Banking and Financial Institutions
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Upon completion of this subject, the students should be able to:
- Explain and reflect on the role of financial institutions in the economy
- Assess how financial institutions manage risk using some of the trading strategies and instruments available in financial markets
- Evaluate the role of monetary policy in an open economy
- 1. Week 1
- 1.1) Overview of the financial system;
- 1.2) role of markets and intermediaries;
- 1.3) flow of funds
- 2. Week 2
- 2.1) Why Do interest rate change?
- 2.2) How do risk and term structure affect interest rate?
- 3. Week 3
- 3.1) Are financial markets efficient?
- 3.2) Why Do financial institutions exist?
- 4. Week 4
- 4.1) Central Banks: A global perspective
- 5. Week 5
- 5.1) The RBA and Australian monetary policy
- 6. Week 6
- 6.1) The Taylor rule
- 7. Week 7
- 7.1) The money market and the bond market
- 8. Week 8
- 8.1) The stock market and the mortgage market
- 9. Week 9
- 9.1) Foreign exchange markets
- 10. Week 10
- 10.1) The international financial system
- 11. Week 11
- 11.1) Fixed exchange rate and monetary policy: The Chinese case
- 12. Week 12
- 12.1) Global financial crisis: Causes, consequences and the aftermath
- 13. Week 13
- 13.1) Final review
No eligibility requirements
No special requirements
This is a third-year unit and a compulsory unit in the Economics Foundations and Finance majors in the Bachelor of Economics. It is an elective unit in Economic Analysis major in the Bachelor of Economics and the Finance major in the Bachelor of Business. The unit examines the Australian and international financial systems and analyses the different roles of intermediaries and markets and the role they play in the flow of funds in the economy, the use of financial instruments such as debt, options and other derivatives to manage risk in banks, prudential supervision, regulation and risk management; The role played by the foreign exchange market,the objectives of monetary policy, the role of financial markets in the operation of monetary policy. To adhere to the University’s blended learning policy, this unit will be offered by means of online short videos (100 minutes) followed by an extended workshop (50 to 100 minutes) per week. Students watch online short videos, complete and submit weekly workshop questions, and then attend an extended workshop later in the following week. For the first week’s extended workshop, there will be a general introduction session for this unit.
- Final Exam (50%)
- Weekly Tutorial Questions (30%)
- Research Report (20%)