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ECON 1009 - International Financial Institutions and Markets I

North Terrace Campus - Semester 2 - 2024

This course provides an introduction to the institutions, markets and securities that form the basis of modern financial and monetary systems. Australian as well as international economies and their financial systems will be considered with reference to current financial news and current affairs. This course also introduces some of the main concepts and methods used in financial and monetary economics and provides a sound basis for students progressing to the study of monetary economics, financial economics and international finance at higher levels within the University. At the same time, it is a valuable, self contained and up-to-date overview of international financial markets and institutions for non-specialists.

  • General Course Information
    Course Details
    Course Code ECON 1009
    Course International Financial Institutions and Markets I
    Coordinating Unit Economics
    Term Semester 2
    Level Undergraduate
    Location/s North Terrace Campus
    Units 3
    Contact Up to 3 hours per week
    Available for Study Abroad and Exchange Y
    Quota A quota may apply
    Assessment Typically, participation, online quizzes and assignments, and a final exam
    Course Staff

    Course Coordinator: Dr Raul Barreto

    email:  raul.barreto@adelaide.edu.au  
    Phone 08 8313 3240

    Office hours: Wednesdays, 11am - 12pm 
    Office location:  Room 426 , Nexus 10 Tower , North Terrace (or via Zoom).
    Course Timetable

    The full timetable of all activities for this course can be accessed from .

    There will be a total of two hours of on-line lecture content each week, and a one hour tutorial (students may enrol in face-to-face or on-line tutorials, subject to spaces being available).
    The lecture content will be used to explain the concepts, theories and models relevant to financial institutions and financial markets, whilst the tutorial time will be used to apply the acquired knowledge to practice questions. The tutorial questions will consist of a mix of real world and theoretical, quantitative and analytical, questions which will be posted on MyUni prior to the tutorials.

    Students are expected to study the course materials carefully and to engage and actively participate in tutorial discussions. All work discussed in both the lectures and the tutorials and any submitted material will form the basis for the final examination.

  • Learning Outcomes
    Course Learning Outcomes

    On successful completion of this course, students will be able to:

    1. Identify and explain the main functions of the principal financial markets and institutions in a typical modern financial system.
    2. Apply balance sheet principles to describe and analyse the business of banking, the financial relationships which exist between different financial institutions, and those between the financial system and the rest of the economy.
    3. Identify the objectives of monetary policy, and to describe both orthodox and unconventional approaches used around the world to monetary policy implementation. Describe the three markets- the money market, the bond market and the equities market- with respect to their respective time and risk profiles. Understand the functional differences between the money market, the futures market, the bond market, the equities market, the derivatives market and the foreign exchange market.
    4. Be able to discuss the relationship amongst macroeconomic aggregates and the various markets. Describe the functional relationship between financial markets and changes in social welfare. Understand the nature of signals and messaging within financial markets.
    University Graduate Attributes

    This course will provide students with an opportunity to develop the Graduate Attribute(s) specified below:

    University Graduate Attribute Course Learning Outcome(s)

    Attribute 1: Deep discipline knowledge and intellectual breadth

    Graduates have comprehensive knowledge and understanding of their subject area, the ability to engage with different traditions of thought, and the ability to apply their knowledge in practice including in multi-disciplinary or multi-professional contexts.

    1-4

    Attribute 2: Creative and critical thinking, and problem solving

    Graduates are effective problems-solvers, able to apply critical, creative and evidence-based thinking to conceive innovative responses to future challenges.

    3,4

    Attribute 3: Teamwork and communication skills

    Graduates convey ideas and information effectively to a range of audiences for a variety of purposes and contribute in a positive and collaborative manner to achieving common goals.

    1-4

    Attribute 4: Professionalism and leadership readiness

    Graduates engage in professional behaviour and have the potential to be entrepreneurial and take leadership roles in their chosen occupations or careers and communities.

    1-4

    Attribute 5: Intercultural and ethical competency

    Graduates are responsible and effective global citizens whose personal values and practices are consistent with their roles as responsible members of society.

    3

    Attribute 6: Australian Aboriginal and Torres Strait Islander cultural competency

    Graduates have an understanding of, and respect for, Australian Aboriginal and Torres Strait Islander values, culture and knowledge.

    3

    Attribute 7: Digital capabilities

    Graduates are well prepared for living, learning and working in a digital society.

    1-3

    Attribute 8: Self-awareness and emotional intelligence

    Graduates are self-aware and reflective; they are flexible and resilient and have the capacity to accept and give constructive feedback; they act with integrity and take responsibility for their actions.

    1-4
  • Learning Resources
    Recommended Resources
    Other resources will be supplied on the Canvas course web-site.

