Course Details

Course Information Package

Course Unit CodeABSE302
Course Unit Details
Number of ECTS credits allocated5
Learning Outcomes of the course unitBy the end of the course, the students should be able to:
  1. Identify the role of money in an economy, comprehend the different measurements of money and see how money drives inflation and economic expansion
  2. Differentiate the flow of funds between savers and borrowers and identify how financial intermediaries assist the transfer of funds from lenders to borrowers
  3. Describe present value and mechanisms of calculating interest rates, comprehend different types of bonds and loans, understand interest rate determination
  4. Measure and determine foreign exchange rates, analyse fixed and floating exchange rate mechanisms
  5. Define the classical understanding of aggregate supply, supply of saving and demand for investment that leads to the equilibrium interest rate, the quantity theory of money, nominal and real interest rate
  6. Discuss the differences among saving, investment, desired saving and desired investment and explain how these differences can generate short-run fluctuations in real GDP. Interpret the Keynesian theory of monetary policy and its role in impacting the economy
Mode of DeliveryFace-to-face
Recommended optional program componentsNONE
Course Contents

The Role of Money in the Macro Economy
Introducing Money, Money, the Economy, and Inflation

Financial Instruments, Markets, and Institutions
Flow of Funds, Financial Instruments and Markets, Financial Intermediaries: Purposes and Profile

Interest Rate Measurement and Behavior
Calculating Interest Rates, What Determines the Level of Interest Rates?

Understanding Foreign Exchange
What Determines Foreign Exchange Rates? Fixed Versus Floating Exchange Rates

The Classical Foundations
Classical Economics, Aggregate Demand and Supply: A Summary, Real Versus Nominal Rates of Interest, Modern Modifications: Monetarists and New Classicists

The Keynesian Framework
When Saving Doesn’t Equal Investment, Consumption and Simple GDP Determination, Government to the Rescue, Money and the Rate of Interest, Monetary Policy, Aggregate Demand and Supply
Recommended and/or required reading:
  • Ritter, L. Silber, W. and Udell, G. (latest edition) Principles of Money, Banking & Financial Markets, Prentice Hall
    Planned learning activities and teaching methodsLectures, discussions and presentations by students
    Assessment methods and criteria
    Mid-tem exam40%
    Final Exam60%
    Language of instructionEnglish
    Work placement(s)NO

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