Critically discuss how money markets are used in the UK for inflation targeting and quantitative easing operations. Use relevant financial data to illustrate your answer.

In this paper, you have to make a report in which you are required to critically explain that how money markets are used in the UK for inflation targeting and quantitative easing operations along with shedding light on different essential aspects such as international Derivative markets, the risk of foreign exchange losses, the UK financial system, the impact of quantitative easing (QE) on the London Stock Exchange (LSE) market and stock prices, hedging net payable, etc.

Instructions 

Assignment Questions

Please read the Notes below before answering the questions (very important).

1. Critically discuss how money markets are used in the UK for inflation targeting and quantitative easing operations. Use relevant financial data to illustrate your answer. – 550 Words
2. Discuss the key functions and the role of international Derivative markets and critically examine how external techniques of exposure management might be used to reduce the risk of foreign exchange losses in these markets. – 550 Words
3. Critically examine the UK financial system and its characteristics using recent financial data, charts, and relevant literature – 550 Words
4. Critically examine the impact of quantitative easing (QE) operations in the UK on the London Stock Exchange (LSE) market and stock prices. Can the recent volatility in global stock prices be contributed to the QE operations? – 450 Words
5. Discuss why a firm should consider hedging net payable or net receivables with currency options rather than forward contracts. - 200 Words

NOTES

• The work must meet up with the standard paid for – Gold (Equivalent to 1^st Class)
• No Introduction to each topic area is needed; go straight into the discussion of the key points of the subject area for each question.
• Remember - Critically examine/discuss means “Argument For and Against”. Your answers must reflect that.
• Each question must be answered with close reference to key published academic literature and relevant financial data, charts and graphs, and should not be part of the word count.
• Use relevant Journal articles and some recommended Books such as: -

ü  The economics of money, banking and finance. Howells, P. G. A., 1947-; Bain, K., 1942-2008 4^th edition

ü  International finance: a practical perspective. Buckley, Adrian. 2010

ü  Money, the financial system, and the economy. Hubbard, R. Glenn. 2007 6th edition.

ü  Financial crisis: causes, context and consequences. Buckley, Adrian 2011

ü  Financial markets and institutions, Mishkin, Frederic S.,. & Eakins, Stanley G. 2018 Ninth edition. Global edition