AFX1300

Money and capital markets

Mr Chris Viney

6 points
* 3 hours per week
* First, second semester (Caulfield, Peninsula)
* Second semester (Distance)

Objectives On completion of this unit students should 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 structure and operation of Australian financial institutions and markets; 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.

Assessment Assignment (2000 words): 30%
* Examination (3 hours): 70%
* Students must pass the examination (35/70) and gain a minimum of 50 marks overall to pass this subject
* The final mark that a student receives for the subject will be determined by the subject leader taking into account all aspects of assessment.

Prescribed texts

McGrath M and Viney C W Financial institutions, instruments and markets in Australia 2nd edn, McGraw-Hill, 1996