revision fin435

Chapter 3
treasury bill
⁃ characteristics
⁃ interest or discount loan
⁃ tempoh maturity date
⁃ purpose
money market short term instrument
⁃ short term, sold at any time, trading at secondary market
⁃ klibor
⁃ money market system: speed to rentas: lagi fast transaction
⁃ kaedah marc (rate depends on performance)
⁃ objectives - to maximize profit minimize costs of funds, to manage
liquidity position
⁃ who are participate in MM - BNM, Cagamas, banking, non banking, money
broker - intermediaries
⁃ Lending and borrowing - more related to those guna mm secara instrument
deposit: simpan kat bank, bank penghutang dia
⁃ sale and purchase - repo, bnm issue mm buat agreement, complete 1st
transaction iaitu jual, then 2nd transaction beli balik
NID
⁃ debt (bank ada duit deposit instrument bawah bnm dan terima interest)
⁃ minimum 50 ribu
⁃ 1 mth to 10 years
⁃ min 50k to 10m
⁃ yield - interest bearing
⁃ purpose: maximize the profit: manage liquidity (jual instrument kat 3rd
party or org yang jual tu balik)
Bankers acceptance
⁃ discounted bearing
⁃ tempoh 21 days - 200 days
⁃ purpose: untuk credit, bagi responsibility jadi, appoint bank jadi
account payable
Mgs
⁃ interest bearing
⁃ obtain fund from public
⁃ 1 y - 3 years (maturity date) tenure
⁃ long term since to finance national development project, government
issue benda to dapat profit
⁃ digunakan oleh government jugak
Treasury bill
⁃ digunakan oleh government
⁃ 12 bulan sahaja (short term)
⁃ fo finance financial expenditure
repo
⁃ instrument jual, beli balik
BNM changed to monetary notes
⁃ mm, repo, ba (product offer by bnm)
⁃ purpose offer mm: to manage economy condition, banyak duit di market
not good for economy
⁃ those bank ada duit banyak kena beli kat bnm money market(dapat return
from bnm): bank tu recess fund decrease: decresekan credit supply:borrower kurang:
inflasi kurang
Forex exchange
⁃ pertukaran mata wang antara dua negara
⁃ import export
⁃ currency involve dgn speculators (influence the decision)
⁃ import export: dealing dgn overseas: shipping guarantee,
⁃ development: issue 1996
 ⁃ over the counter, in the room of the bank (bila buat transaction)
⁃ risks (transaction & settlement risk)
⁃ cutloss strategy
quotations
⁃ beli barang, senarai harga is quotation
⁃ printkan quotations, before u made the transaction
⁃ spot: deal sekarang: libat dua hari: currency, transaction not
immediately perform, kena tunggu: timing (My pagi, UK malam)
⁃ forward: deal harini untuk beli akan datang, deal harini untuk beli
bulan depan, quotations based on spot and forward rate, bila masa nak jual dan nak
beli:
Chapter 2
⁃ nominal rate real rate
⁃ opr, blr,