FNSFMKT 501A by suchenfz

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									                     FNSFMKT 501A
            ANALYSE FINANCIAL MARKETS AND
                     INFORMATION

              GROUP ASSESSMENT 2 WORTH 20%

                        LEARNING ELEMENTS 1

This Group Assessment is worth 20% of the student’s assessment for Analyse
Financial Markets & Information FNFMKT 301A

This 800 word report must be completed and handed in for assessment in class
time week 9

Students are to research, read and analyse and answer the following questions in a
report format. The report must be at least 800 words, answers are not to be brief one
line answers they are to be detailed and show a clear understanding of the issues
involved.


QUESTION 1                                    3 + 3 + [(8 + 10 + 7) + 7 + 7] = 45 Marks

It is expected that the Reserve Bank of Australia (RBA) will increase interest rates in
the near future as the Australian Bureau of Statistics reported an increase of.9 percent
in the underlying inflation rate in the June quarter.

   a) What is Australia’s current annual inflation rate? (3 marks)

   b) What annual inflation rate does the RBA find acceptable? (3 marks)

   c) Explain the economic pressures that have contributed to the increased inflation
      rate in Australia. Use the following headings as guides (8 marks)
          a. Commodity prices
                  i. What are the causes of the rises in commodity prices (10
                      marks)
                           1. Local and overseas (7 marks)
                           http://news.smh.com.au/breaking-news-business/rba-
                           commodity-price-index-rises-27-20100901-14n8e.html
          b. Borrowing (7 marks)
                  i. Household mortgages
                    http://www.loveyourproperty.com.au/first-home-buyers/how-
                    inflation-impacts-home-values

           c. Overseas factors (7 marks)
              homepages.tig.com.au/.../The%20Impact%20of%20Globalisatio
              n%20on%20the%20Australian%20E...
QUESTION 2                                                          6 x 5 = 30 Marks

What effect will the increase in interest rates have on the sectors in the economy? Use
the following headings as a guide.
http://www.acci.asn.au/text_files/issues_papers/Interest_Rates/IR03.pdf
http://www.acci.asn.au/text_files/issues_papers/Interest_Rates/IR02.pdf

1. Borrowers of home loans
       a. Current
       b. Future
           http://www.smartcompany.com.au/economy/20100303-how-high-could-
           interest-rates-go.html
           http://www.loveyourproperty.com.au/first-home-buyers/how-inflation-
           impacts-home-values
           http://www.homesales.com.au/news/what-does-the-interest-rate-rise-
           means-for-both-owner-occupiers-and-investors.aspx
           http://money.ninemsn.com.au/article.aspx?id=115263
           http://www.smh.com.au/business/rising-interest-rates-drive-mortgage-
           delinquencies-20100215-nzrp.html
           http://www.australianreview.net/digest/2000/07/bryan.html
           http://www.cam.org.au/news/rising-interest-rates-impact-low-income-
           households.html
2. Wages
   http://www.loveyourproperty.com.au/first-home-buyers/how-inflation-impacts-
   home-values
   http://www.wages.com.au/news/2009/4/14/forecasting-wages-growth-and-the-
   impact-of-inflation-part-one/
   http://www.wages.com.au/news/2009/4/14/forecasting-wages-growth-and-the-
   impact-of-inflation-part-one/
3. Employment levels
   http://www.acci.asn.au/text_files/issues_papers/Interest_Rates/IR02.pdf
4. Retailers
   www.anra.com.au/_literature_60079/070110_november_retail_figures
   http://www.qbr.com.au/news/articleid/69570.aspx
   http://www.propertyoz.com.au/Article/NewsDetail.aspx?p=56&mid=1669
5. Manufacturers
   http://www.acci.asn.au/text_files/surveys/Survey_of_Investor_Confidence/survey.
   pdf
6. Rural
   www.nff.org.au/get/2482782290.doc
QUESTION 3                                   5 + 5 + 5 + 5 + 5 = 25 MARKS

   a) You are to research Australia’s inflation rate for each of the years from 1998-
      2008 and present your findings in a bar graph
      http://www.rateinflation.com/inflation-rate/australia-historical-inflation-
      rate.php

   b) You are to research the unemployment rate for each of the years from 1998-
      2008 and present your findings in a pictogram
      http://www.tradingeconomics.com/Economics/Unemployment-
      Rate.aspx?Symbol=AUD

   c) You are to research Australia’s interest rate levels from 1998 -2008 and draw
      a line graph
      http://www.loansense.com.au/historical-rates.html

   d) You are to research Australia’s economic growth rate for each of the years
      1998-2008 and present your findings in a line graph
       http://www.abs.gov.au/AUSSTATS/abs@.nsf/Lookup/1383.0.55.001Main+Features1
       32009

   e) Using the above information draw a business cycle showing the period from
      1998 to 2008.
      http://www.melbourneinstitute.com/research/macro/bcchronology.html

      Any Economics Book from the library
      Search Engines
      www.rba.gov.au Reserve Bank of Australia
      www.treasury.gov.au Commonwealth Treasury
      www.finance.gov.au Department of Finance & Administration
      www.abs.gov.au Australian Bureau of Statistics
      Class notes

Please read the instructions below carefully before commencing this report.

      The university regards plagiarism as a form of academic misconduct, and has
       very strict rules regarding plagiarism. For full information regarding policies,
       penalties and information to help you avoid plagiarism see:
       http://www.vu.edu.au/library/pdf/Plagiarism%20Guide.pdf
      Brief description or copied from the resource will earn approximately ¼
       marks. For full marks explanation must be clear, concise and understandable
       language (own words) not copied and not copied with some change in words
       this is still plagiarism

								
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