This module offers a broad introduction to the workings of the global financial system, the dynamics of the main financial markets, the nature and purpose of key financial institutions and the role played by central banks and regulatory agencies. An important part of the module focuses on the recent global financial crisis, reviewing its causes and consequences, as well as evaluating the merits of government intervention schemes in the U.S. and Europe.
Module content:
- Capital Markets
Explore the financial markets, debt and equity, primary and secondary. Discuss the nature of common stock and determinants of valuation. Identify the characteristics and valuation methodologies for various types of fixed income securities. The role and structure of the Irish Stock Exchange. Stock exchange listings on the Main Market, A.I.M. etc. Merits and criticisms of going public. Stock market indices.
- Money Markets
Money markets and money market instruments
- Financial Institutions
Banks and other financial institutions. Bank balance sheet and income statement.
Bank reserve and capital requirement. Bank liquidity, solvency and profitability.
Banking system and the creation of money.
- Financial Regulation
Role of the central bank, balance sheet of the central bank, tools of monetary policy.
- Financial Crisis
Causes of the recent financial and economic crisis. Securitisation, credit derivatives and credit default swaps. Role of banks and credit rating agencies. Recent government action, fiscal stimulus etc. Recent financial and economic history.
Learning and Teaching Methods: The course will be delivered through a combination of lectures and on line resources. The learning and teaching methods employed will include, discussion, problem-solving exercises, presentations, self-directed learning, case studies, readings and computer-based learning.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |