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Financial Market products

Financial Market products . Read through sheet as a class and fill in blank words The Syllabus requires you to know: Consumer credit Housing loans Business loans Short term money market Bond market, financial futures and foreign exchange. . Lets test our Understanding.

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Financial Market products

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  1. Financial Market products • Read through sheet as a class and fill in blank words • The Syllabus requires you to know: • Consumer credit • Housing loans • Business loans • Short term money market • Bond market, financial futures and foreign exchange.

  2. Lets test our Understanding... • Green you agree with the solution • Red you disagree with the solution

  3. Match the financial product to the Situation... • A parent is slightly low on cash at Christmas, but still wants to buy a range of presents for the family • Solution: The parent should make use of a credit card as a credit card allows the parent to pushase goods and services in advance of an actual payment. However the parent should be mindful that credit cards have an interest rates generally between 9 and 18 percent.

  4. Telstra needs to borrow $10 million for 72 hours Soltuion:Telstra should take out a businesses loan, that would allow Telstra to expand levels of production. Telstra would borrow the funds from a finance company or even bank. Correct answer: Merchant bank.

  5. A small business wants to finance the purchase of a new company car Solution: The business could make use of the short term money market, which brings people together with a shortage of funds or a surplus of funds. The business could also seek a short term business loan.

  6. Jim and Barbara want to pushase a their first home. They have $30 000 saved already Solution: Jim and Barbara could make use of a merchant bank as their loan will be a substantially large loan. Correct answer:Hosuing loan, offered by banks as well as mortgage originators.

  7. Jayce wants to invest money in Dubai, as Jayce has noticed increased levels of development in Dubai. • Solution: The foreign exchange or forex market

  8. Homework • Continue working on media diary find an article relating to financial market products • Work on media diary if finish early and check workbooks • Homework task: Investigate the level of competition in Australian financial markets (10marks)

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