Why people save their money in banks? Why we need financial instruments? How to consider the risk and return of investments? The monetary policy of central bank will surely affect our daily lives but how?  Basic knowledges about money and finance is very important to everyone.

The course Money, Banking and Financial Markets deals mainly with the basic financial concepts and principles; it introduces the evolution of financial system and explains the current phenomena and development trends in the field of money and finance with practical examples.   Through the study of this course students are expected to acquire the abilities to analysis and solve realistic financial problems, improve their social science accomplishments and lay a necessary theoretical foundation for their future study.

Objectives:

Knowledge and understanding of

1.     The concept for financial system, including money, financial instruments, financial markets, surplus and deficit sectors and the regulators;

2.     The concept of money and its developments;

3.      The structure of interest rate. Explain the pricing models of financial instruments;

4.      The structure of financial institutions like banks. The basic acknowledge of banking and the management of banking;

5.      The money supply and the central bank. How can a central bank control the money supplywith their tools and monetary policies;

6.      The currency equilibrium and the functions of money demand.  This part combines monetary policy and central bank. In this part the money supply will be explained with central bank behaviors and macroeconomic model.

本课程不提供免费证书。

课程成绩百分制计算。

60分-79分为及格，80-100分为优良。

The Economics   of Money, Banking and Financial Markets，10th Global edition，Frederic S Mishkin, 2012, Prentice Hall.

Basic Finance, Herbert B. Mayo, 9^th edition, 2008, Tsinghua University Press.