Economics of Financial Markets

Module code: ECON 255

Module description

This module provides a conceptual framework into the main elements of modern finance. It uses economic theory to build simple asset models in order to learn (i) how the prices of financial securities are determined and (ii) how asset prices may reflect time preferences, uncertainty and risk. The module will also develop student's analytical skills by providing an understanding of the money market, capital market, derivatives markets and foreign exchange market. It will provide students with an understanding of the theory and practice of financial regulation as well as the mechanics of monetary policy.

Contact hours per student per year

• Lectures: 24 hours
• Tutorials: 22 hours

Assessments

• Mid-term test (45 mins): 40%
• Closed book exam (120 mins): 60%

Additional costs: No extra costs other than purchase of books