Why people save their money in banks? Why we need financial instruments? How to consider the risk and return of investments? The monetary policy of central bank will surely affect our daily lives but how? Basic knowledges about money and finance is very important to everyone.
The course Money, Banking and Financial Markets deals mainly with the basic financial concepts and principles; it introduces the evolution of financial system and explains the current phenomena and development trends in the field of money and finance with practical examples. Through the study of this course students are expected to acquire the abilities to analysis and solve realistic financial problems, improve their social science accomplishments and lay a necessary theoretical foundation for their future study.
Objectives:
Knowledge and understanding of
1. The concept for financial system, including money, financial instruments, financial markets, surplus and deficit sectors and the regulators;
2. The concept of money and its developments;
3. The structure of interest rate. Explain the pricing models of financial instruments;
4. The structure of financial institutions like banks. The basic acknowledge of banking and the management of banking;
5. The money supply and the central bank. How can a central bank control the money supplywith their tools and monetary policies;
6. The currency equilibrium and the functions of money demand. This part combines monetary policy and central bank. In this part the money supply will be explained with central bank behaviors and macroeconomic model.
Chapter 1 Why Study Money, Banking, and Financial Markets?
(1) An Overview of the Financial System : What is the financial system?
test 1-1
Chapter 2 Introduction of Financial Markets
(1)Introduction of financial markets
(2)Money market
(3)Capital market
test 2-1
Chapter 3 What Is Money
(1) Evolution of the payments system
(2) Gresham’s Law
test 3-1
Chapter 4 The Meaning of Interest Rates
(1)interest rates and present value
(2) Credit market instruments (1)
(3) Credit market instruments (2)
Self-practices & Exercises
Exercise for chapter 4
Chapter 5 The Behavior of Interest Rates
5.1Supply and Demand in the Bond Market (1)
5.2Supply and Demand in the Bond Market (2)
5.3 The Liquidity Preference Framework
test 5
Chapter 6 The Risk and Term Structure of Interest Rates
6.1 The Structure of Interest Rates
6.2 The Structure of Interest Rates(2)
6.3 Term Structure of Interest Rates
6.4 Term Structure of Interest Rates(2)
6.5 Term Structure of Interest Rates (3)
test 6
Chapter 7 Pricing Stocks
7.1 Pricing a stock (1)
7.2 Pricing a stock (2)
7.3A case about market prices
Exercise 7
Chapter 8 Derivative Instrument
8.1 Fnancial derivative instrument
8.2 Forward
8.3 A Financial forward:FRA
8.4 Future
8.5 Option
8.6 swap
test 8
Chapter 9 An Economic Analysis of Financial Structure
9.1 Basic Facts about Financial Structure
9.2 Asymmetric Information- The Lemons Problem
9.3 Asymmetric Information:Adverse Selection
9.4 Asymmetric Information- Moral hazard
test 9
Chapter 10 Banking and the Management of Financial Institutions
10.1 Bank’s balance sheet (1)
10.2 Bank’s balance sheet (2)
10.3 Basic banking
10.4 Bank Management-Liquidity Management
10.5 Bank Management Interest rate risk management(1)
10.6 Bank Management- Assets, liabilities and off-balance sheet Activities
10.7 Bank Management Interest rate risk management(2)
test 10
Chapter 11
11.1An introduction of the regulatory system
Chapter 12 The Money Supply Process
12.1 Monetary Base
12.2 Multiple Deposit Creation
test 12
Chapter 13 Demand of Money and Inflation
13.1 Demand of money
13.2 Inflation
test 13
Chapter 14 Tools of Monetary Policy
14.1 The Market For Reserves and the inter-bank offered rate
14.2 Standing Lending Facility
14.3 The effects of the monetary policy instruments
test 14
Chapter 15 The Conduct of Monetary Policy
15.1 Goals of Monetary Policy
15.2 How a central bank achieves the goals of monetary policy
15.3 Examples of The Conduct of Monetary Policy(1)
15.4 Examples of The Conduct of Monetary Policy(2)
test 15
宏观经济学,微观经济学,会计学原理(部分内容)
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The Economics of Money, Banking and Financial Markets,12th Global edition,Frederic S Mishkin, 2012, Prentice Hall.
Basic Finance, Herbert B. Mayo, 9th edition, 2008, Tsinghua University Press.