Objectives On successful completion of this subject the student will demonstrate an understanding of a financial system, its operation and component parts; yield curve analysis; the term structure of interest rates and exchange rate interaction; sources and types of business finance; short, medium and long term; domestic and overseas; and associated pricing formulae; the major types of risk and the derivative products available to manage financial risk; 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; and financial prudential supervision.
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