. Critically evaluate the contribution of four financial intermediaries of your choice, to the effectiveness and efficiency of the financial system. 9. Compare and contrast the nature of the assets and liabilities, and by extension the major sources of risk, for four financial intermediaries of your choice. 10. Discuss and critically evaluate the major factors shaping the development and evolution of retail financial services around the world. 11. Construct Option payoff diagrams for Lotus and ATT stocks.