Postgraduate Course: Financial Markets and Institutions (CMSE11166)
Course Outline
| School | Business School |
College | College of Humanities and Social Science |
| Credit level (Normal year taken) | SCQF Level 11 (Postgraduate) |
Availability | Available to all students |
| SCQF Credits | 15 |
ECTS Credits | 7.5 |
| Summary | Managers in charge of the risk function in banks require background knowledge of the function of banks in a financial system, how interest rates, a key price for the banking business, are determined, how the markets in which some of the assets banks hold are exchanged and how markets determine prices for different types of products and securities. |
| Course description |
This course gives fundamental knowledge on the structure, function and role of the financial system in light of the complex web of links and interconnections with the banking sector. The course will cover financial intermediaries, financial instruments and the different markets where credit institutions are active players.
Syllabus
Overview of the Financial System
Interest Rates
Money Markets
Capital Markets: Bond Markets and Stock Markets
Foreign Exchange Markets and International Financial Markets
Hedging and Derivatives Markets
Depository Institutions and Contractual Saving Institutions
Securities Market Institutions and Investment Institutions
Financial Market Failure, Crises and Regulation
Student Learning Experience
Teaching involves 10 lectures and 4 tutorials. The course will possibly have lectures by one or two guest speakers. The learning outcomes will be achieved by information imparted in lectures, by the discussions and participation in tutorials, by the process of researching information and through writing the essay.
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Entry Requirements (not applicable to Visiting Students)
| Pre-requisites |
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Co-requisites | |
| Prohibited Combinations | |
Other requirements | None |
Information for Visiting Students
| Pre-requisites | None |
| High Demand Course? |
Yes |
Course Delivery Information
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| Academic year 2015/16, Available to all students (SV1)
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Quota: None |
| Course Start |
Semester 2 |
Timetable |
Timetable |
| Learning and Teaching activities (Further Info) |
Total Hours:
150
(
Lecture Hours 20,
Seminar/Tutorial Hours 4,
Summative Assessment Hours 2,
Programme Level Learning and Teaching Hours 3,
Directed Learning and Independent Learning Hours
121 )
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| Assessment (Further Info) |
Written Exam
70 %,
Coursework
30 %,
Practical Exam
0 %
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| Additional Information (Assessment) |
Exam, 2 hours, 70%
Assignment: 30%;
Form of Assessment:
The final exam consists of 5 questions. Students should attempt four out of five questions The questions will regard one of the topics discussed during the lectures, the tutorials or included in the required readings.
The essays should be based on one of the topics posted on Learn. The minimum length is 1,500 words; the maximum length is 2,500 words. Students will work on individual basis.
Assessment Criteria:
The essay will be marked using the University Taught Postgraduate Common Marking Scheme. The mark will express the overall quality, the accuracy and completeness of the work. The final exam will be marked using the University Taught Postgraduate Common Marking Scheme.
Dates of Assessment:
The list of essay topics will be posted on Learn by 4pm on Monday 1 February 2016.
Students are required to submit the essay online on Learn by 12 noon on Monday 7 March 2015.
Students are also required to hand in a hard copy of their assignments to the PG Office by the above deadline.
The degree examination will be held in May 2016. Registry will publish confirmation of the specific date and place before the Exam period begins on the University website. |
| Feedback |
All students will be given at least one formative feedback or feedforward event for every course they undertake, provided during the semester in which the course is taken and in time to be useful in the completion of summative work on the course. Such feedback may be at course or programme level, but must include input of relevance to each course in the latter case.
Feedback on formative assessed work will be provided within 15 working days of submission, or in time to be of use in subsequent assessments within the course, whichever is sooner. Summative marks will be returned on a published timetable, which has been made clear to students at the start of the academic year.
Students will gain feedback on their understanding of the material when they discuss their answers to the tutorial questions in the tutorials. Students may also ask questions in Lectures to assess their knowledge.
Feedback will comprise individual feedback on student essays, exam and overall mark feedback in form of report. |
| Exam Information |
| Exam Diet |
Paper Name |
Hours & Minutes |
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| Main Exam Diet S2 (April/May) | Financial Markets and Institutions | 2:00 | |
Learning Outcomes
On completion of this course, the student will be able to:
- understand and critically discuss economic principles behind the determination of interest rates.
- understand and critically discuss what determines the demand and supply of money.
- understand and critically discuss why financial institutions exist.
- understand and critically discuss how the prices of equities are determined and different degrees of stock market efficiency.
- understand and critically evaluate different types of money and bond markets instruments and how these markets work.
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Reading List
P. Howells and K. Bain (2007): Financial Markets and Institutions. Pearson, 5th Ed.
F.S. Mishkin and S.G. Eakins (2015): Financial Markets and Institutions. Pearson, 8th Ed. |
Additional Information
| Graduate Attributes and Skills |
Cognitive Skills:
After completing this course, students should be able to:
- apply interest rate concepts to values of certain types of securities;
- apply demand and supply concepts to understand price movements of different types of assets;
- analyse causes of changes in exchange rates;
- analyse the effects of moral hazard and information asymmetry on financial structure, bank and insurance company decisions.
Subject Specific Skills:
After completing this course, students should be able to:
- compute present value, real interest rates and duration;
- find the price of a stock given certain information. |
| Keywords | Financial Markets,Financial Instruments,Financial Institutions,Market Prices |
Contacts
| Course organiser | Dr Joosung Lee
Tel: (0131 6)51 1375
Email: Joosung.Lee@ed.ac.uk |
Course secretary | Miss Ashley Harper
Tel: (0131 6)51 5671
Email: Ashley.Harper@ed.ac.uk |
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