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Chapter 12

Financial markets and the treasury

function

Outcome

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

 identify the nature and role of capital and money markets, both nationally and
internationally

 explain the role of financial intermediaries

 explain the main functions of a stock market and of a corporate bond market

 describe the role of the money markets in providing short-term liquidity to
industry and the public sector and in providing short-term trade finance

 describe the role of the money markets in allowing an organisation to manage
its exposure to foreign currency and interest rate risk

 explain the role of the banks and other financial institutions in the operation of
the money markets

 explain the characteristics of interest-bearing and discount instruments and their
use in the money markets

 explain the characteristics of derivatives and their use in the money markets

 discuss the pros and cons of centralised treasury management and control

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can
be found in Chapter 12 of your Study Text

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