ECON3043

Course Descriptions

This course is organised to help student understand both the money and financial system and its economics effects on their lives. The students will learn from this course the five core principles of money and banking, i.e. (1) Time has value; (2) Risk requires compensation; (3) Information is the basis for decisions; (4) Markets determine prices and allocate resources; and (5) Stability improves welfare. This course also aims at providing students with a general understanding of the banking industry and the importance of an efficient banking industry to the working of a market economy. It examines the structure of the banking industry, the role of the central bank, and the basic functions of commercial banks. This course also discusses the products being offered by the banks and the methods in analysing the performance of a typical commercial bank, as well the credit analysis and credit control of bank customers. Recent developments of banking regulations and capital adequacy will be discussed, particularly the Basel II and the CAMELS rating of the U.S.

Prerequisite

ECON2003 Principles of Macroeconomics

Workload

Workload not available

Modules

Modules not available