Scribd
Upload
4 views

Course Outline Financial Markets

Uploaded by

Chebangang Hyacinth
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
4 views

Course Outline Financial Markets

Uploaded by

Chebangang Hyacinth
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 4

Finance 309

Money, Banking, and Financial Markets


First semester

Instructor: Chebangang Hyacinth


phone: 675428084

Course Description:
This course covers the nature and evaluation of money and its role in determining the overall
level of economic activity. It also examines the role of banking, central banking, and monetary
policy as they apply to financial instruments and institutions in the context of global financial
markets.

This course is, in some respects, a cross between traditional “money and banking” and “money
and capital markets.” It differs, however, in its general approach to the topics covered. The
approach of the course is highly applications-oriented. The purpose of this approach is to
introduce the student to real-world issues and problems that participants in financial markets
regularly encounter. Additionally, in that money and capital markets are rapidly becoming truly
“globalized,” international perspectives are fully integrated into the material. Finally, because
financial markets continue to innovate and evolve, the nature of, and forces driving, such
innovation is spotlight.

Course Objectives:
 Provide the student with an analytical framework that will enable one to understand,
interact with, and operate in financial markets and institutions
 Introduce the student to real-world issues and problems of participants in financial
markets.
 Familiarize the student with the role of the central bank in terms of the formulation and
implementation of monetary policy.

Keep in mind that Finance 309 is an middle-level finance course, and the
performance requirements will be commensurate with the same. Chapters and other
reading materials will be assigned and you are expected to read them when or
before they are assigned. You will have an opportunity to ask questions and interact
during the class, but this will require you to be current with your reading and
studies.
Course Grades: There will be different criteria of assessment counting 40% toward the final
grades these include: class attendance, class participation, doing assignment and submitting on
time. The fi al exam will be graded at 60 marks
Course Outline

Week Chapter Homework


1 1 – Why Study Financial Markets and None
Institutions?
2 2 – Overview of the Financial Systems 
3 – overview of Financial Markets 
Types of financial markets
3 4-Financial Market instruments 
Money Market Instruments and Capital Market
instruments
4 5 – functions of Financial markets (capital and 
Money markets)
5 6 – Are Financial Markets Efficient? 
6 Midterm exam – Chapters 4, 5 & 6 
7 9 – components of financial markets 
10 – structures of Financial markets 

8 11 – The Money Markets 


Functions,
9 componennts
12 – Theand
Bond Market 
10 13 – The Stock Market 
11 15 – The Foreign Exchange Market 
12 20 – The Mutual Fund Industry 
Other Traditional Methods of raising finance

Attendance/ Participation:
Participation is required. Keep in mind that anything discussed in class may be included on an
exam or assignment. Given the difficulty of this material, you will NOT pass this class
without regular reading (prior to class), class participation.

Tips for making a good grade in this course:


1. Attend class regularly – There tends to be a high positive correlation between class
attendance and course grade.
2. Read materials when assigned – Lectures and class exercises make more sense if
you come to class prepared
3. Take good notes in class – A good set of notes is usually a good roadmap for
preparing for exams
4. Use the end of chapter questions – These questions will let you know if you are
getting from your reading what you should. That way you will get fewer surprise
exam results.
5. Take advantage of all extra credit opportunities (bonus marks during
lectures)
6. Take exams on scheduled exam date – Students rarely do as well on make-up
exams as they do on exams taken at the regularly scheduled time.
7. When you don’t understand material, ask questions – either in class, by email,
phone, or come by the office . To come by my office after failing any test to beg for
marks and/ or when there are only a few days left in the semester is a waste of your
time and mine. As soon as you realize that you are having problems in the
course, contact us immediately

Broad Course Objectives and Expectations

Relative to financial markets in general – Students should understand the function and nature
of financial markets, the characteristics of money market versus capital markets, primary versus
secondary markets, debt versus equity markets, characteristics of financial instruments traded in
the various financial markets, recognize the major participants in the various financial markets,
be able to calculate/estimate the yield on various financial instruments given the information
required to accomplish same, understand the significance of determining appropriate discount
rates.

Relative to interest rates – Students should understand the nature and function of interest rates,
the relationship between risk and interest rates, distinction between real and nominal rates,
distinction between interest rates and returns, be familiar with the concept of term structure, and
understand the market determination of interest rates and factors affecting their movement over
time

Relative to monetary policy – Students should understand the formulation, implementation and
general impact of basic monetary policy measures; understand the nature and function of central
banks in general, and be familiar with the powers, duties and functions of the BEAC in
particular, as well as its structure and governance.

Relative to financial institutions – Students should understand why financial institutions exist,
the significant forces favoring the development and use of indirect versus direct finance, why
financial crises occur and how and why they affect the broader economy, the significance of
asymmetric information in financial markets, and the challenges involved in attempting to
improve the function of financial institutions through regulation.

Relative to currency exchange rates and the international financial system – Students should
understand the nature, significance and determination of currency exchange rates and theoretical
underpinning of same, factors that affect exchange rates in the short run and long run, be familiar
with the history and impact of common currency unions, understand the appeal of and
mechanisms employed in foreign exchange interventions by governments, and the relative
advantages and disadvantages of fixed versus freely fluctuating exchange rates.

Academic Integrity/ Plagiarism:


All academic work must meet the standards contained in A Culture of Honesty: Policies and
Procedures on Academic Honest. Students are responsible for informing themselves about those
standards and for observing the BUIB Honor Code. Plagiarism occurs when a student
submits work that is not his/her own. This includes copying from printed materials, websites, or
from other people. All students are expected to turn in work that has been completed
individually, unless otherwise informed by the instructor. Any assignment containing plagiarized
material will automatically be graded as zero. The instructor will use the available technology at
hand to determine if you have or appeared to have cheated. You are required to access all data
and lectures available to you during the semester.

Required Text/ Material:


th
- Financial Markets and Institutions. 8 edition., Fredric Mishkin and Stanley Eakins.
Pearson Addison Wesley. 2012 (ISBN-13: 978-0-13-342362-4)
Recommended (not required):
th
Study Guide for Financial Markets & Institutions. 7 (William Gerken)
ISBN-13: 9780132136921

You might also like