FIN1103 Financial Markets
|Semester 2, 2012 On-campus Springfield|
|Faculty or Section :||Faculty of Business and Law|
|School or Department :||School of Accounting, Economics and Finance|
|Version produced :||30 December 2013|
Examiner: Taiji Watanabe
Moderator: Peter Phillips
Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at http://www.usq.edu.au/current-students/support/computing/hardware.
The structure and operation of financial systems are of increasing importance for the design and conduct of business in all sectors of the economy and for the general performance of the real economy. Students seeking to work in business need to understand the nature and operation of financial institutions and markets and to be conversant with the changing range of financial products and their application. Further, they need to appreciate the significance of the global financial system and the operation and performance of the domestic financial system.
This course examines the structure, operation and performance of the Australian financial system using principles of financial and monetary economics. Students are introduced to a selection of financial markets, products and institutions the operations of which largely determine key financial variables that affect decisions to save and invest in the real economy.
On successful completion of this course, students should be able to:
demonstrate an awareness of current issues in domestic and international financial
- demonstrate a working knowledge of the payment system and deposit-taking institutions in Australia
- demonstrate an understanding of the operation of domestic debt and equity markets
- demonstrate an understanding of the operation of Australia's foreign exchange market, including its relationship with off-shore capital markets and the global financial system
- demonstrate a working knowledge of interest rate risk management, including the use of forward rate agreements
- demonstrate a working knowledge of various financial products, including futures, options and swaps.
|1.||Introduction to markets||9.00|
|2.||The payment system and deposit-taking institutions||9.00|
|4.||Equity capital and the share market||13.00|
|5.||Foreign exchange and offshore capital markets||13.00|
|6.||Interest rate risk management||10.00|
|8.||Interest rate swaps||10.00|
|9.||Exchange traded options||10.00|
Text and materials required to be purchased or accessed
ALL textbooks and materials available to be purchased can be sourced from USQ's Online Bookshop (unless otherwise stated). (https://bookshop.usq.edu.au/bookweb/subject.cgi?year=2012&sem=02&subject1=FIN1103)
Please contact us for alternative purchase options from USQ Bookshop. (https://bookshop.usq.edu.au/contact/)
Hunt, B & Terry, C 2011, Financial institutions and markets, 6th edn, Cengage Learning, South Melbourne, Victoria.
Mishkin, FS & Eakins, SG 2012, Financial markets and institutions, 7th edn, Prentice Hall, Boston, Massachusetts.
Valentine, T, Ford, G, Sundmacher, M & Edwards, V 2005, Financial markets and institutions in Australia, 2nd edn, Pearson Education, Sydney, New South Wales.
Viney, C 2009, McGrath's financial institutions, instruments and markets, 6th edn, McGraw-Hill, North Ryde, New South Wales.
WEBSITES: The following websites may contain relevant background information for this course: Reserve Bank of Australia, Australian Prudential Regulation Authority, Australian Securities and Investment Commission, Australian Stock Exchange, Bank of International Settlement. You can access the current web address for these institutions using an internet search engine and the name of the institution. You will also find your local financial press (i.e. newspapers and periodicals) useful for understanding the current context in financial markets. You may also like to watch financial reports on the television or on the Internet to help you apply the material you learn in this course to current market conditions.
Student workload requirements
|Description||Marks out of||Wtg (%)||Due Date||Notes|
|ONLINE QUIZ||10||1||06 Aug 2012|
|ASSIGNMENT||35||34||16 Sep 2012|
|2-HOUR EXAMINATION||65||65||End S2||(see note 1)|
- The examination is scheduled to be held in the end-of-semester examination period. Students will be advised of the official examination date after the timetable has been finalised.
Important assessment information
It is the students' responsibility to attend and participate appropriately in all activities (such as lectures, tutorials, laboratories and practical work) scheduled for them, and to study all material provided to them or required to be accessed by them to maximise their chance of meeting the objectives of the course and to be informed of course-related activities and administration.
Requirements for students to complete each assessment item satisfactorily:
To satisfactorily complete an individual assessment item a student must achieve at least 50% of the marks. (Depending upon the requirements in Statement 4 below, students may not have to satisfactorily complete each assessment item to receive a passing grade in this course.)
Penalties for late submission of required work:
If students submit assignments after the due date without prior approval of the examiner, then a penalty of 5% of the total marks gained by the student for the assignment may apply for each working day late up to ten working days at which time a mark of zero may be recorded.
Requirements for student to be awarded a passing grade in the course:
To be assured of receiving a passing grade a student must achieve at least 50% of the total weighted marks available for the course.
Method used to combine assessment results to attain final grade:
The final grades for students will be assigned on the basis of the aggregate of the weighted marks obtained for each of the summative assessment items in the course.
This is a restricted examination. The only materials that candidates may use during this examination are: writing materials (non-electronic and free from material which could give the student an unfair advantage in the examination); calculators which cannot hold textual information (students must indicate on their examination paper the make and model of any calculator(s) they use during the examination).
Examination period when Deferred/Supplementary examinations will be held:
Any Deferred or Supplementary examinations for this course will be held during the next examination period.
University Student Policies:
Students should read the USQ policies: Definitions, Assessment and Student Academic Misconduct to avoid actions which might contravene University policies and practices. These policies can be found at http://policy.usq.edu.au.
Assignments: (i) The due date for an assignment is the date by which a student must despatch the assignment to the USQ. The onus is on the student to provide proof of the despatch date, if requested by the examiner. (ii) Students must retain a copy of each assignment submitted for assessment. This must be produced within 24 hours if required by the examiner. (iii) The examiner may grant an extension of the due date of an assignment in extenuating circumstances. All applications for extensions must be accompanied by supporting documentation. In all circumstances no assignments will be accepted two calendar weeks after the due date. The examiner shall consider the statement accompanying a late assignment and decide on the outcome. (iv) The examiner will not accept submission of assignments by facsimile. (v) Assignments are to be submitted online through the USQ Study Desk.
Course weightings: Course weightings of topics should not be interpreted as applying to the number of marks allocated to questions testing those topics in the final examination paper. The final examination may test material already tested in assignments.
Referencing in assignments: Harvard (AGPS) is the referencing system required in this course. Students should use Harvard (AGPS) style in their assignments to format details of the information sources they have cited in their work. The Harvard (AGPS) style to be used is defined by the USQ Library's referencing guide at http://www.usq.edu.au/library/referencing.
Computer, e-mail and Internet access: Students are required to have access to a personal computer, e-mail capabilities and Internet access to UConnect. Current details of computer requirements can be found at http://www.usq.edu.au/current-students/support/computing/hardware.