Financial Intermediation and Risk Coursework Example | Topics and Well Written Essays - 1000 words

Financial Intermediation and Risk - Coursework Example The author of the work does some research of financial intermediation. It is a core function of commercial banking. Banks facilitate customers and corporations in such a way that they absorb the surplus liquidity in the market and pass it onto the entities which require these funds to meet their requirements. Customers can gain, firstly, by placing surplus funds which give no profit at home into the bank and earn some interest. Secondly, entities which require funds to manage their financial situation can obtain convenient loans from commercial banks. The work outlines the basic outlook and mechanism of a bank’s balance sheet. Any and all funds which have been placed with the bank come under the liability section of the balance sheet of the bank, whereas any and all fund placements by the bank come under the asset section of the balance sheet of the bank. Huge volumes of funds are flowing in and out of the bank which define various forms of bank’s participation in financial markets. The work describes how banks cope with interest rate risks. The tenure of the transaction is the first major factor which needs to be considered. For longer tenures, the risk is higher owing to the opportunity cost of entering into a less liquid transaction. The second risk which needs to be accounted for is the inverse relationship between yields and prices of securities. In an economy where the interest rate climate is on the rise, increased yields will drive the price of the security down.

Case assignment 2 Example | Topics and Well Written Essays - 750 words - 1

Case 2 - Assignment Example Zelman, M.J.M.N.D.G. 2009). When talking about the extrinsic rewards than the name of Performance management or Appraisal comes in the mind instantaneously (William N. Zelman, M.J.M.N.D.G. 2009). The subject of Performance management is quite common nowadays and we can find a huge amount of researches and literature on this mounting issue (Dag & Von, 2007). Organizations nowadays become extremely eager as far as facilitating their employees is concerned because of number of reasons. As the turnover of the employees increases as so the strategies to retain them also increase. We have selected the job role of a sales representative for this analysis. Sales representative is the person who is in direct contact with the customers of the company in terms of giving feedback to them (William N. Zelman, M.J.M.N.D.G. 2009). The performance management that should be impose is 360 degree. Performance usually has two different dimensions which predominantly are, achieving the business result and developed individual competencies. The topic of performance appraisal is now seen as a bureaucratic paper work which does not take seriously because it has minimal effect and impact on the development of employees (William N. Zelman, M.J.M.N.D.G. 2009). Performance Appraisal never asked the questions regarding the development and career advancement of an employee but competent mapping 360 degree would focus on how and why performance can be measured and developed. By utilizing the same a company could easily judge the performance of an employee and gives all sort of benefits to them (William N. Zelman, M.J.M.N.D.G. 2009) Motivational theory based on cognitive psychology. It proposes that people are motivated by their conscious expectations of what will happen if they do certain things, and are more productive when they believe their expectations