COURSE OUTLINE

Semester Fall
Semester Year 2022

Class: BBA-5 (C)

Course: BA3501 Financial Markets and Institutions
Instructor: Ms. Sindhu Dawani

Class details
Class Timing and Room 03:00 - 06:00 pm 
Session Day(s) Friday
Credit Hours: 3/class hours(per week)
Course Prerequisites:  BA1202 Macroeconomics
Consultation Time 15 mins prior/ post class session

Course Description
This theoretical course focuses on financial markets including bond, equity and the
effect of the economy upon the markets when funds are injected into the economic
system through financial intermediaries. Topics include; interest rates and based on
that, the flow of funds, capital markets, debt market, money markets and their
relationship with changing financial services and regulatory agencies. Other topics
include roles of banks, finance companies, insurance companies and fund management
companies. The study of FMI is one of the most important areas for finance and
business students. The course has been designed to enable the students to understand
the existing setup of financial markets, instruments and institutions.
Course Objective
Objective of this course is to provide broader prospective to Financial Markets and
Institutions. It aims to help student understand descriptive concepts important to
financial management along with insight into various financial markets and the
institutions that participate current environment.
Learning Outcomes
After completion of course sessions, student will be able to have clear understanding of
various financial markets and should be able to differentiate each other with the
functions they perform and the structure in which they operate. Also, topics covered in
each session will enable students understand Risk and financial crises, interest rate,
bond, equity, derivative, FX market and financial institution operating both domestic
and international markets.
Teaching and Learning Methodology
Lectures and Presentations, case study, class discussions, course material and quizzes.
Student should make sure to pay full attention during lectures as course assessment
will be based on what is discussed during class lectures.

Materials and Supplies

A number of academic articles will also be discussed in the class to understand the
theoretical concepts and Pakistan specific financial environment. Moreover, one group
project will be given during the course of semester.
Newspaper discussion: Daily reading of the business section of the newspaper is to be
done.

Expected Class Conduct

Productive class participation will be highly encouraged. However, students are
expected to behave professionally during the course sessions.

COURSE PLAN
Week Chapters Session Topic Assesments %
PART I: INTRODUCTION

1 1 and 2 Why Study Financial Markets and Institutions? N/A

Overview of the Financial System

PART II: FUNDAMENTALS OF FINANCIAL MARKETS

What Do Interest Rates Mean and What Is Their Role in

2 3 and 4 Valuation? N/A

Why Do Interest Rates Change?

Part 2 (contd)

3 5 and 6 How Do Risk and Term Structure Affect Interest Rates? Quiz - 1
Are Financial Markets Efficient?

PART III: FUNDAMENTALS OF FINANCIAL

INSTITUTIONS

4 7 and 8 Why Do Financial Institutions Exist? N/A

Why Do Financial Crises Occur and Why Are They So
Damaging to the Economy?

Part IV:
5 9 N/A
Central Banks and the Federal Reserve System

6 10 Conduct of Monetary Policy Quiz - 2

PART V: FINANCIAL MARKETS
7 11 N/A
The Money Markets

Mid
8 Mid Term Mid Term
Term

PART V (contd)
9 12 N/A
The Bond Market

The Stock Market

10 13 and 14 N/A
The Mortgage Markets

11 15 and 16 The Foreign Exchange Market Quiz - 3

 The International Financial System

PART VI: THE FINANCIAL INSTITUTIONS INDUSTRY

12 17 and 18 Banking and the Management of Financial Institutions N/A
Financial Regulation

Banking Industry: Structure and Competition The

13 19 and 20 Assignment
Mutual Fund Industry
PART VII: THE MANAGEMENT OF FINANCIAL
INSTITUTIONS
14 23 and 24 Report
Risk Management in Financial Institutions
Hedging with Financial Derivatives
15 Final Report Submission & Presentation Presentation

Text Book
Financial Markets & Institutions, Frederic S. Mishkin & Stanley G. Eakins, (Ninth
Edition / Global Edition).
An Introduction to Financial Markets and Institutions, Maureen Burton, Reynold F.
Nesiba, Bruce Brown, 2nd Edition, Routledge,.
The Economics of money, banking and Financial Markets, Frederick S. Mishkin,
Apostolos Serletis, 4th Edition, Pearson

Marks Distribution
Total
Total Total Marks For D Grade
Marks Head Marks
Frequency Exempted /Frequency Holder(s)
/Head
Quiz 3 1 5 10 Included

Assignment 1 0 5 5 Included

Final Paper 1 0 40 40 Included

Mid Term Paper 1 0 20 20 Included

Class
1 0 5 5 Included
Participation
Final Presentation 1 0 10 10 Included

Report 1 0 10 10 Included
100 (For
  Total Marks 100
DGs)
 Attendance Policy
Prompt arrival and regular attendance are extremely important. For Academic policy
refer to student handbook for policies on late entry, maximum absences allowed, leave
application etc.

Students with Physical or Educational Challenges

Students with educational and/or physical challenges are entitled to extra attention
and time from the instructor. Therefore, students are advised to notify the course
instructor at the beginning of the course. Special arrangement may also be made on
prior request based on specific challenges.

Academic Integrity
This course seeks to empower students for independent learning, resourcefulness, clear
thinking, and perception. All submitted work and activities should be genuine
reflections of individual achievement from which the student should derive personal
satisfaction and a sense of accomplishment. Plagiarism and cheating subvert these
goals and will be treated according to the policy stated in the Student Handbook. The
instructor reserves the right to utilize electronic means to help prevent plagiarism.
Comments and/or Suggestions
Students and Instructors may contact the Institutional Research Department if there is a
need to make suggestions or comments that can help further improve the course. A link
is also provided on your ZABDESK account for frequent and trouble-free feedback. The
Institutional Research Department would like to hear your feedback about the
following:

Students Instructors
 Availability of teaching material
 Course Content/ thoroughness
 Facilities/Internet/Administrative
 Lecture Delivery/Supplementary
Support
Material
 Labs:
 Facilities/Labs/Software/Hardware
Software/Hardware/Technical
Support
support
 Course alignment with learning
 Availability and quality of
outcomes
Teaching Instruments
 Any other comments/feedback
 Any other comments/feedback