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Pre-requisite / Co-requisite:
This course describes the economic and financial environment within which businesses and government organisations operate. This course aims to explain how market systems operate and the role of specialist institutions within the markets. Students will gain an understanding of how individuals actually make financial decisions (descriptive) and guidance on how to improve financial decision making (prescriptive) in themselves and others.
Upon succesful completion of this course, a student will be able to
1. Discuss the importance as well as the behaviour of the financial markets in a modern market economy.
2. Explain the determination of price on bonds and other interest bearing financial instruments.
3. Have knowledge about how a central bank implements monetary policy and the impact that then will be given on the interest rates.
4. Manage risk when prices on financial as well as nonfinancial assets are determined.
5. Exhibit skills to make company valuations.
6. Make independent decisions in the field of financial economics.
7. Possess knowledge of economic basis of financial transactions, valuation of financial instruments and risks involved in financial transactions.
8. Appreciate reports in the financial press about economic developments, the financial markets and their implications for industry and commerce.
9. Employ the techniques available to evaluate financial performance and risk.