2 of 3 Financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand (8 marks) Is liberalization of financial markets good for economy? a. (7 marks) b. Discuss the development of global financial market 6 marks) . Explain three factors of a bond that influence interest rate. d, One year interest rates over the next six years are expected to be 7%, 5%,6%, 7%, 8% and 7%, what are the interest rates on a two-year bond and six-year bond? (4 marks) Bank Negara Malaysia (Central Bank) has played important roles for Malaysia development. (10 marks) Discuss the roles of Bank Negara Malaysia (Central Bank). a. b. Critically evaluate and discuss whether Bank Negara Malaysia should be (10 marks) Explain Fiat money and its application to modern banking system. (5marks) c. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. What is financial crisis? (3 marks) a. b. Discuss six (6) factors of financial crisis which had occurred in the emerging (12 marks) market Continued RB 2/3 2 of 3 Financial market is a market in which people trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand (8 marks) Is liberalization of financial markets good for economy? a. (7 marks) b. Discuss the development of global financial market 6 marks) . Explain three factors of a bond that influence interest rate. d, One year interest rates over the next six years are expected to be 7%, 5%,6%, 7%, 8% and 7%, what are the interest rates on a two-year bond and six-year bond? (4 marks) Bank Negara Malaysia (Central Bank) has played important roles for Malaysia development. (10 marks) Discuss the roles of Bank Negara Malaysia (Central Bank). a. b. Critically evaluate and discuss whether Bank Negara Malaysia should be (10 marks) Explain Fiat money and its application to modern banking system. (5marks) c. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these panics. What is financial crisis? (3 marks) a. b. Discuss six (6) factors of financial crisis which had occurred in the emerging (12 marks) market Continued RB 2/3