WUCB105 - Introductory Principles of Finance

Research Report (Autumn Session 2017)

ASSIGNMENT 1. Review the deposit accounts available from the Australian commercial bank your
QUESTION: group has been allocated. Identify and explain which account would be most
appropriate in each of the following scenarios:
a. An account which would be appropriate for someone who intends to have
their salary deposited, and be able to withdraw on a regular basis to have
access to cash, and to pay their bills and other regular expenses.
b. An account which would be appropriate for someone who intends to save
$2,000 a month without withdrawing any funds for the next 12 months.
c. An account which would be appropriate for someone who has $20,000
(without the need to access the funds) to invest for a period of 6 months.

2. Review the loan accounts available from the Australian commercial bank your
group has been allocated. Identify three different types of loans which may be
appropriate for someone who wishes to borrow $8,000 for a holiday. You should
provide include an explanation any preconditions (e.g. assets) required with any
of the loan options.

Assume they wish to repay the loan with monthly repayments over the next 2
years. Calculate the monthly repayments and the total interest that would be paid
under each loan option. Show the formula used and workings.

3. Deposit and loan accounts are products of commercial banks as they operate in
their role as financial intermediaries. What is an alternative to financial
intermediaries for borrowers and lenders? Discuss the advantages and
disadvantages.

4. Also each group member is to individually submit:

Diary of meetings with notes of discussions, the group work plan on agreed task
allocation, etc.
A reflection statement about how the group performed and what could have
been improved.
An assessment of the contribution of each of the team members (including
themselves) out of 10 with an explanation for your mark.

TASK: Write a well structured research report of approximately 1,000 words that responds
to the assignment question.

RESEARCH Information from your bank (brochures, reports, website) supporting parts 1 and 2.
EVIDENCE:
A minimum of three (3) academic sources (journal articles and/or textbooks, magazine and
newspaper articles) relevant to part 3.

DUE: Week 9 (2 May 2017) submit in lecture.

WEIGHTING: This assignment represents 15% of the total subject marks.

SUBMISSION: Check you have met ALL assignment submission criteria.
HARD COPY MUST BE SUBMITTED (Must include cover sheet and marking
criteria sheets.)
Your assignment must be received before the due date.
Assignments received after the due date will receive a late penalty
NO EXCEPTIONS (Refer to Student Handbook)

FORMAT: Strict adherence to the following formatting instructions is required.

Marks will be deducted for non-compliance.
1. All margins to be set at 2.5cm (Top, bottom, left and right).
2. Font: Arial12pt.
3. Double line spacing.
4. Every page is to include:
Header showing student name and number of each group member.
Footer to include page number using the format Page X of Y.
5. Cover sheet to be included.
6. Print single sided only and staple in top left corner.

REFERENCING: Harvard Referencing System (as set out in the UOW Online Referencing Guide,
available at: http://www.library.uow.edu.au/referencing/ )

This subject is typically scheduled for completion in your final session at the College. It is
expected that this essay will demonstrate techniques learned during your Diploma program.
Therefore this assignment should be of the highest quality with attention shown to detail in
every respect. This essay will exemplify the development of graduate qualities.

A key expectation is that you make a logical connection between theory, research and
practice as it applies to the subject of finance.