BAFN205 Financial crisis due to COVID-19 Assignment Sample

• Subject Code : BAFN205
• Subject Name : Accounting and Finance

Financial Instruments and Institutions - Task 1

The cash market is defined as the process of lending and borrowing funds between banks overnight. The price in these markets is classified as the interest rate on the loans they processed. The interest rate is normally represented as cash rate in Australia. Since the Reserve Bank normally sets the target for the cash rate and this term is often called as the influential factor of monetary policy. During the Covid 19 period, it is found that the economy is down in all countries. The cash rate influences other interest rates that normally affects the economy behavior and also the intention of borrowers and lenders which in turn affects the rate of inflation

The contribution to GDP growth from the Government seems to be high followed by Exports and Imports. According to RBA, the state final demand seems to be high in WA when compared to that of New South Wales and Victoria states.

In order to overcome this rare economic crisis, the Bank has adopted an inflation target which helps to hold the consumer price inflation to about 2 to 3 percent in the economy and this will certain help the government to overcome from this issue

Financial Instruments and Institutions - Task 2

Scatter plot was normally used to determine the relationship between the two continuous variables. For positive relationship, the graph move upwards and negative relationship the graph move downwards. The strength of the relationship depends on the points that are closely packed or move wide away

The value at risk is normally used to calculate the maximum expected loss (normally considered on the scenario of worst case) that normally happens during an investment for a particular period of time and with a given degree of confidence and these are called as structural risk

On looking deeply into the graph, we see that there exists a negative relationship between daily value at risk and Actual profit and loss. Thus, when the daily value at risk increases, then the actual profit and loss decreases significantly. That is, the risk of loss is high when there is an increase in the daily value at risk in the trading. Daily value at risk position reports are normally generated by using the factors like risk type, production lines and also by geographic location

References for Financial Instruments and Institutions

Johnson, R. B., and Onwuegbuzie, A. J. (2004). Mixed Methods Research: A Research Paradigm Whose Time Has Come. Educational Researcher, 33(7), 14-26.

Brown, B.J. & Baker, S. (2007). Philosophies of research into higher education, Continuum International Publishing Group, London.

Paterson M and Pentland W (2008). The Use of Hermeneutics in a Mixed Methods Design. The Qualitative Report, 13(1), 116-134

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