Page 39 - Microsoft Word - 00 BA3 IW Prelims STUDENT.docx

Chapter 3

Financial context of business – I

Outcome

By the end of this session you should be able to:

 explain the role of various financial assets, markets and institutions in assisting
organisations to manage their liquidity position and to provide an economic
return to providers of liquidity

 explain the role of commercial banks in the process of credit creation and in
determining the structure of interest rates and the roles of the 'central bank' in
ensuring liquidity

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 3 of your Study Text

33