Overview

To provide the students an understanding of the influence of financial markets on a firm’s risk management and security valuation activities.

The course will cover the following:

• Main types of financial markets, financial intermediaries and financial instruments. • Central banks and their traditional roles as lenders of last resort in the modern world. • Interest rates and their determinants. • Role of commercial banks and their regulation. • Valuation of securities in different markets. • The Federal Reserve System.

Assessment Strategy

-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.

-good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.

-excellent -A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.

-another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.

Learning Outcomes

• Classify the types of financial markets by using quantitative methods for security valuation, interest rates and derivative calculations.

• Describe major financial markets and their associated securities structure.

• Determine the Federal Reserve System and its impact on monetary policies and interest rates.

• Discuss the role of financial intermediaries and the relationship between interest rate and security valuation.

• Explain the role of Central Banks and other regulators in the financial sector.