    Online Learning

    All of the material related to the course, e.g. supportive readings, tutorial questions, lecture slides, supplementary materials, mock examinations, and the full details of each assessment task will be available on MyUni.

    To encourage collaborative learning, the course will also make use of discussion groups and a chat function on the MyUni webpage.

    These forums will be monitored regularly and managed by the course co-ordinator.

    The purpose of the forums is to encourage student’s collaborative learning and provide all students with equal access to information related to the course.

    Course Website:

  • Learning & Teaching Activities
    Learning & Teaching Modes
    The course is based on a mix of on-line lecture material, tutorials, other on-line resources, summative multiple-choice question progress tests, a formative and summative end-of-course essay, and a final examination.
    Workload

    The information below is provided as a guide to assist students in engaging appropriately with the course requirements.

    The University expects full-time students (i.e. those taking 12 units per semester) to devote a total of 48 hours per week to their studies. Students in this course are expected to attend all lectures throughout the semester plus one tutorial class each week.

    It is expected that students will devote 12 hours learning activities per week for this course if they expect to receive a pass mark.
    Learning Activities Summary
    Classes will be held weekly commencing as per study schedule below. Note that tutorials commence in Week 2.

    Membership of tutorial classes is to be finalised by the end of the third week of semester. Students wishing to swap between tutorial classes after this time are required to present their case to the lecturer-in-charge, but should be aware that such a request may not be approved.

    Tutorials are an important component of your learning in this course. The communication skills developed in tutorials by regularly and actively participating in discussions are considered to be most important by the School and are highly regarded by employers and professional bodies.


    Consultation and Communication

    Check your student email and MyUni as course-related announcements are communicated via email.
    Consultation times and locations are available also on MyUni.

    NOTE the following time scheduled is not completely fixed and some deviations from the schedule might occur. This is ONLY the proposed time schedule. You will be informed of any deviations from this proposed schedule by attending the lectures and checking any relevant information and announcements on MyUni.

    Classes will be held weekly commencing as per study schedule below. Note that tutorials commence in Week 2.
    Membership of tutorial classes is to be finalised by the end of the third week of semester. Students wishing to swap between tutorial classes after this time are required to present their case to the lecturer-in-charge, but should be aware that such a request may not be approved.

    Tutorials are an important component of your learning in this course. The communication skills developed in tutorials by regularly and actively participating in discussions are considered to be most important by the School and are highly regarded by employers and professional bodies.

    Week Lecture Topic Tutorial Topic
    1 Introduction to Financial Institutions and Markets No Tutorial
    2 Introduction to Central Banking Introduction to Financial Institutions and Markets
    3 Introduction to Monetary Policy and Interest Rates Introduction to Central Banking
    4 Governments and Central Banks Introduction to Monetary Policy and Interest Rates
    5 Commercial Banking and Leverage Governments and Central Banks
    6 Money Creation and Banking Regulation Commercial Banking and Leverage
    7 The Economy, Inflation and the Financial System Money Creation and Banking Regulation
    8 Financial Crises and Macroeconomics The Economy, Inflation and the Financial System
    Mid Semester Break Mid Semester Break
    9 Financial Instruments, Securities and Monetary Systems Financial Crises and Macroeconomics
    10 Equity and Currency Markets Financial Instruments, Securities and Monetary Systems
    11 Futures and Options Markets Equity and Currency Markets
    12 Overview Futures and Options Markets
    Specific Course Requirements
    To gain a pass mark in this course, at least 50 per cent must be obtained overall
  • Assessment

    The University's policy on Assessment for Coursework Programs is based on the following four principles:

    1. Assessment must encourage and reinforce learning.
    2. Assessment must enable robust and fair judgements about student performance.
    3. Assessment practices must be fair and equitable to students and give them the opportunity to demonstrate what they have learned.
    4. Assessment must maintain academic standards.

    Assessment Summary

    Assessment Task Task Type Due Weighting Learning Outcome
    Active Participation in Tutorials Individual n/a 10% 1-5
    Six multiple-choice quizzes, each consisting of 10 multiple-choice questions. Individual End of Week 2/4/6/8/10/12 30% 1-5
    End of course examination, including 20 multiple-choice questions and two written answers. Individual n/a 40% 1-5
    End of Course 2,000 word essay Individual End of Week 11 20% 1-5
    Total 100%

    Please note that there is a Hurdle Requirement on this course, to ensure that those who pass the course have demonstrated competence in meeting the specified Course Learning Outcomes.

    In order to secure a Pass grade overall, it is necessary to achieve a mark of at least 35% in the final examination, as well as a mark of at least 50% overall.

