MT217M1-1: Explain how financial markets operate and are essential for a healthy economy and economic growth.
GEL-1.03: Demonstrate college-level communication through the oral delivery of original materials in Standard English.
GEL-6.05: Adapt research skills to discover and sort relevant sources to complete tasks.
Making effective financial decisions is determined by how much information one can gather on different markets and their conditions. By using effective research skills, you will be able to identify how a market operates, and you will be able to forecast the sustainability and strength of the economy.
Read through the whole assessment to understand the topics that must be covered in the selection of your article.
There are three parts to this assessment. Parts 1 and 2 will be written in a Microsoft® Word® document. Part 3 will be a PowerPoint® presentation which includes audio. In Part 1, you will look for a scholarly article(s) from the Global Library and write about the process you used in locating the article(s) to help with the assessment. For Part 2, you will be assessed on writing a 500-word informative essay of the article(s) focusing on the questions asked. For Part 3, you will complete a PowerPoint presentation with audio. It is important for you to be able to communicate the details of your research with supervisors or management. Using PowerPoint is one way to communicate your information and to show details of the research.
Part 1: Locate a High-Quality Library Article
You will need to locate one or more scholarly articles from the Purdue Global Library that explain how financial markets operate and are essential for a healthy economy and economic growth. The article(s) should provide you with information to answer Part 2 of your assessment. You will write about the process you went through to locate your article(s), thoroughly covering the topics below.
You must follow the following criteria for your research:
- Explain how your search terms were refined.
- In ProQuest ABI/Inform Collection.
- Limited to “Full text” and “Peer Reviewed”
- Under Source Type, select Scholarly Journals.
- Identify your choice of databases (ProQuest ABI/Inform Collection).
- Identify the range of dates used. (2000-2022)
- Identify the experts. (see resources)
- Identify how you sorted the relevant topics. (Based on the investment types: Investment banks, Commercial banks, Financial services corporations, pension funds, and mutual funds)
- Language: English
- Location: United States
- Database: ABI/INFORM Collection
Locating scholarly articles:
Scholarly articles must be current and of high quality. These include peer-reviewed academic articles, articles published in journals, and other library resources found in the Purdue Global Library.
How to access the ABI/Inform database, selecting peer-reviewed journal articles:
- Locate the Library link from Academic Tools.
- Scroll midway down the page and locate “ProQuest ABI/Inform Collection.”
- Make sure “Full text” and “Peer Reviewed” are checked.
- Enter your key word(s) in the search area and select the search button.
- Under Source Type, select Scholarly Journals.
In Course Documents under Course Resources, you will find an interactive tutorial on “How to Use ProQuest’s ABI/Inform” database to learn more on how to access and search using the database along with additional resources.
Part 2: Research Financial Markets
Write a 500-word informative essay on the article(s), answering the following questions:
- Why are financial markets essential for a healthy economy and economic growth?
- What are financial institutions?
- Describe each and give an example of who may use them:
- Investment banks
- Commercial banks
- Financial services corporations
- Pension funds
- Mutual funds
Note: You may use your textbook as an additional resource; however, the majority of your content must come from your article(s).
Part 3: Research on Markets: PowerPoint Presentation With Audio
It is important to be able to communicate and share with supervisors or management the information received to help determine informed financial decisions. An effective tool to inform and communicate this information is a PowerPoint presentation. Please see the criteria required in the Minimum Submission Requirements tab for the oral delivery of this presentation.
Create your oral presentation by creating a narrated Powerpoint with Speaker notes.
You will create a PowerPoint presentation with audio covering the following topics:
- Explain capital transfers.
- What are the three primary ways in which capital is transferred between savers and borrowers? Describe each one.
- What is a financial market?
- Differentiate between the following markets:
- Physical asset markets versus financial asset markets
- Spot markets versus futures market
- Money markets versus capital markets
- Primary asset markets versus secondary markets
- Public markets versus private markets
Book: Titman, S., Keown, A. J., & Martin, J. D. (2017). Financial Management: Principles and Applications (13th ed.). Pearson Education (US). https://purdueuniversityglobal.vitalsource.com/books/9780134418001
- Chapter 1: “Getting Started: Principles of Finance”
- Chapter 2: “Firms and the Financial Markets”
Resources:
Goldman sachs’ golden touch: Investment bank’s secrets of success. (2007). Strategic Direction, 23(6), 5. doi:https://doi.org/10.1108/02580540710743158
Lian, Y. (2018). Bank competition and the cost of bank loans. Review of Quantitative Finance and Accounting, 51(1), 253-282. doi:https://doi.org/10.1007/s11156-017-0670-9
Bebchuk, L. A., & Tallarita, R. (2022). Will corporations deliver value to all stakeholders? Vanderbilt Law Review, 75(4), 1031-1091. Retrieved from https://libauth.purdueglobal.edu/login?url=https://www.proquest.com/scholarly-journals/will-corporations-deliver-value-all-stakeholders/docview/2709096520/se-2
Hooke, J., Park, C., & Yook, K. C. (2020). Alternative asset fees, returns, and volatility of state pension funds: 0RW1S34RfeSDcfkexd09rT2A case study of the new jersey pension fund1RW1S34RfeSDcfkexd09rT2. The Journal of Alternative Investments, 22(3), 33-41. doi:https://doi.org/10.3905/jai.2019.1.083
Diane, D. G., & Tkac, P. A. (2002). The determinants of the flow of funds of managed portfolios: Mutual funds vs. pension funds. Journal of Financial and Quantitative Analysis, 37(4), 523-557. Retrieved from https://libauth.purdueglobal.edu/login?url=https://www.proquest.com/scholarly-journals/determinants-flow-funds-managed-portfolios-mutual/docview/211958915/se-2
Kaur, I. (2018). Mutual fund investor’s behaviour towards information search and selection criteria: Do knowledge and perception about mutual funds matter? Qualitative Research in Financial Markets, 10(4), 395-414. doi:https://doi.org/10.1108/QRFM-09-2017-0084
McCarthy, D. F. (2015). Hedge funds versus mutual funds (2): An examination of multialternative mutual funds. The Journal of Alternative Investments, 17(3), 26-42,3. Retrieved from https://libauth.purdueglobal.edu/login?url=https://www.proquest.com/scholarly-journals/hedge-funds-versus-mutual-2-examination/docview/1647349315/se-2
