ECON 1009 - International Financial Institutions & Markets I

North Terrace Campus - Semester 1 - 2014

This course provides an introduction to the institutions, markets and securities that form the basis of modern financial and monetary systems. Australian as well as international economies and their financial systems will be considered with reference to current financial news and affairs. This course also introduces some of the main theories and quantitative concepts and methods used in finance and provides a sound basis for students progressing to the study of finance at higher levels within the University. At the same time, it is a valuable, self contained and up-to-date overview of international financial markets and institutions for non-specialists.

  • General Course Information
    Course Details
    Course Code ECON 1009
    Course International Financial Institutions & Markets I
    Coordinating Unit School of Economics
    Term Semester 1
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Quota A quota may apply
    Course Description This course provides an introduction to the institutions, markets and securities that form the basis of modern financial and monetary systems. Australian as well as international economies and their financial systems will be considered with reference to current financial news and affairs. This course also introduces some of the main theories and quantitative concepts and methods used in finance and provides a sound basis for students progressing to the study of finance at higher levels within the University. At the same time, it is a valuable, self contained and up-to-date overview of international financial markets and institutions for non-specialists.
    Course Staff

    Course Coordinator: Dr Steven Hail

    Office hours: To be advised 
    Office location: Nexus 10, Level 4, Room 4.43
    Course Timetable

    The full timetable of all activities for this course can be accessed from Course Planner.

    Two one hour lectures are scheduled at the following times:
    Monday 2.10pm - 3.00pm (Scott Theatre)
    Thursday 2.10pm - 3.00pm (The Braggs, G76, Bragg Lecture Theatre)

    Each student is also expected to attend a one hour tutorial each week. A full timetable of the tutorials can be found on the Course Planner at: http://access.adelaide.edu.au/courses/search.asp

    The lecture times will be used to explain the concepts, theories and models relevant to international finance and economics, whilst the tutorial time will be used to apply the acquired knowledge to practice questions. The tutorial questions will consist of theoretical, quantitative and analytical questions which will be posted on MyUni prior to the tutorials.

    Students are expected to study the course materials carefully and actively engage in class discussions. All work discussed in class and any submitted material will form the basis for the final examination.
  • Learning Outcomes
    Course Learning Outcomes
    On successful completion of this course students will be able to:

    1 To understand important financial economic principles
    2 To apply financial economic principles to solving problems
    3 To develop analytical skills
    4 To develop both independent learning and group work skills
    5 To develop verbal and non-verbal communication skills
    6 To understand the broader social consequences of financial economic decisions making
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)
    Knowledge and understanding of the content and techniques of a chosen discipline at advanced levels that are internationally recognised. 1
    The ability to locate, analyse, evaluate and synthesise information from a wide variety of sources in a planned and timely manner. 2
    An ability to apply effective, creative and innovative solutions, both independently and cooperatively, to current and future problems. 3,4
    Skills of a high order in interpersonal understanding, teamwork and communication. 4,5
    A commitment to continuous learning and the capacity to maintain intellectual curiosity throughout life. 6
    An awareness of ethical, social and cultural issues within a global context and their importance in the exercise of professional skills and responsibilities. 6
  • Learning Resources
    Required Resources
    Hunt B. & Terry C. (2011), Financial Institutions and Markets, 6th Edition, Cengage Learning
    Recommended Resources
    A number of links will be posted on MyUni as additional reading material.

    Bodie Z., Merton R., & Cleeton D. (2009), Financial Economics, 2nd edition, Pearson International Edition

    Viney C. (2011), Financial Market Essentials, McGraw Hill Australia

    Valentine et al. (2011), Fundamentals of Financial Markets and Institutions in Australia, Pearson
    Online Learning

    All of the material related to the course, e.g. tutorial questions, lecture slides, practice questions, a practice examination paper and the full details of each assessment task will be available on MyUni.

    To encourage collaborative learning, the course will also make heavy use of discussion boards on the MyUni webpage.

    There will be separate forums for each component of the course and students are strongly encouraged to use these forums for questions. The forums will be monitored regularly and managed by the lecturer-in-charge.

    The purpose of the forums is to encourage student’s collaborative learning and provide all students with equal access to information related to the course.

    Course Website: www.myuni@adelaide.edu.au

  • Learning & Teaching Activities
    Learning & Teaching Modes

    The course is based on the problem solving approach to learning.

    Phase 1: Concrete situation

    Identification of a real world case study.

    Phase 2: Definition

    Understanding the problem and defining the question of interest.

    Phase 3: Abstract conceptualisation

    Explain how the problem can be understood economically. Proposition of economic tools that can be applied to help answer the question.

    Phase 4: Implementation

    With the help of economic theory, choose an 'optimal' solution. Attention needs to be paid to the fact that tangible solutions are often required as a result of tangible problems.

    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.

    It is expected that students will devote 12 hours learning activities per week for this course if they expect to receive a pass mark.

    Learning Activities Summary

    Classes will be held weekly commencing as per study schedule below. Note that tutorials commence in Week 2.

    Membership of tutorial classes is to be finalised by the end of the third week of semester. Students wishing to swap between tutorial classes after this time are required to present their case to the lecturer-in-charge, but should be aware that such a request may not be approved.

    Tutorials are an important component of your learning in this course. The communication skills developed in tutorials by regularly and actively participating in discussions are considered to be most important by the School and are highly regarded by employers and professional bodies.

    Consultation and Communication

    Check your student email and MyUni as course-related announcements are communicated via email.

