FIN06011 2016 Financial markets

General Details

Full Title
Financial markets
Transcript Title
Financial markets
Code
FIN06011
Attendance
N/A %
Subject Area
FIN - Finance
Department
BUS - Business
Level
06 - NFQ Level 6
Credit
05 - 05 Credits
Duration
Semester
Fee
Start Term
2016 - Full Academic Year 2016-17
End Term
9999 - The End of Time
Author(s)
Fergal Keane
Programme Membership
SG_BFINA_H08 201600 Bachelor of Business (Honours) in Finance and Investment SG_BEMBE_G07 201600 Bachelor of Business Embedded Award BB L7 in Finance and Investment SG_BEMBE_G06 201600 Higher Certificate in Business in Embedded Award BB(Hons) Finance and Investment
Description

This module introduces the learner to financial markets; examining both the products used and the participants.  The core concepts of interest rates and foreign currencies will be discussed and derivative instruments that help manage risks are presented.  This module concludes with a brief discussion on global regulatory requirements for financial markets.

Learning Outcomes

On completion of this module the learner will/should be able to;

1.

Discuss the role of deposit taking institutions

2.

Examine the function and instruments of the money market and the capital market

3.

Analyse the relationship between nominal and real interest rates

4.

Recognise exchange rate risk and discuss the participants in foreign exchange markets

5.

Describe various derivatives and explain how they are used to hedge risk or for speculation purposes

6.

Discuss the regulation of international financial markets

Teaching and Learning Strategies

Learners will be presented with a balance of theories, exercises and case studies to ensure that they have a practical appreciation of Financial Markets

Module Assessment Strategies

Students will conduct a virtual exercise in financial market particpation (trade on markets, hedge risks, etc) to reinforce theories.

There will also be a short assessment half way through the semester to ensure students keep abreast of topics as they are encountered.

Final examination will assess all learning outcomes

Repeat Assessments

Repeat examination will be scheduled where required.  A student who has not passed overall, but who has successfully completed CA can repeat exam only; however a student who has not completed any CA may not have met all learning outcomes sufficiently and so may be required to submit practical work as specified by the lecturer in addition to, or instead of, a repeat exam.

Indicative Syllabus

Financial System

  • Define what is meant by "the Financial System" and explain the role of this system
  • Describe the different participants in the Financial System

Deposit Taking Institutions

  • Explain the role of Deposit Taking Institutions
  • Examine the differences between the balance sheet of a deposit taking institution and other businesses

Markets

  • Differentiate between Money Markets and Capital Markets
  • Identify the participants of and the instruments used in both Money Markets and Capital Markets

Interest Rates

  • Discover what interest rates are and how they are set
  • Examine the difference between Nominal and Real interest rates
  • Identify the risks presented by interest rate fluctuations and how these can be managed

Foreign Exchange

  • Explain what is meant be a foreign exchange rate.
  • Explore the determinates of exchange rate and how the market sets specific rates
  • Identify the risks presented by exchange rate fluctuations and how these can be managed

Derivatives

  • Explain what is meant by derivative instruments
  • Classify the different types of derivative insturements and explain how they work
  • Identify the users of derivative instruments and how they use them

Regulation

  • Examine the potential for market crises given the International nature of Financial Markets
  • Discover global and local regulatory initiatives

Coursework & Assessment Breakdown

Coursework & Continuous Assessment
40 %
End of Semester / Year Formal Exam
60 %

Coursework Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Continuous Assessment Case studies, articles, etc Formative Practical Evaluation - % OnGoing 1,2,3,4,5,6
2 Continuous Assessment Short exam (written or multi choice) Continuous Assessment Assessment 10 % Week 6 1,2,3,4
3 Group Project Practical exercise (virtual trading, hedge a position) complete with presentation to peers Continuous Assessment Group Project 30 % Week 11 2,3,4,5,6

End of Semester / Year Assessment

Title Type Form Percent Week Learning Outcomes Assessed
1 Final Exam Final Exam Closed Book Exam 60 % End of Semester 1,2,3,4,5,6
             
             

Full Time Mode Workload


Type Location Description Hours Frequency Avg Workload
Lecture Tiered Classroom Lecture 3 Weekly 3.00
Tutorial Flat Classroom Group discussions, PBL, etc 1 Weekly 1.00
Independent Learning UNKNOWN Group work, research, case studies 3 Weekly 3.00
Total Full Time Average Weekly Learner Contact Time 4.00 Hours

Required & Recommended Book List

Recommended Reading
2012 The Economist Guide to Financial Markets Profile Books(GB)
ISBN 178125107X ISBN-13 9781781251072
Recommended Reading
2012-01-23 Financial Times Guide to the Financial Markets (Financial Times Guides) FT Press
ISBN 0273730002 ISBN-13 9780273730002

From bestselling author Glen Arnold, this is a jargon-busting book that describes how financial markets work, where they are located and how they impact on everyday life. It assumes no specialised prior knowledge of finance theory and provides an authoritative and comprehensive run-down of the workings of the modern financial system.

Using real world examples from media such as the Financial Times, Arnold gives an international perspective on the financial markets with frequent comparisons in the workings of major financial centres such as the Bank of England and the City, the Federal Reserve System and Wall Street, the Japanese Central Bank, the European Central Bank and IMF and World Bank.

 

Recommended Reading
2013-07-17 Foundations of Financial Markets and Institutions Pearson Education Limited
ISBN 1292021772 ISBN-13 9781292021775

Module Resources

URL Resources

http://www.investopedia.com

http://www.economist.com

Other Resources

Online journals, business section of reputable newspapers

To be provided in class and via moodle

Additional Information

None