Money and Banking FMGT 4570

Course offerings

Learning Outcomes

Upon successful completion, the student will be able to:

• Justify why financial intermediaries exist, and assess the role of transaction costs and informational asymmetry in financial systems.
• Outline why the relative importance of financial intermediaries and financial markets is different around the world, and how bank-based systems differ from market-based systems.
• Analyse how risks affects the return of a risky asset, and hence how risk affects the value of the asset in equilibrium under the fundamental asset pricing paradigms.
• Assess whether stock prices reflect all available information, and evaluate the empirical evidence on informational efficiency in financial markets.
• Evaluate the main types of risks faced by banks, and use the main techniques employed by banks to manage their risks.
• Categorize the key reasons for and against the regulation of banking systems, and evaluate why banks need regulation.
• Compare the differences between fixed and flexible exchange rates and the consequences on the workings of monetary policy.
• Evaluate the effects of monetary policy in different exchange rate regimes.
• Assess the main channels of the monetary transmission mechanism, through which monetary policy have real effects on the economy.

Effective as of Winter 2012

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