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Capi

talMar
ket
s
NAME: GESSILLEMAYS.SALAVARIA Date: 11/10/20 .
(
CCO1)AssessmentTask10.Int
erpr
ett
hecashf
lowquadr
ant
s;Under
standandanal
yzehowt
hebond
mar
ketworksi
ntherealwor
ld.

A.CASHFLOW QUADRANT
I
nst
ruct
ion:I
nter
preteachquadr
ant
sthecashf
lowusi
ngt
hewaystopr
oducei
ncome.
Q1-
E(youhaveajob)

Theemploy eehasajob.Thisiswher emostpeoplear


e
earni
ngtheirmoney.Thewor kit
selfisownedbyan
organi
zati
ont hatmaybeasi ngl
eindividual
oralar
ge
corpor
ati
on.Theempl oyeegiveshisorhert i
me,
resour
cesandexper t
isetotheempl oyerinret
urnf
orhi
s
orhersal
aryandbenef i
ts.

Q2-
S(y
ouownaj
ob)

YouownaJob.Somepeopl edon'
twantt obe
mandatedorsomeonewillbecontr
olli
ngthem when
worki
ngsotheychoosetobeself-
empl oyed.Thesel
f-
employedi
ssti
llwor
k,buttheyownt hei
rjob. Q4-
I(moneywor
ksf
ory
ou)

MoneyWor ksf
oryou.Thisiswhereyou
tr
ulyhavepassi
vei
ncome.I nvestment
s
l
ikestocks,
bonds,
andr ealestat
e
generat
eanannualcashfl
ow.

Q3-
B(y
ouownasy
stem t
hatwor
ksf
ory
ou)

Youownasy stem thatworksforyou.Thisarel i


ke
busi
nesscompani es,t
heyhavepeopl etowor kforthem
andtheyleadthem .Youaren'
tselli
ngyourt i
mef or
money ,
butrat
hersel l
ingaproductorser v
ice.I
not her
words,youdon'thavet obeworkingforthebusinesst o
generat
eincome.

Ref
lect
ion:
Thequadrantwi
l
linf
ormy
ourf
inanci
alf
reedom ashowy
ouear
nyouri
ncomemat
ter
s.Consi
dert
aki
ngsome
t
imetot
hinkaboutwher
eyouwanty
ourpr
ofessi
onal
li
fet
otakey
ou,
nomat
terwhatst
epy
ouar
ein
y
ourcar
eer.

A.NEWSREPORT
I
nst
ruct
ion:gotohtt
ps:
//www.
cnbc.
com/
bonds-
headl
i
nes/andmakeanyanewsr
epor
tonbondmar
ket
usi
ngthefor
matbel
ow.
HEADLI
NE NewZeal
andcent
ral
bankkeepsr
atesatr
ecor
dlow,
unv
eil
s News
(
Tit
le)
newl
endi
ngtool Dat
e:11/
10/
2020
BYLI
NE
(
Wri
ter
’sName/
Placel
)

THELEAD Anewmonet ar
ypol
icytoolhasbeenunveil
edbyNewZealand'
scent
ral
bankto
(Summaryofmostimpor
tant
i
nf
I
,
or
e,
mat
i
who,
on,
what,wher
ewhenand
r
educeborr
owingcostsforlender
s,whi
lekeepi
ngt
hebenchmarkrat
eatarecor
d
how) l
owandsignali
ngi
tsreadinesstodepl
oynegati
ver
ates.

P-
1 Atamonetarypol
i
cyconference,
theRBNZkeptt
heoffi
cial
cashrat
e(OCR)at
Most 0.
25percentandl
efti
tsquanti
tat
iveeasi
ngpr
ogr
am unchanged,
aspredi
ctedi
n
i
mport
ant aReut
erspoll
.
Poi
nt

P-
2
Next RBNZarguedthataddi
ti
onalsti
muluswoul dbeprov
idedthr
oughanewfundi
ng-
Most for
-l
endi
ngprogram (
FLP)thatwouldbegininDecember,
whichwoul
dreduce
I
mportant
Poi
nt bankfi
nanci
ngcostsandlowerint
erestrat
es.

P-
3 TheRBNZMonetaryPol
icyCommitt
eeagreedt
hat,i
fnecessar
y,t
heywoul
d
Next suppor
teachot
herinst
rengt
heni
ngeconomicact
ivi
ty.
Most
I
mportant
Poi
nt
P-4
Least TheNewZealanddol
lardippedabout17pi
psbutr
ecov
eredmoment
slat
ert
o
Import
ant hol
dsteadyar
ound$0.6830.
Point

Ihavelearnedt
hatMarket
sarelooki
ngforanyhi
ntsabouttheshi
ftofRBNZt o
zeroratesoranegat
iveOCR,al
thoughtheRBNZroom hasprovi
dedbettert
han
RELECTI
ON anti
cipateddat
atosti
cktoit
sguidanceofnotl
oweri
ngratesunti
lnextMarch.

I
NSTRUCTOR’
S RATI
NG: REMARKS: SCORE:
EVALUATI
ON 1.
2.
5.
6.
3. 7.
4. 8.

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