An Assignment On

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 As a investor
shall we invest
in the money
market or in
the capital
market?

Submission Date: 24th August, 2021

BUS 313 : Money and Banking

Prepared for

Mrs. Meherun Nesa

Assistant Professor

Green Business School

Green University of Bangladesh

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 Prepared by

SL Name ID

1 Sumaiya Hossain Binti 193006002

2 Md. Zamiul Islam 192006014

3 Md. Masud Rana 191006078

4 Porosh Uddin Ahmed Taposh 183006024

Green Business School

Green University of Bangladesh

Letter of Transmittal

24th August, 2021

Mrs. Meherun Nesa

Assistant professor
Green Business School
Green University of Bangladesh

Subject: Submission of group assignment titled “As a investor shall we invest in money
market or capital market”.

Dear Sir,

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With due respect, we are the student of bachelor of business administration program have
assigned on “As a investor shall we invest in money market or capital market” under the
course “Money and Banking”.

Though we are in learning line, this group assignment has enabled us to gain insight into the
core fact about money and banking. By this group assignment, we have learnt about various
terms and conditions about different financial market. Therefore, it becomes an interesting
experience for us. Thank you ma'am, for your supportive consideration to develop this idea.
Without your inspiration, this group assignment would have been an incomplete one.

Therefore, We would be thankful once again if you please give your judicious advice on our
effort.

Yours’ sincerely

SL Name ID
1 Sumaiya Hossain Binti 193006002
2 Md. Zamiul Islam 192006014
3 Md. Masud Rana 191006078
4 Porosh Uddin Ahmed Taposh 183006024
Green Business School
Green University of Bangladesh

Acknowledgement

In our preparation for the group assignment, we had to take help and guidance from some
respected people. We are grateful because we managed to complete the “Money and
Banking” course’s group assignment within the time frame given by our respectable course
instructor Mrs. Meherun Nesa. We also sincerely thank our course instructor, Mrs. Meherun
Nesa for the guidance and encouragement in finishing this group assignment and also for
teaching us the course. Last but not least, we would like to extend our gratitude to all those
who have directly indirectly guided us in writing this group assignment.

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Executive Summery

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 Table of Content

SL Topic Page

1 Introduction

2 Methodology

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3 Main body of the report

4 Key Findings

5 Conclusion

6 Recommendation

7 Reference and Bibliography

8 Appendix

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Introduction

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Methodology

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 Main body of the report

There are two ways to manage wealth like maintaining what you have or growing it. Which
path to choose can be confusing. Recently we can see investors are jittery due to reports of
rising inflation. Where to invest your money boils down to two components of the financial
market which are money market and capital market. The money market and the capital
market are two large components of the global financial market where the funds invested are
used for short-term or long-term borrowing and lending.

The money market is a good place for individuals, banks, other companies, and governments
to park cash for a short period of time, usually one year or less. It exists so that businesses
and governments that need cash to operate can get it quickly at a reasonable cost, and so that
businesses that have more cash than they need can put it to use. The returns are modest but
the risks are low. The instruments used in the money markets include deposits, collateral
loans, acceptances, and bills of exchange. Institutions operating in the money markets include
the Federal Reserve, commercial banks, and acceptance houses. When a company or
government issues short-term debt, it's usually to cover routine operating expenses or supply
working capital, not for capital improvements or large-scale projects. 

The capital market is where stocks and bonds are traded. Its movements from hour to hour
are constantly monitored and analyzed for clues as to the health of the economy at large, the
status of every industry in it, and the consensus for the short-term future. The overriding goal
of the companies institutions that enter into the capital markets is to raise money for their
long-term purposes, which usually come down to expanding their businesses and increasing
their revenues. They do this by issuing stock shares and by selling corporate bonds.

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 Key Findings

Here are the key findings which can advice to help us navigate where to invest.

 The money market is the trade in short-term debt. It is a constant flow of cash
between governments, corporations, banks, and financial institutions, borrowing and
lending for a term as short as overnight and no longer than a year.

