Finance
Course No.:SFH1131001   Credit(s): 3 
Course Description
This course is suitable for sophomores whose major is finance and other related fields, and it is the basic course of other subsequent major courses provided by the department of finance. The course is designed to equip students with a framework of finance. Topics covered include currency, foreign exchange rate, financial market, financial institution, currency policy and financial supervision. 
Course Learning Outcomes
The student learning outcomes are what students would be able to know and to do on the completion of this course. In details are: 
1. Understand the basic financial concepts and its relationship with macro-economy.
2. Be able to analyze financial practice issues with the course theory.
3. Develop the habit of focusing on hot topics in finance.
Relationship to Other Courses
Pre-requisites: Microeconomics, Macroeconomics
Textbook and Reading Lists
Textbook:
Jian Li. Finance. Publishing House of Higher Education, 2013.
  
Course Assessment
Item  | Title  | Due Date  | Value  | 
1  | Middle   Discussion  | Week   10  | 10%  | 
2  | Questions   in class  | Randomly   selected weeks  | 10%  | 
3  | Attendance   test in class  | Randomly   selected weeks,3 times  | 10%  | 
4  | Final   exam  | Exam   period  | 70%  | 
  
Course Schedule
  
Week  | Lecture Content  | Homework  | 
1-6  | Lecture   1 Basic components of modern financial system 1.1 Currency and currency institution 1.1.1   Currency appearance and evolution 1.1.2   Function of currency 1.1.3   Modern credit currency calculation 1.1.4   Currency institution 1.2 Foreign   exchange rate 1.2.1 Foreign   exchange and exchange rate 1.2.2   The arrangement and evolution of foreign exchange rate 1.2.3 The   effects and risk of foreign exchange rate 1.3 Credit   and credit system 1.3.1   Introduction 1.3.2 Credit   formation 1.3.3 Credit   system 1.4 Interest rate 1.4.1   Introduction 1.4.2   Time value of currency 1.4.3   The effects of interest rate 1.5 Financial instruments 1.5.1   Financial instruments and assets 1.5.2   The price of financial assets 1.5.3   The pricing of financial assets 1.5.4   The relationship between financial assets price and interest rate & foreign   exchange rate  | Financial   information survey  | 
7-10  | Lecture 2 Operation of modern financial system 2.1 Financial   market 2.1.1   Introduction  2.1.2 The   function of financial market 2.2 Financial   institute 2.2.1 Monetary   market 2.2.2 Capital   market 2.2.3   Derivative market 2.2.4 Deposit   financial institute 2.2.5   Non-deposit financial institute  2.2.6 Central   bank  | Middle discussion  | 
11-16     | Lecture 3 Financial aggregate amount and equilibrium 3.1 Currency   demand 3.1.1   Theory development of currency demand  3.1.2    Analysis of currency demand in China 3.2 Currency   supply 3.2.1   Basic currency 3.2.2   Commercial bank and deposit currency creation  3.2.3   Currency multiplier and currency supply amount  3.3 Currency   equilibrium 3.3.1   Introduction 3.3.2 Inflation 3.3.3 Deflation  | Test in class  | 
17-18  | Lecture 4 Financial regulation and supervision 4.1 Monetary   policy 4.1.1    Aims and mechanism of monetary policy 4.1.2   Operating and medium index of monetary policy 4.1.3   Instruments of monetary policy 4.1.4   Transmission mechanism of monetary policy 4.1.5   Coordination between monetary policy and fiscal policy 4.2 Financial   supervision 4.2.1   Introduction 4.2.2 Operation 4.3 Financial   development 4.3.1 Financial   development and economy development 4.3.2   Financial innovation and financial development 4.3.3   Financial structure and financial development 4.3.4 Financialization   of economy and financial globalization  | Final exam  preparation  |