Money and capital markets
Mr Chris Viney
6 points * Distance * Second semester
Objectives On successful completion of this unit the student will demonstrate an understanding of a financial system, its operation and component parts; demonstrate an understanding of yield curve analysis; the term structure of interest rates; and exchange rate interaction; demonstrate an understanding of sources and types of business finance; short, medium and long term; domestic and overseas; and associated pricing formulae; demonstrate an understanding of the major types of risk and the derivative products available to manage financial risk; and demonstrate an understanding of the structure, functions and role of prudential supervision in the financial markets.
Synopsis The purpose and function of financial markets; financial assets, money and money supply; financial intermediation; flow of funds; yield curves and term structure of interest rates; finance instruments and pricing; financial institutions; financial risk and derivative products; Australian capital markets; international capital markets; financial prudential supervision.
Assessment Assignment (2000 words): 30% * Final examination (3 hours): 70% * Students must pass the examination (35/70), plus gain a minimum of 50 marks overall to obtain a pass in this subject.
Prescribed texts
McGrath M Financial institutions, instruments and markets in Australia McGraw-Hill, 1993
Bruce R and others Handbook of Australian corporate finance4th edn, Butterworths, 1992