1207 #Part2 & 3

7:53 PM

Part 2- 17 Jan

Learnt about Fixed Deposit (FD) and interest rate. That time really focused because it was like listening to a story. How could something so dull suddenly sounded so interesting when he's the one talking? Then, moved on to how interest rate started. The country needs money for the economy/market. But when there is too many money, there is inflation. The credit market rise because they want to spend the money. Hence the interest rate is decided. Interest rate influence the Foreign Direct Investment (FDI). So if they want people to spend more money, the interest rate is lowered. Oh! Now I'm able to understand, not fully but I did get the basics. However, if the country needs money, the interest rate increases. Need more reading on FD and FDI.

Determinants of interest rate is still being confused in my head. Risk-free cost of capital, inflationary expectation, the level of risk in the investment, and the cost of transaction. Need in-depth reading here!

After that was Time Value of Money (TMV). Since we had already learnt before, he said he will skip. Meanwhile I have to go back to last Semester's notes. Oh, well, CNY break will be used diligently. >.<

Part 3- 24 Jan

The topic for the test has been given out. We need to research about it during the holidays and understand the contents.

Learnt about systematic risk and unsystematic risk.

There were also Default risk, Callability risk, Maturity risk and Marketability risk.

I also learnt what is None Performing Loan (NPL). Need to read more on NPL.

Are you Risk averse, Risk taker or Indifferent risk?

That is all the recap of lessons learnt. Thank you.

Bye and happy studying!

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