| Effective Term: | 2024/05 |
| Institute / School : | Institute of Innovation, Science & Sustainability |
| Unit Title: | Financial Markets and Institutions |
| Unit ID: | BUECO2622 |
| Credit Points: | 15.00 |
| Prerequisite(s): | (Recommend STATS1900 OR BUECO1508 but not required) (BE507 or BUECO1507 or BUECO1509) |
| Co-requisite(s): | Nil |
| Exclusion(s): | Nil |
| ASCED: | 091901 |
| Other Change: | |
| Brief description of the Unit |
This course is designed to give students an insight into the role that financial markets and institutions play in the Australian economy. It includes functions of international financial markets and institutions, evolution of the Australian financial system, the functions the Reserve Bank of Australia, cash and debt, equity, foreign exchange and derivative markets together with risk management. |
| Grade Scheme: | Graded (HD, D, C, P, MF, F, XF) |
| Work Experience Indicator: |
| No work experience |
| Placement Component: | |
| Supplementary Assessment:Yes |
| Where supplementary assessment is available a student must have failed overall in the Unit but gained a final mark of 45 per cent or above, has completed all major assessment tasks (including all sub-components where a task has multiple parts) as specified in the Unit Description and is not eligible for any other form of supplementary assessment |
| Course Level: |
| Level of Unit in Course | AQF Level(s) of Course | | 5 | 6 | 7 | 8 | 9 | 10 | | Introductory | | | | | | | | Intermediate | | |  | | | | | Advanced | | | | | | |
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| Learning Outcomes: |
| Knowledge: |
| K1. | Distinguish the economic functions of financial instruments, markets, institutions and the Reserve Bank of Australia |
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| K2. | Examine the developments and challenges facing Australian and international financial systems |
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| K3. | Recognise the types of risks in corporate financial management |
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| K4. | Identify the main characteristics of the major financial instruments issued by the private and public sectors of the economy |
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| K5. | Appraise the principles of hedging strategies |
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| Skills: |
| S1. | Analyse the different functions of financial instruments, financial markets and institutions on corporate financial management |
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| S2. | Identify and explain the financial institutions and their role in the capital markets |
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| S3. | Apply established financial mathematical concepts to determine the price of marketable financial instruments |
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| S4. | Apply hedging strategies to manage interest rate, foreign exchange and share price risk |
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| Application of knowledge and skills: |
| A1. | Evaluate and critically analyse the impact of government and central bank decisions on the Australian financial system |
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| A2. | Estimate how changing economic activity will impact the Australian financial system |
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| A3. | Use initiative and judgement when analysing media articles/programmes related to financial market economics |
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| Unit Content: |
•A modern financial system: an overview
•Money markets
•Bond ( or debt) markets
•Stock( equity ) markets
•Foreign exchange markets
•Derivative markets
•Risk management strategies. |
| Graduate Attributes: |
| | Learning Outcomes Assessed | Assessment Tasks | Assessment Type | Weighting | | 1. | K1,K2 S1,S2 A2 | Calculations and problem solving; Written paragraph type explanations. | Mid-term test | 10-20% | | 2. | K2,K3,K4, K5 S1,S2,S3,S4 A1,A2,A3 | Individual application activities to develop and enhance knowledge and skills in financial market economics | Written assignment or case study | 20-30% | | 3. | K1,K3,K4,K5 S1,S3,S4 A1,A2 | Calculations and problem solving; Written paragraph type explanations | Written Examination | 50-70% |
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