 The capital market encompasses the trade in both stocks and bonds. These are long-
term assets bought by financial institutions, professional brokers, and individual
investors.

 The money market is a short-term lending system. Borrowers tap it for the cash they
need to operate from day to day. Lenders use it to put spare cash to work.

 The capital market is geared toward long-term investing. Companies issue stocks and
bonds to raise money to grow their businesses. Investors buy them to share in that
growth.

 The money market is less risky than the capital market while the capital market is
potentially more rewarding.

The best place to invest “depends on your goal and your time horizon,” says Johnson.  For
investors with a long time horizon, such as a twenty-something saving for retirement,
the capital market is the better pick. A large-cap index fund is a good start for these investors,
recommends Johnson.

“If you need that money within a year or two, it’s best to just put it in the money
market because of that volatility,” Johnson recommends. The money market is a lower risk.
“People who invest in the money market can sleep well. There’s very little volatility but very
little growth,” says Johnson.

Those that need the money soon will be motivated to preserve wealth rather than
accumulating it. You wouldn’t put money you were saving for a down payment in the stock
market (capital market) because there’s a chance it could fall into correction, and you’d no
longer be able to afford your dream house. With a money market investment, your down

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payment wouldn’t grow very much – but it wouldn’t evaporate due to market volatility, so
you can rely on it to be there when you get ready to make that offer. 

Conversely, “those capital market investors may suffer some sleepless nights when the
market falls into a correction,” says Johnson. Despite the risk, though, those who invest in
the capital market can be rewarded better than the money market if they wait it out. 

“If you’re looking for long-term, like retirement, you want that to be in a capital investment,”
Adams explains. However, the time will come when you need to transition that money
from capital market investments to money market investments. “As you near any major
purchase decision where you need the money you have, you want to plan a transition from
the capital market to the money market because that guarantees your money will be there,”
Adams says. 

Since 1926, the S&P 500 – a capital market –  has increased by 10.3% annually, Johnson
says. Hiding within the average is the statistical fact that there are good years and bad years.
Investors with long time horizons can generally take advantage of those banner years where
stocks grow greater than 10% to offset the years its drops below that. 

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Conclusion

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Recommendation

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Reference and Bibliography

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Appendix

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 Literature Review

My assigned topic is the garment executive work responsibility based on career management
model. This topic is assigned by our course instructor. After researching this role I have come
to know that there are some significant work responsibility as a garment executive. I have got
this information through the career planning and development book and other online
websites. As a garment executive I have to participates in continuous improvement meeting
and shares ideas related to implementing balanced layout, reducing changeover time, quality
improvement & wastage control. I have to prepares cutting plan and closely monitors
materials flow to execute the plan and there are many more responsibilities I have to do as a
garment executive. So, after researching this role I have come to know that there are some
significant work responsibilities as a garment executive.

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 Discussion

Figure : Model of Career Management

1. Career Exploration: Career exploration is the collection and analysis of information

regarding career-related issues. One should aware of his talent, interest, values and the
importance of work in is total life, about alternative jobs inside or outside the
organization. Career exploration promotes awareness.

2. Awareness: Exploration increases awareness. Awareness is a relatively complete and

accurate perception of a person’s own qualities and characteristics of his relevant
environment. Awareness is a central concept in career development. A thorough

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 awareness of self and environment allows a person to set right career goals and
strategies.

3. Goal Setting: People set career goals to maintain motivation, have something to look
forward to and achieve success. Effective career goals follow the S.M.A.R.T. model.
That is, they are specific, measurable, achievable, and realistic and have a timeline.
Greater awareness of self and environment can help the individual choose a career
goal to pursue. A career goal is a desired career-related outcome that a person intends
to attain. The goal may be to attain the position of assistant plant manager in a
specified period of time, to move into a project engineering position. Career goal must
be specific and concrete in order to develop an effective strategy to achieve the goal.
The career goal of a person is to receive quick promotion.

