SFB13114 Global Markets and Institutions (Autumn 2017)

The course is connected to the following study programs

Compulsory for studentes on the Business Administration Programme, specializing in International Business.

Optional for other students on the Business Administration Programme.

Prerequisites

Foundation courses in B&A studies in economics (micro- and macro) and introduction to finance, as Microeconomics, Macroeconomics, Finance & Investment.

Lecture Semester

5th semester (autumn).

The student's learning outcomes after completing the course

Knowledge outcomes
The student acquires knowledge on how the modern financial system is designed, what is the structure and function of the system and how financial markets and financial institutions work together. Student should get insight in different segments of the financial markets and their complexity and get understanding for necessity for centralized regulation and control. He/she should also develop analytical thinking and ethical judgments by studying recent financial crises causes and their outcomes.

Skills
The student will be able to construct and explain models, make calculation of interest rates, profits, present and future value of financial investments and other simple exercises. He/she will prove his/her skills for information searching and ability to select and evaluate its relevance and quality.

General competence
The student will get better insight into a complex ground of finance and better understanding of the international financial system. Reflect on ethical dilemmas of quick and big money turnover for societies and social groups.

Content

The course should give students basic knowledge of how the financial markets function, and how institutions cope with and respond to financial market development in various financial systems

• Overview of the financial system
• Understanding financial markets - the money markets, bond market, FOREX
• Financial institutions: the banking sector and non-banking sector
• Why and how the financial system is regulated and controlled
• The financial crisis and its consequences in a global economy
• Ethics in finance

Forms of teaching and learning

Lectures, group presentations, discussions. Teaching and learning is basically group centered with established groups. There are scheduled compulsory tutorials and classes, apart from self-initiated consultations and self-initiated cooperation.

Workload

The course will give the student approximately 280 hours of work.

Coursework requirements - conditions for taking the exam

Teaching and learning is based on lectures and group work.

• Scheduled compulsory tutorials and classes, apart from self-initiated group work.
• Obligatory exercises/hand-ins and group presentations.
• Paper version of presentation, improved after class discussion and teacher's comments, or other hand-in exercises must be approved by the teacher and submitted at the reception within the deadline.
• Students must get approved hand-ins to be allowed to take the final examination.

All coursework must be approved before signing up for the final exam.

Examination

A 4-hour individual written examination
Aids permitted: A mother tongue-English/English-mother tongue dictionary. Calculator.
Grades: A-F.
An updated list of accepted resources that may be used during the exam will be available on the Studentweb before the exam.

The students have the right to complain on the grades given on the written examination.

If a student gets F, the re-sit exam might be arranged in June, in case three students sign up for the re-sit. If less than three apply for re-sit, the next exam will be a regular exam next autumn. Students must be aware of that content, requirements and textbook may have changed, and it is a student's responsibility to check it and get updated. Students have to sign up for the exam within the deadline.

Course evaluation

To improve the course, we need the evaluations from the students. The course is evaluated by the students and the evaluations from the students are treated by the staff and the faculty's committee for quality of education.

Literature

The reading list was last updated 20.06.2016. Changes can be made before semester start.

Mishkin, Frederic S., Matthews K., Giuliodori M., The Economics of Money, Banking & Finacial Markets, European edition, Pearson 2013

Supplementary text books:
Mishkin, Frederic S: The Economics of Money, Banking, and Financial Markets, Business School Edition, 3rd ed. Pearson 2013, ISBN 978-0-13-304793-6

Hubbard, R. Glenn, O'Brien, Anthony Patrick, Money, banking, and the financial system Pearson, Boston 2012 ; ISBN: 978-0-13-272201-8

Valdez, Stephen: An introduction to global financial markets / Stephen Valdez, Philip Molyneux. - 7th ed. - Basingstoke : Palgrave Macmillan, 2013

Mishkin, Frederic S, Eakins, Stanley G (2011). Financial Markets & Institutions, 7th ed., Boston: Pearson Prentice Hall.

Mishkin, Frederic S, Eakins Stanley : Financial Markets and Institutions: Global Edition, 8/E, Pearson 2014 (or later edition)

Howells, Peter & Keith Bain. Financial Markets and Institutions. 5th ed. FT and Prentice Hall 2007

Howells, Peter & Keith Bain, The Economics of Money, Banking and Finance. 3rd ed. FT Prentice Hall., 2008, 602 p.