1. The financial assets of the non-bank financial institution sector accounted for 49.2% of the global financial system in 2021, compared to 42% in 2008. The shift from banks to market based finance is likely to grow further globally. This is because half of all financial intermediation globally now happens outside the banking system according to the Financial Stability Board. Besides, 45% of lending to UK companies comes from market-based finance today compared to just 37% in 2006 according to think tank New Financial.

1a) From the above context critically discuss the role of non-bank financial intermediaries in driving the UK economy out of recession.

2. Risk management is the process of identifying and measuring risk and ensuring that the risks being taken are consistent with the desired risks. In essence, market risk is the risk arising from changes in the markets to which an organization has exposure. While the probability of losing money on a business or investment decision is known as financial risk. Considering the current financial turmoil, which have led to a lot of inconsistencies in the markets. In this instance, critically assess the various market and financial risks that company are expose to in the economy.

 3. Economic growth and sustainability remain one of fundamental functions of the central bank. However, the UK economy has been negatively impacted due to the global uncertainty caused by the Russian invasion of Ukraine. Critically discuss various interventionist policies that the Bank of England can deploy for the proper functioning of the economy.

4. Exchange rate risk constitutes one of the most common forms of risk that firms in the international arena encounter and, in recent years, the management of this risk has become one of the key factors in overall financial management. To the credit of the academic community, researchers have kept pace with the increasing importance of exchange rate risk management, as reflected in the intense theoretical and empirical research. Critically discuss impact of various exchange rate risk to the investor.