Course Overview
|
Course Synopsis
|
This course helps students to know how to apply a simplified approach to the demand for assets. The student will be able to learn the concept of equilibrium. This course focuses on how basic supply and demand works, so that student can explain the behavior in financial markets. This course is an approach to financial structures based on transaction costs and asymmetric information. The students will also be able to learn about the banking system of how Banks operate and also to know about the basic objectives and functions of Central Bank.
|
Course Learning Outcomes
|
At the end of the course you should be able to:
- Explain how the monetary and financial systems facilitate the production of wealth, analyze and evaluate the factors influencing the prices of financial market instruments
- Differentiate between the various types of financial institutions
- Explain the risks that financial institutions face
- Describe how monetary policy affects the economy
- Discuss how central bank operates
|
Course Calendar
|
|
1
|
Text & Reference Material and Five Parts of the Financial System
|
|
2
|
Five core principles of Money & Banking
|
|
3
|
Money and the Payment System
|
|
4
|
Other forms of Payments
|
|
5
|
Financial Intermediaries
|
|
6
|
Financial Instruments & Financial Markets
|
Assignment 1
|
9
|
Application of the Present Value Concept
|
Quiz 1
|
15
|
Shifts in Equilibrium in the Bond Market & Risk
|
|
16
|
Bonds & Sources of Bond Risk
|
Quiz 2
|
17
|
Tax Effect & Term Structure of Interest Rate
|
|
18
|
The Liquidity Premium Theory
|
|
20
|
Risk and Value of Stocks
|
GDB
|
21
|
Role of Financial Intermediaries
|
|
22
|
Role of Financial Intermediaries(Continued)
|
|
24
|
Balance Sheet of Commercial Banks
|
|
27
|
Non Depository Institutions
|
|
28
|
Non- Depository Institutions (Continued)
|
|
29
|
The Government Safety Net
|
|
32
|
Meeting the challenge: creating a successful central bank
|
|
34
|
Deposit Creation in a single Bank
|
Quiz 3
|
36
|
Target federal funds rate and open market operations
|
|
37
|
Why do we care about monetary aggregates?
|
|
38
|
The facts about velocity
|
|
39
|
The portfolio demand for money
|
|
40
|
Money growth, Inflation & Aggregate demand
|
|
41
|
Deriving the monetary policy reaction curve
|
|
42
|
The Aggregate demand curve
|
|
43
|
The aggregate supply curve
|
|
44
|
Equilibrium and the Determination of Output & Inflation
|
|
45
|
Shifts in potential output and real business cycle theory
|
|
|
|