Module FINN1061: Introduction to Financial Economics

Department: Finance

FINN1061: Introduction to Financial Economics

Prerequisites

• None

Corequisites

• None

Excluded Combination of Modules

• None

Aims

• To introduce the principles of economic theory for microeconomics and macroeconomics in a financial context.

Content

• Introduction to Financial Economics,
• Essential elements of economics: Supply, Demand, Equilibrium and Utility
• Principles of microeconomics: consumers in the marketplace; firms in the marketplace; markets in action; market structure, firm performance and competition.
• Principles of macroeconomics: economic growth; international trade; unemployment; inflation; fiscal and monetary policy; exchange rates.
• The financial markets and the economy: Economics of equity and debt markets.

Learning Outcomes

• Demonstrate an understanding of the basic principles of economics in a financial context.
• Gain knowledge and understanding of the key theories in microeconomics and macroeconomics in a financial context.
• Explain fundamental macro-economic models and interrelationships and how they are affected by change.

• Be able to apply economic frameworks to the analysis of financial decision making by firms and/or individuals and construct fundamental macro-economic models.
• Be able to use appropriate techniques for financial economic analysis, use critical thinking skills to apply knowledge from an international perspective and, apply principles learnt to real life financial situations.

• Problem Solving and Analysis - by applying the necessary analytical and quantitative skills, as well as the ability to demonstrate understanding and manipulate core concepts in financial economics.
• Numeracy - by applying core mathematical and statistical skills to answer a range of questions.
• Planning and Organisation and Time Management - by revising relevant material and preparing for the assessment.
• Computer Literacy - by accessing, and downloading teaching material from Blackboard, undertaking bibliographical searches, and information retrieval for classes and assessment.

Modes of Teaching, Learning and Assessment and how these contribute to the learning outcomes of the module

• Teaching is by lectures and seminars. While lectures will allow student to develop an understanding of the basic principles of economics in a financial context, seminars will allow them to test their understanding on practical examples.
• Learning takes place through attendance at lectures, preparation for an participation in seminars and private study. While lectures provide the theoretical foundation, seminars focus on solving practical examples and so provide a sound basis for private revision and study.
• Formative assessment is by means of weekly online tests. These tests allow students to develop and gain immediate feedback on their knowledge and skills and serve as preparation for the summative In Year Test assessment.
• Summative assessment is by means of summative In-Year Test assessment, which takes the form of multiple 30-minute online In-Year tests, which will be taken during a specified 24-hour assessment window, and a written assignment. More detailed information e.g. on the scheduling of the In-Year tests, and how missed tests due to serious adverse circumstances will be dealt with, will be provided in the module handbook. Continuous summative assessment via multiple short summative online tests support students in the development of their knowledge and skills. They provide students with feedback on their learning progress and support students' continuous engagement in learning throughout the module. The summative assignment supports the development of students' research and analytical skills and their ability to apply their knowledge and skills to real world issues.

Teaching Methods and Learning Hours

Summative Assessment

Formative Assessment:

Weekly online tests

■ Students who do not attend monitored activities shown under Teaching Methods and Learning Hours, or who fail to complete the summative or formative assessment(s) specified above, may be subject to the Academic Progress procedures defined in the University's General Regulation V, and may be required to leave the University.