Finance
Date: 2018-10-24 Views: 13

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