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SSST Subjects

EC 290 Money and Banking

 
 

Programme(s) where module is offered

  • BSc in Economics with International Business
  • BSc in Economics with Finance
 

Status (core, option, free choice)

Core

 

FHEQ Level

5

 

Unit Value

6 ECTS

 

Semester taught

Spring

 

Pre-Requisite Modules or Qualifications

EC150 Quantitative Methods, EC170 Statistics

 

Module Code

EC 290

 

Module coordinator

Amer Demirovic

 

Applicable From

2017

 

Educational Aims of the Module

  • This module introduces students to the banking system and the role money plays in the economy.
  • This module starts with the introduction to asset pricing at the micro level and expands analysis to cover interest rates and foreign exchange rates.
  • After covering the fundamental principles to valuation and exchange rates determination, the focus changes to the macro level and the role the monetary policy and central banks plays in the economy.
  • In this part, the module presents the general framework for analysis of how changes in monetary and fiscal policies impact foreign exchange rates and other economic variables
 

Module Outline/Syllabus

  • Introduction to asset pricing

  • The law of one price and spot/forward prices

  • Risk and term structure of interest rates

  • Foreign exchange (FX) markets and determinants of foreign exchange rates

  • Foundations of open economy macroeconomics

  • Models of exchange rates determination

  • Determinants of the money supply

  • Central banks and monetary policies

  • Fiscal and monetary policy linkages

  • Causes and consequences of the financial crisis (2007-8)

  • Policy responses to financial crises

 

Student Engagement Hours

Type Number per Term Duration Total Time

Lectures

15 1.5 22.5

Workshops

5 1.5 7.5

Seminars

5 1.5 7.5
Tutorials 5 1.5 7.5
Total Guided/Independent Learning Hours 45.0
Total Contact Hours 105.0
Total Engagement Hours 150.0
 

Assessment Method Summary

Type Number Required Duration / Length Weighting Timing / Submission Deadline

Mid-term Exam

1

2 hours

20%

Week 8

Group Project: Research/investigation assignments

(including presentation)

1

2000 words

 

20 minutes presentation

20%

 

 

10%

Week 15

Final Exam

1

3 hours

50%

Week 17

 

Module Outcomes

Intended Learning Outcomes:

  • To improve understanding of the most important terminology used in the field of Finance and Money and Banking and to be able to define the role of money, financial institutions and financial markets

  • Demonstrate a critical understanding of risk-return relationships

  • Describe the behaviour of interest rates

  • Demonstrate understanding of banking management, including the factors causing financial crisis and crisis dynamics

  • Recognise and articulate on the methods of financial regulation

  • Explain the impact of money and monetary policy on the economy to specialist and non-specialist audiences

  • Ability to perceive the complexity of economic phenomena, within economics and in the interaction and interrelationship with other disciples.

  • Ability to understanding the essentials of probabilistic thinking and limits of predictability of human behaviour.

  • Ability to collect a research in the field of Money and Banking (using pre-defined methods) with the aim of acquiring new information.

Teaching and Learning Strategy:

  • Lectures will provide core information relating to module material. In addition to the key text book, additional resources will be used occasionally, in order to enrich the knowledge base. (ILO:1-8)

  • Lectures will be organised in such way to encourage active participation that will allow students to learn how to present their opinion and arguments related to the issues from the field of Money and Banking. (ILO:1-8)

  • Research/investigation assignments will encourage self-study and group engagement (ILO:1-9)

  • A case study examining how a multinational corporation manages currency risk will cover topical subjects and encourage critical thinking and group discussion in a class environment (ILO:1-8)

  • Guided, independent study (ILO:1-9)

Assessment Strategy:

  • Mid-semester and final exam (ILO: 1-9)

  • Group Project (ILO: 9)

  • In-class participation (ILO: 1-8)

Practical Skills:

  • Ability to conduct written reports on significant topics from the field of Money and Banking

  • Ability to calculate basic interest rates cs(YtM, RofR, Real and Nominal interest rates)

  • Interpret and extract meaning from financial institutions balance sheets

  • Read and interpret interest rate, money supply and other variables’ graphs

  • Ability to assess the effects of monetary policy measures on economic activity and interpret the results effectively.

Teaching and Learning Strategy:

  • Lectures (PS: 2-5)

  • In-class exercises (PS: 1-5)

Assessment Strategy:

  • Mid-semester test and final exam (PS:2-5)

  • Group Project (PS:1)

Transferable Skills:

  • Numeracy Skills

  • Analytical thinking and problem solving

  • A problem-centered and problem-solving approach

  • Ability to effectively present own and others’ point of view

  • Communication Skills: Written and Oral

  • Research Skills

  • Data analyses skills

  • Classify data

  • Compare, inspect or record facts

  • Meet deadlines

  • Good time management

  • Organize/manage projects

  • Team working skills

Teaching and Learning Strategy:

  • Lectures (TS: 1-3)

  • In-class exercises (TS:1-9)

  • Group projects and independent study (TS: 1-13)

Assessment Strategy:

  • Group project (TS:1-13)

  • Mid-semester test and final exam (TS: 1-5, 7-9)

 

Key Texts and/or other learning materials

Set text

  • Copeland, L. (2014), Exchange Rates and International Finance, 6th Edition, Pearson

Supplementary Materials

  • Bindsell, U., (2014), Monetary Policy Operations and the Financial System, Oxford University Press

  • Bordo, M., et al., (2016), Central Banks at a Crossroads: What can we learn from History? Cambridge University Press

  • Fender, J., (2012), Monetary Policy, John Wiley & Sons

  • Hull, J. C. (2017) Options, Futures, and Other Derivatives, 10th Edition, Pearson

  • Langdana, F., (2016), Macroeconomic Policy: Demystifying Monetary and Fiscal Policy, 3 Edition, Springer

  • Matousek, R., (ed)., (2016), Money, Banking and Financial Markets in Central and Eastern Europe: 20 Years of Transition, Palgrave MacMillan

  • Matthews, K., Giuliodori, M., Mishkin, F., (2016), The Economics of Money, Banking and Financial Markets, Pearson

  • Thomakos, D., et al., (eds), (2015), A Financial Crisis Manual: Reflections and the Road Ahead, AIAA, Palgrave MacMillan

  • Tirole, J., (2015), Financial Crises, Liquidity and the International Monetary System, Princeton University Press

Please note

This specification provides a concise summary of the main features of the module and the learning outcomes that a typical student might reasonably be expected to achieve and demonstrate if he/she takes full advantage of the learning opportunities that are provided.

More detailed information on the learning outcomes, content and teaching, learning and assessment methods of each module and programme can be found in the departmental or programme handbook.

The accuracy of the information contained in this document is reviewed annually by the University of Buckingham and may be checked by the Quality Assurance Agency.

Date of Production : April 2017

Date approved by School Learning and Teaching Committee

Date approved by School Board of Study

Date approved by University Learning and Teaching Committee

Date of Annual Review

       
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