Textile Industry

MSc. Accounting and Finance
ACC 5231 FINANCIAL MARKETS AND INSTRUMENTS
TERM PAPER MARCH, 2012
Discuss the essence, development and the role of the following financial institutions, markets or instruments at the international and local context. Your discussion need to be supported by relevant references from at least 10 articles, reading material and/or books. 1. Equity markets 2. Financial intermediaries 3. Central banks 4. Non depository financial institutions 5. Commercial banks 6. Investment banks 7. Cash and cash equivalents 8. Mortgage institutions and markets 9. Insurance companies 10. Pension funds 11. Unit trust funds 12. Venture capital Funds 13. Microfinance institutions 14. Dar es Salaam stock exchange 15. Capital Markets and Security Authority of Tanzania 16. Capital markets 17. Treasury Bills market 18. Government Bond market 19. Commercial paper market 20. Corporate bond market 21. Mutual funds 22. Stock options markets 23. Financial Swaps markets 24. Financial Future markets 25. International bonds markets 26. Interests rates futures contracts markets 27. Instruments for hedging foreign exchange risks 28. Forward contract 29. Stock markets dealers and brokers 30. New issue markets 31. Agricultural banks 32. Financial derivatives 33. Credit rating 34. Credits cards 35. Valuation of money markets securities 36. Valuation of bonds 37. Asset management firms 38. Merchant banks 39. Savings and Cooperative societies

SET TWO OF TERM PAPER QUESTIONS 40. Discuss the significance of credit rating agencies/ institutions and show the instruments rated and the procedures involved 41. Discuss the extent to which fundamental analysis facilitates the identification of corporate shares into growing, stagnating and declining companies or industries. 42. Show how technical analysis and Chartism methods are used to make buying and selling decisions of shares. 43. What is the difference between active stock investment strategy and passive strategy? If you were an investment manager of NSSF –Tanzania what strategy would you use and why? 44. Pension funds and life assurance companies invest more in treasury bonds and commercial banks invest more in treasury bills. Do you agree with this statement? Discuss with examples. 45. In the context of Tanzania assess the development of primary markets and secondary markets for financial instruments/securities. 46. Discuss the concept of interest rate and structure of financial assets in Tanzania. To what extent are interest rates affecting the participation of both rural and urban poor households in financial markets? 47. Discuss the pros and cons of government controls on foreign exchange rates 48. If you are a banker and expects interest rates to rise in the future, would you want to make short term or long-term loans? Critically discuss 49. Banking industry has become a more dynamic industry because of more active liabilities managements. Is this statement ‘true, false, or uncertain? Explain. 50. Inflation is undesirable phenomena in economic activities. Discuss how inflation affects financial markets. 51. Distinguish between adverse selection and moral hazards as they relate to banking and insurance industry 52. What do you understand by financial rate of return? What are the basic objectives of the interest rate policy of the government of Tanzania in this direction? 53. Trace out the development of the financial system in Tanzania 54. In spite of suitable legislative measures, the Tanzanian financial system remains weak. Prove a critical discussion on this statement. 55. Discuss the features of a developed money markets and developing one. Use examples from U.S. Context and Tanzanian context. 56. Discuss the methods of trading in the DSE ( Dar stock exchange) and compare with the Nasdaq stock exchange. 57. Mutual Funds provide stability to share prices, safety to investors and resources to prospective entrepreneurs. Discuss 58. Discuss the present state of mutual funds in Tanzania and outline the causes for their slow growth 59. Define securitization of debts and show how it works. Discuss the structure for securitization and recommend for the structure suitable to Tanzanian context 60. Distinguish the various kinds of financial derivatives and bring out their features. 61. Distinguish between Forwards and futures contracts. In your view why are there instruments not developed in Tanzania. 62. Discuss how the open market operation implemented by BOT in Tanzania context 63. What is monetary policy? Discuss the goals of monetary policy and the extent to which such goals are realized in Tanzania context. 64. Discuss the role of international financial institutions such as the International Monetary Fund, World Bank, Bank of Africa and others. 65. Discuss the significance of having a single currency in regional economic co operations such as the East Africa Community, European Union, and others. 66. Discuss the extent to which Risk and Term structure affects Interest rates of financial instruments? 67. Discuss why do interest rates of Bonds change over time. Give examples in Tanzania Context. 68. Distinguish mortgage markets from other capital markets? 69. Discus the factors hindering the development of mortgage markets in Tanzania 70. What are foreign exchange markets?. Discuss the factors that affect exchange rates in the short run and long run. 71. Explain why foreign exchange rates are so volatile?. Explain why the Tanzania shillings exchange rate against the U.S. dollar and U.K. Sterling Pound has fluctuated significantly over time? What should be the remedy? 72. A country is always worse off when its currency is weak (fall in value). Is this statement true, false, or uncertain? Explain with examples. 73. Discuss the development in the international financial systems. Discuss the main exchange rate regime in the international financial systems. 74. Discuss the extent to which financial development and economic growth are related. Give examples in Tanzania context. 75. Discuss the essence, extent and remedies of the global financial crisis of 2008/2009 at the international and Tanzanian context?