Course Outline

Institute of Management Sciences, Peshawar

 

Course Outline

Financial Markets and Institutions

Course Facilitator: Attaullah Shah

 

Course Book

Frederic S.Mishkin and Stanley G. Easkins – Financial Markets + Institutions Sixth Edition

 

Week

Topic

Lectures

1

Introductions

        Why study Financial Marksts

        Bond markets and interest rates

        Stock Market

        Structure of Financial System

        Why Study Money and monetary policy

        Money, growth, interest policy and inflation

1 lecture

1&2

Overview of Financial System

    Function of Financial Markets

    Structure of Financial Markets

    Moral Hazards and Adverse Selection

    Financial Intermediaries

    Regulation of the Financial System

   

2 lecture

3

Understanding Interest Rates

    What are interest rates

     Distinction between real and nominal interest rates

    The distinction between interest rates and returns

1 lectures

 

4

Why Do Interest Rates Change?

    Determinants of Assets Demand

    Supply and Demand in the Bond Market

    Changes in Equilibrium Interest Rates

    The Fisher Effect   

2 lecture

5

Money Market Equilibrium

    Supply and Demand for Money

    Changes in the Money Market Equilibrium

    Money supply and interest rates 

2 lectures

6

How Do Risk and Term Structure Affect Interest Rates?

    Risk Structure of Interest Rates

    Term Structure of Interest Rates

2 lectures

7

Goals and conduct of monetary policy 

   Goals of monetary policy

   Tools of monetary policy

   Transmission mechanisms of monetary policy 

2  lectures

8

The Foreign Exchange Market

   Foreign Exchange rates
   How is foreign exchange traded

   Factors that affect foreign exchange rates

   Exchange rates in short run

2 Lectures

9

Derivatives Markets

   Future markets

   Option markets

2 lectures

10

Banking Institutions

   Basics of banking

   General principles of banks management

   Measuring bank performance

2 lectures

11&12

Other Financial Institutions

   Insurance companies

   Venture Capital Companies

   Pension Funds

3 lectures

13&14

Various Financial Crises

   Asian Crisis of 1997

   The financial crisis of 2008-09

3 lectures

 

Presentations

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