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Academic Year: | 2012/3 |
Owning Department/School: | Department of Economics |
Credits: | 12 |
Level: | Intermediate (FHEQ level 5) |
Period: |
Academic Year |
Assessment: | CW 40%, EX 60% |
Supplementary Assessment: | ES20070 Resit Examination (where allowed by programme regulations) |
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. |
Programme availability: |
ES20070 is Optional on the following programmes:Department of Economics
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