Assignment One FIN402 (1st Term 2024-2025) Due Date: 28/09/2024 @ 23:59 Course N

Assignment One
FIN402 (1st Term 2024-2025)
Due Date: 28/09/2024 @ 23:59
Course Name: Financial Institutions and Markets
Student’s Name:
Course Code: FIN402
Student’s ID Number: S
Semester: First
CRN:
Academic Year: 2024-25
For Instructor’s Use only
Instructor’s Name: Dr. Jyoti Agarwal
Students’ Grade: / 10
Level of Marks: High/Middle/Low
Instructions – PLEASE READ THEM CAREFULLY
This assignment is an individual assignment.
The assignment must be submitted in WORD format only.
Assignments submitted through email will not be accepted.
Students are advised to make their work clear and well presented, marks will be deducted for poor presentation. This includes filling your information on the cover page.
Students must mention question number clearly in their answers.
Late submission will NOT be accepted.
Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
All answers must be typed using Times New Roman font (size 12, double-spaced). No pictures containing text will be accepted and will be considered plagiarism.
Submissions without this cover page will NOT be accepted.

Assignment Purposes/Learning Outcomes

CLO1: Examine the role of the financial system in the economy and the rationale for financial intermediation.
CLO2: Demonstrate an awareness of the variety of financial instruments.
Attempt all Questions Maximum Marks :10

1.Discuss some of the manifestations of the globalization in the capital market of Kingdom of Saudi Arabia (2Marks)
2a. What is a simple loan?(1Mark)
2b. If Ahmed borrows 100SAR from his father and next year his father wants 110SAR back from him ,what is the yield to maturity on this loan? (2Marks)
3. “The more risk-averse people are, the more likely they are to diversify. “Is this statement true, false, or uncertain? Explain your answer(2Marks)
4.Can you think of any financial innovation in the past ten years that has affected you personally? Has it made you better or worse off? In what way?(3Marks)

Answers:
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