4. Strategy Development: A strategy is a plan chosen to bring about a desired future,

such as the achievement of a goal or solution to a problem. A career strategy is a
sequence of activities designed to help an individual attain a career goal. A career
strategy is a structured approach to developing capabilities, tools, and resources in an
organization, which will enable people to navigate their career ‘journey’ successfully.

5. Strategy Implementation: Strategy implementation put simply is the process that

puts plans and strategies into action to reach goals. The implementation of a
reasonable strategy can produce progress toward the stated career goal. It is important
that you give priority and time to implementing your career action plan, to ensure you
achieve your desired outcomes and commit to a lifelong learning strategy to stay
employable

6. Feedback: Feedback is a response towards the sender about a message. The

implementation of a career strategy can provide useful feedback to the person. This
feedback can enable the person to appraise his career. Great supervisors know that
motivating employees is about more than charisma and vision.

7. Career Appraisal: Whether or not a person is making progress toward a goal, the
implementation of a career strategy can provide useful feedback to the person.

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The first step in the career management model indicates that as a garment executive I should
engage in career exploration (Box A in Exhibit 4.1). That is, I should begin gathering
information. I might collect information about myself (what I enjoys to do, where my talents
lie, the importance of work in my total life), about alternative jobs inside or outside the
organization.

Career exploration, if conducted properly, should enable me to become more fully aware of
myself and my environment (Box B). I ought to gain insight, for example, into my values,
interests, and abilities in both my work and non-work lives. I should become more aware of
job options and their requirements and of opportunities and obstacles that exist both with my
current employer and with other companies.

A greater awareness of myself and my environment can help the garment executive to choose
a career goal or goals to pursue (Box C). First, greater self-awareness should prompt the
garment executive to set reasonable conceptual goals. A conceptual goal represents a general
summary of the nature of the work experiences or outcomes the individual intends to attain,
without specifying a particular job or position. In this sense, the conceptual goal is a
manifestation of the individual’s significant values, interests, and preferences. For example,
as a garment executive I might have a conceptual goal to attain substantial managerial
responsibility as a means to influence corporate direction.

In addition, greater awareness of the work environment should assist in the setting of
operational goals. An operational goal translates the conceptual goal into a specific or
targeted job and is based on the individual’s understanding of the internal and external work
environments. To extend the above example, as a garment executive I might have a longer-
term operational goal to be the assistant vice-president (AVP) of technical support, which
would satisfy my conceptual goal to exert managerial responsibility that influences corporate
direction. Of course, I could have interim operational goals that could take me to the AVP
level. I might first set a more reasonable operational goal of being a team leader for a high-
profile engineering project. Or I might have a short-term goal to remain in my current
position for the foreseeable future as a means to gain more experience, establish a record of
accomplishment, and build a set of transportable skills.

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The establishment of realistic conceptual and operational goals can facilitate the development
(Box D) and implementation (Box E) of career strategies; that is, courses of actions designed
to attain the desired career goals. For example, if as a garment executive my primary
operational goal is to become the AVP of technical support, I might enroll in one or more
management development seminars sponsored by the company, encourage my boss to assign
me more managerial tasks in my present position, learn more about the operation of the entire
plant, or seek information through the Internet describing the responsibilities of an AVP of
technical support.

The implementation of reasonable career strategies can produce progress toward the stated
conceptual and operational career goals (Box F). If as a garment executive I chooses wise
plans of action, I am more likely to attain my goals than if I did not pursue any career
strategies or if I developed inappropriate strategies.

The implementation of career strategies can provide useful feedback to the person. This
feedback, in conjunction with feedback from other work and non-work sources (Box G), can
enable me to appraise my career (Box H). The additional information derived from career
appraisal becomes another vehicle for career exploration (see the arrow from Box H to Box
A) that continues the career management cycle. For example, as a garment executive I might
discover that I have performed poorly on the newly acquired managerial portions of my job.
This appraisal might lead the garment executive to consider changing my goal; I may no
longer wish to enter management. Or I may retain the goal but revise the strategies (see the
arrow from B to D). For example, I might choose to pursue a graduate degree in management
to hone my skills.

