Identify the flow of funds in an economy and explain how fintech can be used to take advantage of the flow.

Answer Outline:

 Theory - Flow of funds , explain the concept of fintech

Research-How fintech can be used to take advantage of the flow- write about the uses

and applications of fintech in the context of flow of funds pros and cons

Innovative idea-Come up with a novel idea that involves the use of fintech to take advantage

 of the flow of funds.

2.Describe how central banks are preparing to embrace cryptocurrencies.

Background-The concept of crypocurrencies, What were the attitudes of central banks towards crypotocurrencies in the past

The Status quo (existing state of affairs)-How are central banks are looking to embrace cryptocurrencies? State examples and describe how centrals banks in some countries are working towards embracing cryptocurrencies.

Innovative aspect-Assess and evaluate the feasibiltity, pros and cons of a Central bank of a country adopting the idea of CBDCs (Central Bank digital currencies)/Cryptocurrenies in a country in which they it not yet adopted/not yet planned to be adpopted.

3.Explain how the financial markets will accommodate for the stimulus package.

Hint: Check all the financial institutions and explain how for example central bank will buy govt securities.

Theory-Finacial Markets, Primary and secondary markets, money and capital markets, DSUs and SSUs, flow of funds,

different types of financial institutions

Research-Different Instruments used by the Government(s) (Countries) during the corona virus crisis.

Application-Pricing these instruments, providing intersest rates, other details.

4. What is the shape of the current yield curve for UAE, Australia, Europe, US and China? Explain the reasons for 

 for these shapes.

Answer Oultine:

Theory-Level of Interest Rates, Determinants of Interest Rates, Term Structure of Interest Rates, Graphs, Explanation of yield curve shapes, Determinants of interest rates, Determinants of Yield curve shapes

Research-Data for maturities and yields for atleast 5 different countries. Data table and graph on excel.

Application-Explain the shape of the curves in the respective countries, reasons, projections

5.Explain how you will trade bonds in the OTC market during a crisis period. You should talk about the back office processes such as transaction log and a summary of transactions.

Answer Outline:

Theory-Trading of Bonds, OTC bond marketsProcessProcedures , transactions logs, summary of transactions , quotations.

Innovative aspect-Bond trading during a crisis period (The corona virus pandemic) what kind of bonds should

you look to invest in? Which sector?