Money, Banking and Financial Markets
Module Code 5ECON005W
Module Level 5
Length Session Two, Three Weeks
Site Central London
Host Course London International Summer Programme
Pre-Requisite None
Assessment 75% Examination, 25% Group Report
Summary of module content
This module is designed to provide an introduction to the flow of funds in the economy,
the banking sector and to financial markets and systems, all of which are essential to
the functioning of modern economies. Although the module is about financial systems
in general, there will be frequent reference to contemporary issues and problems, and
to their historical antecedents. The approach will incorporate a blend of published
economic and financial data, and as far as possible, international comparisons.
Learning outcomes
By the end of the module the successful student will be able to:
1. Explain the conceptual framework for comparing the financial systems of
different economies.
2. Distinguish between different types of financial system identifying components
and appreciating the significance of particular financial developments.
3. Apply analytical frameworks and use relevant economic principles to describe
the role and operation of money markets, financial markets and institutions
4. Disaggregate and assemble data to critically evaluate financial systems,
including their structure, organisation and limitations
5. Collaborate within a group, appreciating different cultures, receiving and
providing peer feedback, taking responsibility for own task and for negotiation
with others on ideas and output.
6. Communicate information accurately and effectively both orally and in writing.
Course outcomes the module contributes to:
As an option module this does not contribute to course outcomes.
Indicative syllabus content
x Financial systems compared: essential components of financial systems; bank
based, market based economies; financial developments; the flow of funds
between the sectors and the process of intermediation and growth
x Financial markets and institutions: Participants and institutions involved in
financial markets; Securities traded in these markets
x Money and Money Markets: monetary aggregates; the supply of money; credit
creation; the demand for money.
x Banking industry: types of banks; the business of banking; competition and
bank consolidation; financial innovation
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x Central banking: The role of central banks and functions of central banks; ;
policies of central banks; current issues in central banking
x History of financial crisis: Mechanics of financial crisis; past financial crises;
policy responses
Teaching and learning methods:
The module will be delivered using a combination of weekly lectures, seminars and
workshops.
Activity type Category Student learning and
teaching hours*
Lecture Scheduled 24
Seminar Scheduled 24
Practical Classes and workshops Scheduled
Total Scheduled 48
Structured independent study Independent 42
Module and course-based general Independent 42
study
Working on and taking assessments Independent 68
Independent study Independent 152
Total student learning and teaching 200
hours
*the hours per activity type are indicative and subject to change.
Assessment rationale
The assessment strategy for this module is based on integrated formative and
summative methods of assessments:
The Group Report will evaluate the depth of knowledge and the application of key
concepts learnt in the curriculum. Student will participate in a group to prepare and
submit a report on a topic, using a range of data sources. Each group will receive
feedback from the tutors. The report will assess breadth of learning, academic writing
and enhance students’ skills of teamwork and cooperation.
The examination will assess students’ conceptual and analytical knowledge of different
financial systems, the operation of money and financial markets and the role of
financial institutions.
Assessment criteria
The criteria for the group report will focus on aspects such as the knowledge
content, the rigour of arguments offered and the clarity of taught, the use of
data to support the analysis, structure and the quality of presentation.
In the examination the focus is inevitably on assessing the achievement of the
learning outcomes of the module in terms of knowledge and analysis, and the
ability to display this under time constraint.
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Assessment methods and weightings
Assessment Weightin Qualifyin Qualifyin LOs Assessment
name g% g mark g set
%
Group Report 25 30 n/a 1,4,5,6, Report (2,000 words)
Examination 75 30 n/a 1,2,3 Closed book exam
(2¼ hours)
Synoptic assessment: Option; so does not contribute to synoptic assessment
Sources
Essential Reading List
Ball, L.M, (2012), Money, Banking and Financial Markets, Worth
Mishkin, F, (2013), The Economics of Money Banking & Financial Markets (European
Edition), Harlow: Pearson
Further reading:
Howell, P, & Bain, K, (2007), Financial Markets & Institutions (5th ed), Harlow: Pearson
(Prentice Hall)
Pilbeam, K, (2010) Finance & Financial Markets (3rd ed) Basingstoke: Palgrave
Macmillan
Additional references:
Bank of England Quarterly Bulletin
OECD Financial Market Trends (tri-annual)
Bank for International Settlements
The Economist
Financial Times
www.ecb.org
www.bis.org
www.frb.org
www.IMF.com
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