Answer all questions. Q.1 (a)Explain the operation and activities of the stock exchange market in an emerging market/country of your own choice (for example Chinese market). (20 marks) (b) With close reference to the relevant theoretical and empirical literature and relevant financial data critically evaluate the efficiency of your chosen stock exchange market. (20 marks)
Q.2 (a) Explain the key functions and operations of the Eurodollar Market. (10 marks) (b) Why has this market been useful for the conduct of the international transactions? (10 marks) Q.3 (a) Distinguish between the operations and activities of the capital and the money markets. (10 marks) (b) Explain why there is a need for both types of financial markets. (10 marks) Q.4 (a) Explain the operations of the spot and the forward foreign exchange markets. (10 marks) (b) Explain how forward foreign exchange rate might be determined in practice. (10 marks)
Guidance and Preparation Note:
Each question should be answered with reference to the key published academic literature and relevant research in the field. General Notes: 1. For Q.1 you need to review carefully key academic literature, choose a case study, collect relevant financial data, and combine theory with evidence within the framework of your chosen stock exchange market to arrive at a conclusion. Normally this process can be done within a 1500 word limit plus an appropriate appendix to include details of your case study and relevant financial data analysis. 3. Q.2, 3, and 4, each does require a focused answer, both parts, using appropriate academic references.
Assessment Criteria 1. Evidence of background reading and relevance of the material to the question posed. 2. Appropriate use of Harvard referencing system. 3. Depth of analysis based on relevant literature. 4. Appropriate conclusion based on relevant evidence provided.
Dr. H .R .Seddighi Module