FIN901 Money, Banking and Financial Markets

School of Business Administration in Karvina
Summer 2010
Extent and Intensity
0/2/0. 5 credit(s). Type of Completion: zk (examination).
Guaranteed by
prof. RNDr. Stanislav Polouček, CSc.
Department of Finance and Accounting – School of Business Administration in Karvina
Course Enrolment Limitations
The course is offered to students of any study field.
Course objectives (in Czech)
The goal of the course is to explain basic features of financial system. The course is an introductory course for all economic majors. It covers topics as a conception of money and functions of money, a position and role of financial institutions, financial instruments and financial markets in a financial system. It considers specific conditions of the Czech Republic transition onto a market economy and recent changes in European Union, respectively in European Monetary Union.
Syllabus (in Czech)
  • Topics covered:
    1. Financial system
    Financial system as a complex of financial instruments, financial markets and financial intermediaries. Lenders and borrowers. Transition of savings into investments. The financial system and the real economy.
    2. Money and financial system
    The definition of money. Controlling the money supply. Demand for money. Money market equilibrium. The transmission mechanism of monetary policy. Governments, inflationary incentives and central bank´s independence.
    3. Interest rates and security prices
    The level of interest rates. The structure of interest rates. Theories of interest rate determination. The role of central banks. The effect of term. The effect of risk. Expectations and interest rates.
    4. Financial instruments
    Bonds: types and characteristics. Bond yields. Eurobonds. Company shares: types, characteristics and returns. Equity pricing. Mortgages and mortgage-backed securities. Options, swaps and other derivatives.
    5. Financial markets
    Securities markets and market participants. Primary and secondary markets. Money markets and capital markets. Stock exchanges and OTC markets. Insider trading. Financial markets regulation.
    6. Financial institutions
    Depository institutions. Thrift institutions. Insurance companies. Securities firms and investment banks. Finance companies. Mutual funds. Pension funds. Risk management in financial institutions. Regulation of financial institutions.

Literature
    required literature
  • Madura, J. Financial Markets and Institutions. Saint Paul etc., West Publishing Company, 1992. ISBN 0-314-87735-5. info
    recommended literature
  • SAUNDERS, A., CORNETT, M.M. Financial Markets and Institutions.Financial Markets and Institutions. A Modern Perspective. Boston etc.: McGraw-Hill Irwin, 2001. ISBN 0-07-234892-5. info
  • HOWELLS, P.,BAIN, K. The Economics of Money, Banking and Finance. A European Text. Addison Wesley Longman, 1998. ISBN 0582-27800-7. info
  • FABOZZI, F.J., MODIGLIANI, F., FERRI M.G. Foundations of Financial Markets and Institutions. Englewood Cliffs, N.J. Prentice-Hall, 1994. ISBN 0-13-328980-X. info
Language of instruction
Czech
Further comments (probably available only in Czech)
The course can also be completed outside the examination period.
The course is also listed under the following terms Summer 2009, Summer 2011, Summer 2012.
  • Enrolment Statistics (Summer 2010, recent)
  • Permalink: https://is.slu.cz/course/opf/summer2010/FIN901