MONEY AND BANKING
- Course
- ECON332 - MONEY AND BANKING
- Department
- Economics - English - Undergraduate
- Course Type
- Course
- Status
- Required
- Language
- English
- Credit
- 3
- ECTS
- 7
- T+P+L
- 3 + 0 + 0
- Course Coordinator(s)
- -
- Prerequisite
- -
Course Description
This course is designed to explain the importance of money and banking to economic activity. This course offers a systematic analysis of monetary theories and the financial system. Apart from exposing students to different approaches in monetary analysis, the course places a special emphasis on the up-to-date analysis of how information costs affect financial structure and monetary policy. The course will cover the structure and importance of the financial system, the functions of money, behavior of interest rates, financial structure and asymmetric information, bank management and regulation, debates on macroeconomic and monetary policies, the targets and instruments of monetary policies, the transmission mechanism of monetary policy and its effectiveness, money and inflation, rational expectations and its applications.
MONEY AND BANKING
Evaluation Tools (Active Term)
No evaluation items have been defined.
Course outcomes
No course outcomes have been defined yet.
Course Syllabus
| Week | Topic |
|---|---|
| Week 1 | An Introduction to Money and the Financial System: Financial system and the economy; Financial markets; Financial institutions; Economic analysis as a tool. |
| Week 2 | Money and the Payment System: Money vs. barter; what can serve as money; the payment system; Measuring the money supply. |
| Week 3 | Financial Instruments, Financial Markets, and Financial Institutions : The purpose of the financial system; Risk sharing; Liquidity; Information; Debt and equity; Savers and borrowers. |
| Week 4 | 1. Future Value, Present Value, and Interest Rates: Comparing debt instruments; Present value; Yield to maturity; Bond yields and prices. |
| Week 5 | 2. Future Value, Present Value, and Interest Rates: Comparing debt instruments; Present value; Yield to maturity; Bond yields and prices. |
| Week 6 | 1. Understanding Risk: Definition of Risk, measuring risk, sources of risk; idiosyncratic and systematic risk. Reducing risk through diversification. |
| Week 7 | 2. 1. Understanding Risk: Definition of Risk, measuring risk, sources of risk; idiosyncratic and systematic risk. Reducing risk through diversification. |
| Week 8 | MIDTERM EXAM |
| Week 9 | MIDTERM EXAM |
| Week 10 | Bonds, Bond Prices, and the Determination of Interest Rates: Supply and demand in the bond market and loanable funds. |
| Week 11 | Risk and Term Structure of Interest Rates : Default risk; liquidity; Information costs; Taxation; Segmented market hypothesis; Expectations theory; Preferred habitat approach. |
| Week 12 | The Economics of Financial Intermediation : The role of financial intermediaries, solving the adverse selection problem. Moral Hazard: Problem and Solutions. Financial intermediaries and information costs |
| Week 13 | Regulating the Financial System: The sources and consequences of runs, panics, and crises. Regulation and supervision of the financial system. |
| Week 14 | REVISION |
| Week 15 | FINAL EXAM |
Reference Books & Course Materials
- 01 1. Schoenholtz, Cecchetti. Money, Banking, and Financial Markets, Fourth Edition, Mc Graw Hill.
- 02 2. Frederic S. Mishkin. The economics of money, banking and financial market. 7th edition. The Addison-Wesley Series in Economics
- 03 3. Reading materials on Moodle.
Learning Outcomes
No learning outcomes have been defined.
Program Outcomes
- P01 1. Recognized and applied all the learning tools and techniques learnt which they will implement throughout their lives and future careers.
- P02 2. Become confident in their knowledge and skills so that they can successfully study and work on their own.
- P03 3. Attained a high level of professionalism through the fundamental knowledge and skills gained in both marketing and digital fields.
- P04 4. Demonstrated a solid understanding of core business principles in the primary areas of digital marketing, web technologies, new media and management, as well as the interconnectedness of these disciplines in the running of an organization.
- P05 5. Been able to critically implement their knowledge and skills in both written, oral and digital forms to an intended audience, based on creative and analytical approaches.
- P06 6.Demonstrated their understanding of the ethical and protected use of various new media such as social media, mobile technology, web analytics, search engine optimization, and viral advertising in both their studies and careers.
- P07 7. Implemented best practices in business for planning, decision-making, and problem-solving based on collaborative work and studies.
- P08 8. Demonstrated effective communication skills in addition to in-depth of analysis and synthesis which are essential in multicultural educational and work contexts.
- P09 9. Demonstrated critical thinking characterized by the ability to define business problems with the evidence available, discern fact from opinion, determine underlying causes, formulate and evaluate potential solutions.
- P10 10. Been able to implement ideas and concepts through the development and creation of digital content for effective social media marketing strategies, and designing and evaluating the effectiveness of interactive web sites to increase web traffic flows, visibility, consumer satisfaction and response rates.
- P11 11. Embodied integrity in their work and actions, honor confidentiality, followed generally accepted codes of conduct in the digital marketing industry.
- P12 12. Devoted themselves to follow the codes of ethics, improve privacy issues with social media, conflict, and citizenship in order to frame a better understanding of digital marketing.
Po-Lo Matrix
The PO-LO matrix has not been populated yet.