    Lecturer’s and tutors’ consultation times and locations are available also on MyUni.

    NOTE the following time scheduled is not completely fixed and some deviations from the schedule might occur. This is ONLY the proposed time schedule. You will be informed of any deviations from this proposed schedule by attending the lectures and checking any relevant information and announcements on MyUni.

    Week Lecture dates Topic Readings
    1 3 & 6 March
    No tutorials
    Introduction to Finance & the Financial System Chapter 1 (Hunt & Terry)
    2 13 March
    Tutorial 1
    Interest Rates and Financial Intermediaries Chapter 3 (Hunt & Terry)
    3 17 & 20 March
    Tutorial 2
    Allocating Resources over time (Part 1) Uploaded resource on Myuni
    4 24 & 27 March
    Tutorial 3
    Allocating Resources over Time (Part 2) Uploaded resource on Myuni
    5 31 March & 3 April
    Tutorial 4
    Household Saving & Investment Decisions Uploaded resource on Myuni
    Chapter 5 (Bodie, Merton & Cleeton)
    6 7 & 10 April
    Tutorial 5
    Introduction to Markets and principles of market valuation Chapter 5 (Hunt & Terry)
    BREAK 14 April-25 April  BREAK
    7 28 April & 1 May Tutorial 6 The Bond Market Chapter 8 (Hunt & Terry)
    8 5 & 8 May
    Tutorial 7
    The Share Market Chapter 9 and some parts of Chapter 10 (Hunt & Terry)
    9 12 & 15 May
    Tutorial 8
    The Money Market Chapter 7 (Hunt & Terry)
    10 19 & 22 May
    Tutorial 9
    Principles of Risk Management Chapter 15 (Hunt & Terry)
    11 26 & 29 May
    Tutorial 10
    The Stability of Deposit Taking Institutions Chapter 4 (Hunt & Terry)
    12 2 & 5 June
    Tutorial 11
    Case Studies in Financial Crises (If time allows) Additional Reading on My Uni

    Chapter 12, Viney C. (2011), ”Financial Market Essentials” , McGraw Hill
    13 9 June
    Tutorial 12
    Finishing off and Revision Review
    Specific Course Requirements
    HURDLE REQUIREMENT
    To gain a pass mark in this course, at least 50 per cent must be obtained overall. There are no separate requirements for individual assessments.
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary
    Tutorial assignments 20%
    Tutorial participation 5%
    Mid-semester test 10%
    Optional group assignment 15%
    Final Examination 50% (or more)
    Assessment Related Requirements
    • To gain a pass mark in this course, at least 50 per cent must be obtained overall. There are no separate requirements for individual assessments.
    • Legible hand-writing and the quality of English expression are considered to be an integral part of the assessment process.
    • Marks will not be awarded for answers that cannot be read.
    Assessment Detail

    Tutorial assignment 20% (redeemable in final exam):

    Students will be asked to submit written answers to the indicated questions on the final page of the weekly tutorial exercises, which will be available to download from MyUni on a weekly basis. These should be submitted at the beginning of the tutorial class every week starting in week 2. There will be a total of 10 tutorial assignments of which the best 8 will be counted for assessment. The questions for the tutorial assignments will relate to material that was covered in the lectures in the previous weeks.

    Due Date: At the beginning of your enrolled tutorial in week 2,3,4 5,6, 7,8, 9,10, 11

    Tutorial participation 5% (redeemable in final exam):

    Your attendance in the tutorials is compulsory and will be recorded by your tutor. Based on your attendance and active participation in the tutorial you will be awarded up to 5% of your total grade. Active tutorial participation consists of preparing the answers to the tutorial questions, contributing to class discussion and answering questions posed by your tutor.

    Mid-semester test 10% (redeemable in final exam):

    The test will be administered online during week 7. The test will consist of multiple choice questions. The material for the test will be based on the first 6 topics of the course.

    Date: Online in week 7

    Optional Group Assignment 15% (optional and redeemable in final exam):

    The format of the group assignment should be a report. A group needs to consist of three to four members. You can do the assignment individually if you wish, however you will be marked the same as if you completed it in a group.

    Full details of this assignment will be provided on MyUni. Late submission of the Group Assignment will be penalised with 10 percent per day.

    Date: 31st May, 4pm (Assignment Box, Undergraduate Hub)

    Final Examination 50% (or more):

    There will be a two hour final examination for this course which will be held during the examination period. You will be advised of the date, time and venue in due course.

    A mock exam will be published on MyUni.

    Due Date: available on Access Adelaide after the course commences.

    Submission

    Tutorial assignments must be submitted at the beginning of the tutorials in weeks 2, 3, 4, 5, 6, 7, 8, 9, 10, 11. Late submission and electronic copies of the tutorial assignments will not be accepted.

    The group assignment has to be correctly cited and signed by all group members and should be submitted via the assignment box in the undergraduate hub, Ground Floor, Marjoribanks Wing, 10 Pulteney Street at 4pm, Friday the 23rd of May 2014.

    Late submission of the group assignment will be penalised with 10 per cent per day.

    Extensions without penalties will only be granted in exceptional circumstances and require the approval of the course coordinator.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through Access Adelaide.

  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student’s disciplinary procedures.

The University of Adelaide is committed to regular reviews of the courses and programs it offers to students. The University of Adelaide therefore reserves the right to discontinue or vary programs and courses without notice. Please read the important information contained in the disclaimer.