OPF:FIUBAPOF Principles of Finance - Course Information

FIUBAPOF Principles of Finance

Extent and Intensity

2/1/0. 6 credit(s). Type of Completion: zk (examination).

Teacher(s)

prof. Ing. Daniel Stavárek, Ph.D. (lecturer)

Guaranteed by

prof. Ing. Daniel Stavárek, Ph.D.
Department of Finance and Accounting – School of Business Administration in Karvina
Contact Person: Ing. Irena Szarowská, Ph.D., MPA

Course Enrolment Limitations

The course is only offered to the students of the study fields the course is directly associated with.

fields of study / plans the course is directly associated with

• Economics and Management (programme OPF, B_EME)

Syllabus

• 1. Financial system
  Financial system as a complex of financial instruments, financial markets and financial intermediaries. Functions of financial system. Transition of savings into investments. Lenders and borrowers. Types of financial systems. M-system, B-system. Cross-country comparison. The financial system and the real economy. Financial system regulation. Information asymmetry.
  2. Money
  Concepts of money, role of money in economy, functions of money. Types of money. Evaluation of money. Banks and money. Monetary base, money supply, monetary aggregates. Money multiplier. Process of money multiplication. Deposit multiplier. Money market and effect of money on economy. Theory of money and main differencies in theories of money.
  3. Monetary policy
  Definition of monetary policy, its aims. Development and changes in monetary policy strategy. Implementation of monetary policy. Transmission mechanism of monetary policy. Instruments of monetary policy. Types of monetary policy. Expansive and restrictive monetary policy. Central bank and its independence. Principles of inflation targeting.
  4. Interest rates
  Basics of interest rates. Interest and interest rate. Real and nominal interest rates. Fisher effect. Determinants of interest rates. Term structure of interest rates, normal and inverted yield curve, effect of inflation. Risk and interest rate structure. Interest rates in banking practice. Interest rates of central bank. Interest rates of commercial banks. Time value of money. Present and future value of cash flows.
  5. Securities
  Financial instruments, importance of securities. Materialized and dematerialized securities. Money market instruments. Capital market instruments. The basics of equity and debt securities. Shares, types of shares, operations involving shares. Holder rights, returns and risk stemming from shares' ownership. Bonds, types of bonds, operations involving bonds. Returns and risk stemming from bonds' ownership. Treasury bills, commercial papers, bills of exchange. Yield of securities. Bonds and shares evaluation.
  6. Financial markets
  Classification of financial markets. Description of primary and secondary market, equity market, bond market, money and capital markets, stock exchanges and OTC markets. Financial market participants. Risk, performance, development and efficiency of financial markets. Trading in financial market. Derivatives. Market capitalization, index. Auctions.
  7. Financial institutions
  Definition of financial institutions. Classification of financial institutions. Description of depository and non-depository institutions. Banks and their position among other financial institutions. Saving banks, building societies, saving unions and mutual banks. Insurance companies. Collective investment, mutual funds, investment companies, investment funds, investment banks. Pension funds.
  

Language of instruction

English

Further Comments

Study Materials

• Enrolment Statistics (Winter 2021, recent)
  
• Permalink: https://is.slu.cz/course/opf/winter2021/FIUBAPOF