    Should a student's overall marks sum to more than 50%, while they have secured a mark of below 35% in the final examination, they will be awarded a final mark of 49%.

    As an example, a student whose weighted average mark across the coursework and the exam came to 52%, but who
    only secured a mark of 30% in the final examination, would be awarded an overall score of 49%, as the student would not have met the hurdle requirement.

    This will be discussed at the beginning of the course, in the first lecture.
    Assessment Related Requirements
    • To gain a pass mark in this course, at least 50 per cent must be obtained overall, and a mark of at least 35 per cent must be otanined in the final examination, as specified in the hurdle requirement above.
    Assessment Detail

    Active Tutorial Participation. 10% weight.

    Students will be expected to not only attend tutorials, but to participate actively in tutorials on a weekly basis. Tutors will award a mark out of 10, based on active participation across the course. Further details regarding this assessment item will be published during the first week of the course.


    Six On-Line Multiple-Choice Quizzes. 6 x 5% = 30% weight.

    The tests will be administered online at the end of weeks 2, 4, 6, 8, 10 and 12. The tests will each consist of 10 multiple-choice questions. Further details regarding this assessment item will be published during the first week of the course.


    Final Examination. 40% weight.

    There will be a two-hour on-line final examination for this course which will be held during the examination period.

    Please note the hurdle requirement relating to the final examination, which is that a student must secure at least 35 per cent of the available marks on the final examination in order to pass the course overall.

    Further information will be published on MyUni and discussed in the lectures.

    Due Date: available on Access Adelaide during the semester, when the Exam Timetable has been published.

    End of Course Essay. 20% weight.

    A 2,000 word essay will be due for submission at the end of week 11. The title for the essay will be published before the mid-semester break. The essay will assess learning outcome 3. Further details regarding this assessment item will be published during the first week of the course.

    Submission

    The end-of-course essay must be submitted on line by Sunday at 12 midnight at the end of week 11. Late submission will not be accepted, except when authorised by the course co-ordinator.

    Multiple-choice tests must be completed within a three day window (between Friday and Sunday) at end end of the relevant week.

    Course Grading

    Grades for your performance in this course will be awarded in accordance with the following scheme:

    M10 (Coursework Mark Scheme)
    Grade Mark Description
    FNS   Fail No Submission
    F 1-49 Fail
    P 50-64 Pass
    C 65-74 Credit
    D 75-84 Distinction
    HD 85-100 High Distinction
    CN   Continuing
    NFE   No Formal Examination
    RP   Result Pending

    Further details of the grades/results can be obtained from Examinations.

    Grade Descriptors are available which provide a general guide to the standard of work that is expected at each grade level. More information at Assessment for Coursework Programs.

    Final results for this course will be made available through .

    Additional Assessment
    If a student receives 45-49 for their final mark for the course they will automatically be granted an additional assessment. This will most likely be in the form of a new exam (Additional Assessment) and will have the same weight as the original exam unless an alternative requirement (for example a hurdle requirement) is stated in this semester’s Course Outline. If, after replacing the original exam mark with the new exam mark, it is calculated that the student has passed the course, they will receive 50 Pass as their final result for the course (no higher) but if the calculation totals less than 50, their grade will be Fail and the higher of the original mark or the mark following the Additional Assessment will be recorded as the final result.
  • Student Feedback

    The University places a high priority on approaches to learning and teaching that enhance the student experience. Feedback is sought from students in a variety of ways including on-going engagement with staff, the use of online discussion boards and the use of Student Experience of Learning and Teaching (SELT) surveys as well as GOS surveys and Program reviews.

    SELTs are an important source of information to inform individual teaching practice, decisions about teaching duties, and course and program curriculum design. They enable the University to assess how effectively its learning environments and teaching practices facilitate student engagement and learning outcomes. Under the current SELT Policy (http://www.adelaide.edu.au/policies/101/) course SELTs are mandated and must be conducted at the conclusion of each term/semester/trimester for every course offering. Feedback on issues raised through course SELT surveys is made available to enrolled students through various resources (e.g. MyUni). In addition aggregated course SELT data is available.

  • Student Support
  • Policies & Guidelines
  • Fraud Awareness

    Students are reminded that in order to maintain the academic integrity of all programs and courses, the university has a zero-tolerance approach to students offering money or significant value goods or services to any staff member who is involved in their teaching or assessment. Students offering lecturers or tutors or professional staff anything more than a small token of appreciation is totally unacceptable, in any circumstances. Staff members are obliged to report all such incidents to their supervisor/manager, who will refer them for action under the university's student鈥檚 disciplinary procedures.

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