Please find bellow the questions for the first assignment. This is an individual assignment and although I encourage you to discuss it with classmates, you are expected to submit your work individually before the deadline. All essay questions should be written in your own words and appropriate references made where needed. Please follow the guidelines (e.g. word count) where appropriate and as much as possible. You are expected to submit all of your answers in one file prior to the stated deadline in a Word document.
Q1. Describe and explain the characteristics of the money market instruments a bank can use to raise short- term borrowings. Discuss advantages and disadvantages from the bank’s perspective. (300 words max)
Q2. You have been asked by the prospective directors of a shortly to be established business what is meant by ordinary shares, preference shares and debt capital. Further, you have been asked to provide a brief explanation of their relative advantages and disadvantages as sources of funds to expand the business. Write an essay to assist these managers. (300 words max)