|Semester 3, 2022 Online|
|Faculty or Section :||Faculty of Business, Education, Law and Arts|
|School or Department :||School of Business|
|Student contribution band :||Band 4|
|Grading basis :||Graded|
|Version produced :||27 June 2022|
The structure and operation of financial systems are pivotal in shaping the design and conduct of business and influencing the performance of the real economy. It is essential for students seeking to work in business 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, the operation and performance of the domestic financial system, and the ethical conduct of financial services providers.
This course examines the structure and operation of the Australian financial system using principles of financial and monetary economics. Students are introduced to a selection of financial markets, products and institutions of which operations largely determine key financial variables affecting decisions to allocate funds in the real economy.
Course learning outcomes
On successful completion of this course, students should be able to:
- generate a working knowledge of the current issues in domestic and international financial markets and discuss the importance of ethical conduct in the financial services industry;
- apply a working knowledge of the payment system, deposit-taking and the operation of domestic debt and equity markets to make decisions in a financial services context;
- synthesise the operation of Australia's foreign exchange market and its relationship with off-shore capital markets in the global financial system;
- evaluate the use of financial products, including the use of forward rate agreements and futures contracts, to manage interest rate risk;
- judge techniques to price various financial products, including futures, options and swaps.
|1.||Introduction to markets and finance professional ethics||10.00|
|2.||The payment system and deposit-taking institutions||10.00|
|3.||Money and debt markets||15.00|
|4.||Equity capital and the share market||15.00|
|5.||Foreign exchange and offshore capital markets||10.00|
|6.||Interest rate risk management||10.00|
|8.||Interest rate swaps||10.00|
|9.||Exchange traded options||10.00|