FIN805 Money and Financial Markets

School of Business Administration in Karvina
Winter 2006
Extent and Intensity
1/2/0. 6 credit(s). Type of Completion: z (credit).
Guaranteed by
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 objective of this course is to provide the student with a basic understanding of money and financial markets and how they relate to economic activity. The course is designed around four parts: Part I will cover topics concerning the role of money and the impacts of inflation; Part II will cover the basics of interest rates, rates of return, and interest rate determination, and asset pricing; Part III will cover the roles of individual commercial banks and capital markets in the economic development process; Part IV will introduce open-economy macroeconomic models that will illustrate the role monetary and fiscal policy can play in changing the level of investment in an economy (if time remains).
Syllabus (in Czech)
  • Struktura výkladu:
    1. Money and the Payments System
    2. Inflation and its Causes
    3. Interest Rates and Rates of Return
    4. Bond Pricing and Interest Rates
    5. Interest Rate Determination
    6. The Business of Banking
    7. The Money Market versus the Capital Market
    8. Monetary and Fiscal Policy Under Fixed and Flexible Prices
    Obsah kurzu:
    Part I - Money and Inflation
    1. Money and the Payments System
    ? Money Economy versus a Barter Economy
    ? Functions of Money
    ? Different Forms of Money
    ? Money Creation--Who Does It?

    2. Inflation and its Causes
    ? Measuring and Tracking Inflation
    ? Short-term Changes in the Price Level versus Sustained Inflation
    Case Study from History: Inter-war Germany and Hyperinflation
    Case Study for Contemporary Times: Bolivia; article from The Wall Street Journal (WSJ)
    "When Inflation Rate is 116,000%, Prices Change by the Hour"
    Case Study for Contemporary Times: The future of inflation; article from The Economist, "Murder, he wrote"
    Part II - Interest Rates and Bond Pricing
    3. Interest Rates and Rates of Return
    ? Real versus Nominal Interest Rates
    ? Rates of Return versus Interest Rates
    ? Various Published Interest Rates in the WSJ
    4. Bond Pricing and Interest Rates
    ? Definition of a Bond and the Bond Market
    ? Calculating the Value of Bonds
    Case Study for Contemporary Times: Using Bond Quotations in the WSJ
    ? Explaining the Difference in Interest Rates Between Different Bonds
    Case Study for Contemporary Times: inflation and bonds; article from The Economist, "Of beef, bushels, and bonds"

    5. Interest Rate Determination
    ? Supply and Demand for Bonds
    Case Study for Contemporary Times: The bond market; article from The Economist, "Cheers and fears"
    ? Government Control of Interest Rates versus the Free Market
    Case Study for Contemporary Times: Saving in poor countries; article from The Economist, "In pursuit of thrift"
    Part III - Financial Markets and Institutions
    6. The Business of Banking
    ? What Banks and Financial Markets Do for an Economy
    ? How Banks Make Money--A Bank's Balance Sheet
    Case Study For Contemporary Times: Bank mergers; article from The Economist, "The
    bankers marched in two by two..."
    ? Central Bank Regulation and The Banking Industry
    Case Study from History: The United States banking system before the Great Depression
    Case Study for Contemporary Times: Regulation of the banking industry; article from The Economist, "The domino effect: A survey of international banking"
    Case Study for Contemporary Times: Central banking in emerging economies; article from The Economist, "No strings attached"
    ? Central Bank Money Creation Through Private Banks--The Supply and Demand for
    Bonds Revisited

    7. The Money Market versus the Capital Market
    ? The Money Market versus the Capital Market
    Case Study for Contemporary Times: Emerging financial markets; article from The Economist, "How does your stockmarket grow?"
    Case Study for Contemporary Times: Emerging markets; article from The Economist, "Lessons of transition"
    Case Study for Contemporary Times: Financial speculation; article from The Economist, "Pennies from hell"
    Case Study for Contemporary Times: Consumption and share prices; article from The Economist, "Main Street's biggest fear"
    Case Study for Contemporary Times: Consumption and share prices; article from The Economist, "Look out below"
    Case Study for Contemporary Times: Mutual Funds; article from The Economist, "If Wall Street falters..."
    ? Market Efficiency and Regulation of Capital Markets
    Case Study for Contemporary Times: Financial reform in Central Europe; article from The Economist, "Time to take stock"
    ? Speciality Markets: Forward, Future, and Option Contracts
    ? Advanced Topic: Risk, Return, and Divers
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 Winter 1990, Summer 1991, Winter 1991, Summer 1992, Winter 1992, Summer 1993, Winter 1993, Summer 1994, Winter 1994, Summer 1995, Winter 1995, Summer 1996, Winter 1996, Summer 1997, Winter 1997, Summer 1998, Winter 1998, Summer 1999, Winter 1999, Summer 2000, Winter 2000, Summer 2001, Winter 2001, Summer 2002, Winter 2002, Summer 2003, Winter 2003, Summer 2004, Winter 2004, Summer 2005, Winter 2005, Summer 2006, Summer 2007, Winter 2007, Summer 2008.
  • Enrolment Statistics (Winter 2006, recent)
  • Permalink: https://is.slu.cz/course/opf/winter2006/FIN805