Department of Economics, Unit Catalogue 2011/12
|Level:||Intermediate (FHEQ level 5)|
|Assessment:||CW 40%, EX 60%|
|Supplementary Assessment:||Like-for-like reassessment (where allowed by programme regulations)|
|Requisites:||Before taking this unit you must take ES10002 or take ES10010|
* 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.
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.
Use and analysis of economic data; problem-solving; understanding of financial and monetary theory expressed in written form through an examination.
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.
* 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.
ES20070 is Optional on the following programmes:Department of Economics