Based on career management model as a garment executive of ‘X’ company at first I should
engage in career exploration. That is, I should start gathering information about myself like if
I am enjoy what I am doing, is it suitable for me and the importance of my job in my life.
Because of career exploration means that understanding about me. I have to figure out my
personal interest, values, skill and talent to do the job of sales executive. By doing that I’ll
know about my lacking and flaws. To become aware of the job and job’s requirement career
exploration is very important. After that, a greater awareness of mine can help to choose my
career goal to pursue. For a good career I have to set a goal. The goal may be to attain the
position of sales executive in a specified period of time, to move in to a sales manager
position. That’s why goal setting is necessary for me. After setting my goal I need to develop

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my strategy for this career like I need to strategies, how can I become more productive to my
career and what should I do for develop myself. These strategy need to be implemented by
me. So that, i can produce more progress toward my goal. Then I can figure out the feedback.
This feedback in conjunction with feedback from other work and non work sources can
enable me to appraise my career and there are many more responsibility I have to do which
are as like I am responsible for the entire activities of the store & bond. I have to maintain
general item, stationeries, engineering item including all sorts of machine spare parts of
garments & textile. I have to check materials inventory report & inform to concern head. I
will follow-up monthly requisition for required items & service. I will also follow-up
accurate stock according FIFO & LIFO. I have to follow-up all receivable & issue document
properly. Stock materials according to a prescribed inventory system. Bin Card use for each
and every item. I am executing all the Day-to-Day Stores Function as per the SOP (Standard
Operating Procedure). I will ensure goods inbound & out bound, warehouse management,
safety and security within the store. Ensure proper deliveries. I have to follow-up general
store stock such as general, electric, mechanical and civil items. I have to check all materials
received with quality and all material stock follow up. I have to ensure all the stock report
update & monitoring. I have to provide support for all wastage selling goods. I have to know
daily stock report to the authority and establish production plans and schedule. I have to
maintain and monitor production schedule. I will ensure materials available for production. I
have to raise request of Material to Materials Dept according to production plan. A garment
executive also have to monitor, follow up and compare production progress as per planning
schedule and in case of unexpected situation take corrective action concerning key account
head and head of planning. I ensures that the safety, quality, maintain compliance issues are
taken as part of the job. I have to follow up received & delivery status and prepare report as
per plan to concern person. A garment executive follow up production floor and maintain
required MIS. I also work with capacity planning & facility layout.

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 Conclusion

At the conclusion of the assignment I would like to say that an individual’s career is the sole
source of one’s natural expression of self. One school of thought describes work as the
purpose of life and the source of one’s expression and the purpose of being or existence. Yet
others believe that there is a wide difference between an individual’s career and his life. In
any case, career is an integral component of one’s life and therefore the need for its
management. Career management is more or less like the organizational management; after
all an organization is nothing but an assortment of individuals. The process of career
management begins with the formulation of goals and objectives those that are short term or
meant to be achieved in the short run.

In sum, the career management model is a problem-solving, decision-making process.

Information is gathered so individuals can become more aware of themselves and the world
around them. Goals are established, plans or strategies are developed and implemented, and
feedback is obtained to provide more information for ongoing career management.

As a garment executive who follow this approach to career management do not live in a
vacuum. As indicated by the border around Exhibit 4.1, the usefulness of exploration, goal-
setting, strategies, and feedback often depends on the support received from various people
and organizations.

The successful application of this career management model depends both on the individual
and the organization. It involves an exchange of information among employees, current and
potential employers, co-workers, friends, and families. Individuals must be willing to take on
the task of being proactive and responsible for their careers. It takes effort to gather the
information needed to make appropriate career decisions. Organizations must also be willing
and able to share information with employees, to make the necessary resources available, and
to support employees in their attempts to manage their careers. Subsequent chapters will
consider what individuals and organizations can do to stimulate career growth and effective
career management.

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