Department of Economics, Unit Catalogue 2010/11 |
ES20070: Money and finance |
 Credits:
| 12 |
| Level:
| Intermediate |
| Period: | This unit is available in... |
| Academic Year |
| Assessment:
| CW20EX80 |
| Supplementary Assessment: | Supplementary assessment information not currently available (this will be added shortly) |
| Requisites:
| Before taking this unit you must take ES10002 or take ES10010 |
| Description:
| Aims: * To provide an introduction to financial markets and their operation; * To understand the pricing of financial instruments; * To enable students to understand the links between financial markets and the real economy; * To demonstrate linkages between economic policy and financial markets. Learning Outcomes: At the end of the unit students should be able to: * analyse the roles of financial markets and financial intermediaries; * explain how the pricing of financial instruments takes place; * understand the link between financial markets and economic policy. Skills: Use and analysis of economic data; problem-solving; understanding of financial and monetary theory expressed in written form through an examination. Content: Financial decision making with risky assets; portfolio diversification; introduction to the CAPM model; interest rate determination; overview of the operation of money markets and how money market instruments are priced; introduction to bond markets; the term structure of interest rates; introduction to derivative markets - futures, options, swaps. Key texts: * Howells, P and Bain, K. The Economics of Money, Banking and Finance (4e, Pearson Education, 2008); * Mishkin, F. S. The Economics of Money, Banking and Financial Markets (Pearson, Addison-Wesley, 2007), 8th edition. |