EC320-Money and Banking

Module Provider: School of Politics, Economics and International Relations
Number of credits: 20 [10 ECTS credits]
Level:6
Terms in which taught: Spring term module
Pre-requisites: EC201 Intermediate Microeconomics and EC202 Intermediate Macroeconomics
Non-modular pre-requisites:
Co-requisites:
Modules excluded:
Current from: 2022/3

Module Convenor: Dr Christos Mavrodimitrakis
Email: c.mavrodimitrakis@reading.ac.uk

Type of module:

Summary module description:

This module is designed to provide you with an in-depth understanding on three parts: 1) financial markets (direct finance), 2) financial intermediaries (indirect finance), and 3) the conduct of monetary policy. In the first part, we will cover interest rate, bonds, and stocks. In the second part, we will focus on financial institutions, mainly commercial banks. In the third part, we will discuss central banks, money supply process, and monetary policy. By the end of this module students should have a clear understanding of the common financial assets, banking system and the central bank - as well as the interrelationship between these institutions and monetary policy, interest rates, and inflation.

Aims:

The primary focus of this module is on understanding financial markets, financial institutions, and the conduct of monetary policy. This includes having a basic understanding of the principle parts of a financial system, of bonds and stocks, of banks and their roles both in the financial system and with respect to monetary policy, of money supply, and of central banks and monetary policy. 

Assessable learning outcomes:

Students should be able to identify the various parts necessary for direct finance in the financial market. They should also be able to explain the uniqueness of bonds and stocks as financial assets. They should also possess an in-depth understanding of bank management, central banks and monetary policy. Finally, students should be able to take the theoretical models learned and be able to apply then to real-world phenomenon. 

Additional outcomes:

Throughout the process of completing set exercises, students will have the opportunity to develop the skills required to do relevant research, write reports, understand technical articles, and apply theoretical knowledge to real world situations.

Outline content:

Basic topics include: basics of financial system, bonds, stocks, financial institutions, bank management, central banks, money supply, and monetary policy. Additional content covered may include:  assets supply and demand, term structure of interest rate, financial regulation, financial crisis, the relationship between money, inflation, and monetary policy and quantity theory of money.

Brief description of teaching and learning methods:

Detailed guidance on the topics covered will be provided in the weekly lectures, together with occasional handouts covering the material discussed, examples, exercises and solutions to facilitate understanding of key concepts. Students may be required to do exercises corresponding to each topic, to read a significant amount of journal articles, and to undertake research using the library, internet, etc.

Contact hours:

	Autumn	Spring	Summer
Lectures		20	2
Guided independent study:		160	18
Total hours by term	0
Total hours for module	200

Summative Assessment Methods:

Method	Percentage
Written exam	60
Class test administered by School	40

Summative assessment- Examinations:
One 3-hour unseen written paper.
Part 3 examinations are held in the Summer term.

Summative assessment- Coursework and in-class tests:

An in-class test aimed primarily at ascertaining a student’s understanding and comprehension of a subset of the materials covered during lectures. 

Formative assessment methods:

Penalties for late submission:

The Support Centres will apply the following penalties for work submitted late:

• where the piece of work is submitted after the original deadline (or any formally agreed extension to the deadline): 10% of the total marks available for that piece of work will be deducted from the mark for each working day (or part thereof) following the deadline up to a total of five working days;
• where the piece of work is submitted more than five working days after the original deadline (or any formally agreed extension to the deadline): a mark of zero will be recorded.

The University policy statement on penalties for late submission can be found at: https://www.reading.ac.uk/cqsd/-/media/project/functions/cqsd/documents/cqsd-old-site-documents/penaltiesforlatesubmission.pdf
You are strongly advised to ensure that coursework is submitted by the relevant deadline. You should note that it is advisable to submit work in an unfinished state rather than to fail to submit any work.

Assessment requirements for a pass:
A minimum overall mark of 40%.

Reassessment arrangements:

Re-examination for all modules takes place in August of the same year. Re-assessment is by examination only; in-class test is not included at the second attempt..

Additional Costs (specified where applicable):

1) Required text books:  The Economics of Money, Banking, & Financial Markets: European Edition, by Frederic S. Mishkin, Kent Matthews, and Massimo Giuliodori, 2013, Pearson Publishers, ISBN: 978-0-273-73180-1, (Estimated Price: £59.84)

2) Specialist equipment or materials:  None

3) Specialist clothing, footwear or headgear:  None

4) Printing and binding:  None

5) Computers and devices with a particular specification:  None

6) Travel, accommodation and subsistence:  None

Last updated: 22 September 2022