MN-2502: Financial Institutions and Markets

  1. (a) With reference to examples, discuss the characteristics and consequences of financial bubbles. (15 marks)

 

(b) Discuss the contribution of Minsky’s Financial Instability Hypothesis to our understanding of financial bubbles.                                                         (18 marks)

Don't use plagiarized sources. Get Your Custom Essay on
MN-2502: Financial Institutions and Markets
Just from $13/Page
Order Essay

 

  1. (a) Explain financial intermediation by banks and explain how this helps to mitigate against conflicting requirements of lenders and borrowers. (15 marks)

 

(b) Discuss the contribution of the Diamond model of delegated monitoring to helping us understand why banks exist.                                                         (18 marks)

 

  1. (a) Explain the differences between ordinary shares, preference shares, corporate bonds and government bonds from the point of view of an investor.                                                                                     (10 marks)

 

(b) A company has just paid an annual dividend of £2. The growth rate of dividends for the company is 3% per year. The current share price of the company is £15. What is the required return for shareholders for this share?                                    (6 marks)

 

(c) A bond pays a 3% coupon annually. The par value of the bond is £100 and it has 4 years left until it matures. If yields on similar bonds are 4% calculate the fair price for this bond?                                                                                        (6 marks)

 

(d) Calculate the duration for the bond described in (c)?                  (6 marks)

 

(e) Explain the relationship between the price of a bond and its yield.

(5 marks)

 

 

  1. (a) Discuss the reasons for and against the regulation of banks. (15 marks)

 

(b) Explain the role of the Financial Stability Board.                        (8 marks)

 

(c) Explain the problems with Basel 1 and discuss how Basel 2 addresses those problems.                                                                                              (12 marks)

 

 

  1. (a) Explain the adverse selection problem as it affects lending/borrowing.

(18 marks)

(b) Discuss how and why banks are best able to mitigate the adverse selection problem in lending.                                                                             (15 marks)

 

 

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Home Work Stand
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Human Resources Management (HRM)
I am very pleased with your work and how it was completed in a timely manner. I will be requesting this writer for future assignments. Excellent work!
Customer 452445, June 10th, 2022
Classic English Literature
Wonderful writer. Pay attention to detail. Does not plagiarize. Always completes work on time!
Customer 452445, March 3rd, 2022
Philosophy
I am so pleased with your services Thank you so much for a well-done job with my papers!
Customer 452445, January 12th, 2022
Business Studies
Amazing job on a tight deadline. Met all requirements and some. Will hire again if needed.
Customer 452445, March 3rd, 2022
Health Care
Great work, met all the requirements, and followed all instructions perfectly!
Customer 452445, December 20th, 2021
Classic English Literature
The writer wrote a perfect paper in short amount of time.
Customer 452445, December 14th, 2021
Human Resources Management (HRM)
Writer was cooperative and got me an A on my paper.
Customer 452445, December 20th, 2021
Social Sciences
The write was very patient with my instructions and did their best to provide quality work according to my request.
Customer 452445, November 2nd, 2021
Nursing
Writer was cooperative and got me an A on my paper.
Customer 452445, December 23rd, 2021
Human Resources Management (HRM)
Awesome work! Writer articulates points well which makes it easy to read the essay!
Customer 452445, December 15th, 2021
Human Resources Management (HRM)
Great paper and delivered on time.
Customer 452445, January 27th, 2022
Social Sciences
The formatting was not okay but the paper was great.
Customer 452445, November 2nd, 2021
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Order your essay today and save 15% with the discount code ESSAYHELP