| Semester 2, 2020 Online | |
| Short Description: | Financial Mkts & Instruments |
| Units : | 1 |
| Faculty or Section : | Faculty of Business, Education, Law and Arts |
| School or Department : | School of Commerce |
| Student contribution band : | Band 3 |
| ASCED code : | 081101 - Banking and Finance |
| Grading basis : | Graded |
Staffing
Examiner:
Requisites
Pre-requisite: FIN8201
Other requisites
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at .
Rationale
A study of financial markets and instruments involves an examination of the working of different types of financial markets and the characteristics of the different instruments used by companies and governments. A clear understanding of financial markets and instruments is essential for the practising finance manager. It would help him/her to effectively manage risk, raise new capital, and invest surplus funds. These concepts are also invaluable for financial service professionals and fund managers.
Synopsis
This course examines the structure, operation and performance of the global financial system, using principles of financial and monetary economics. Students are introduced to a selection of financial markets, institutions and instruments, the operations of which largely determine key financial variables that affect decisions to save and invest in the real economy. The main components of the Australian financial system and how they relate to major markets in the world are explained. In addition, a number of uniquely international financial institutions are examined, and a number of contemporary topics such as the recent global financial crisis are discussed.
Objectives
On successful completion of this course, students should be able to:
- apply basic financial economic theoretical skills to explaining the workings of the domestic and international financial systems;
- demonstrate a working knowledge of the institutional framework for financing economic activity by applying it to specific settings;
- discuss issues covering the monitoring, regulation, structure, conduct and performance of both the domestic and international financial system;
- demonstrate a working knowledge of the financial products that are available and their applications;
- acquire an introductory understanding of risk management concepts and apply it to specific settings;
- demonstrate an ability to effectively communicate the results of an analysis;
- demonstrate the creativity required of a financial services professional through innovative and original analysis and reporting.
Topics
| Description | Weighting(%) | |
|---|---|---|
| 1. | Introduction to financial markets and institutions; financial calculations | 5.00 |
| 2. | Commercial banking | 10.00 |
| 3. | Interest rates, yield curve and monetary policy | 15.00 |
| 4. | Debt securities and markets | 20.00 |
| 5. | Interest rate risk management | 15.00 |
| 6. | Equity markets | 15.00 |
| 7. | Foreign exchange markets | 10.00 |
| 8. | Contemporary issues in finance | 10.00 |
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from (unless otherwise stated). (https://omnia.usq.edu.au/textbooks/?year=2020&sem=02&subject1=FIN8202)
Please for alternative purchase options from USQ Bookshop. (https://omnia.usq.edu.au/info/contact/)
Viney, C & Phillips, P 2019, Financial institutions, instruments and markets, 9th edn, McGraw-Hill, Sydney, New South Wales.
Reference materials
Reference materials are materials that, if accessed by students, may improve their knowledge and understanding of the material in the course and enrich their learning experience.
Calomiris, CW & Haber, SH 2014, Fragile by design: the political origins of banking crises and scarce credit, Princeton 精东传媒app Press, Princeton, New Jersey.
(electronic resource.)
(electronic resource.)
Hunt, B, & Terry, C 2018, Financial institutions and markets, 8th edn, Cengage Learning Australia, Melbourne, Victoria.
Kidwell, D, Brimble, M, Basu, A, Lenten, L, Docherty, P & Mazzola, P 2019, Financial markets, institutions and money, 4th edn, Wiley, Milton, Queensland.
Krishnamurti, C (ed) 2013, FIN8202 financial markets and instruments, 2nd edn, Pearson Australia, Sydney, New South Wales.
Madura, J 2017, Financial markets and institutions, 12th edn, South-Western Cengage Learning, Mason, Ohio.
Student workload expectations
| Activity | Hours |
|---|---|
| Assessments | 40.00 |
| Directed 精东传媒app | 36.00 |
| Private 精东传媒app | 89.00 |
Assessment details
| Description | Marks out of | Wtg (%) | Due Date | Notes |
|---|---|---|---|---|
| QUIZ 1 | 15 | 15 | 20 Aug 2020 | (see note 1) |
| QUIZ 2 | 15 | 15 | 10 Sep 2020 | |
| ASSIGNMENT | 10 | 10 | 08 Oct 2020 | (see note 2) |
| ONLINE EXAMINATION | 60 | 60 | End S2 | (see note 3) |
Notes
- The online computer-marked answer quiz, available through 精东传媒appDesk, will comprise multiple choice questions on a set of textbook chapters.
- The assignment will be posted on 精东传媒appDesk early in the semester. It may require students to research a given contemporary topic and analyse critically a set of issues. As such it would test student's ability to understand the complexities of global markets and institutions and provide critical analysis. The assignment might be more problem or quantitative oriented and require the use of Excel to make calculations and display quantitative relationships.
- This will be an online exam. Students will be provided further instruction regarding the exam by their examiner via 精东传媒appDesk.
Important assessment information
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Attendance requirements:
Online: There are no attendance requirements for this course. However, it is the students' responsibility to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.
On-campus: It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration. -
Requirements for students to complete each assessment item satisfactorily:
Due to COVID-19 the requirements for S2 2020 are: To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks for that item.
Requirements after S2, 2020:
To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.) -
Penalties for late submission of required work:
Students should refer to the Assessment Procedure (point 4.2.4) -
Requirements for student to be awarded a passing grade in the course:
Due to COVID-19 the requirements for S2 2020 are: To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course.
Requirements after S2, 2020:
To be assured of receiving a passing grade a student must obtain at least 50% of the total weighted marks available for the course (i.e. the Primary Hurdle), and have satisfied the Secondary Hurdle (Supervised), i.e. the end of semester examination by achieving at least 40% of the weighted marks available for that assessment item.
Supplementary assessment may be offered where a student has undertaken all of the required summative assessment items and has passed the Primary Hurdle but failed to satisfy the Secondary Hurdle (Supervised), or has satisfied the Secondary Hurdle (Supervised) but failed to achieve a passing Final Grade by 5% or less of the total weighted Marks.
To be awarded a passing grade for a supplementary assessment item (if applicable), a student must achieve at least 50% of the available marks for the supplementary assessment item as per the Assessment Procedure (point 4.4.2). -
Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the aggregate of the weighted marks obtained for each of the summative assessment items in the course. -
Examination information:
Due to COVID-19 the requirements for S2 2020 are: An Open Examination is one in which candidates may have access to any printed or written material and a calculator during the examination.
Requirements after S2, 2020:
This will be an open examination. Candidates may have access to any printed or written material and a calculator during the examination. -
Examination period when Deferred/Supplementary examinations will be held:
Due to COVID-19 the requirements for S2 2020 are: The details regarding deferred/supplementary examinations will be communicated at a later date.
Requirements after S2, 2020:
Any Deferred or Supplementary examinations for this course will be held during the next examination period. -
精东传媒app Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene 精东传媒app policies and practices. These policies can be found at .
Assessment notes
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Referencing in assignments:
Harvard (AGPS) is the referencing system required in this course. Students should use Harvard (AGPS) style in their assignments to format details of the information sources they have cited in their work. The Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at .