Economics
Approved course information last updated: 2 years, 3 months ago
Pre-requisites: ECON 140
Requisite To: ECON 326
Lab Session:
This is an introductory course on the basic concepts of money, banking, financial institutions, and financial markets. The course enables students to understand the main functions of money, banking, and financial markets and their respective roles in economic activity. The course also focuses on monetary policy tools and their role in regulating the work of banks and other financial institutions. It also deals with the role of interest and exchange rates, as well as the determinants of money supply, and theories of demand for money.
- Describe the development and functions of money as well as differentiate between different measures of money.
- Distinguish between the different types of financial markets, institutions and instruments.
- Analyze the problems of asymmetric information, adverse selection and moral hazard in financial markets and ways to reduce their scale and effect.
- Describe the operational mechanism of banking institutions, their asset and liability management, their balance sheet, and their relationship with the monetary authority.
- Recognize the importance of monetary policy, the goals and targets of central banks, the use of different monetary tools, and their impacts on the money supply.
- Describe the function of foreign exchange markets as well as exchange rate policies and their impact on foreign trade and economic growth.