- One Semester or equivalent
- 36 hours
On-campus unit delivery combines face-to-face and digital learning. For Online unit delivery, learning is conducted exclusively online.
Aims and objectives
This unit expands the understanding of theoretical concepts introduced in prior units on monetary policy and financial markets. Students will be taken through the development, regulation and deregulation of the Australian financial market, and how changes have corresponded to changes in economic thought. The unit provides an overview of monetary theory, debt, equity and derivative markets and the role of derivative products in risk management. The impacts of how changes in official interest rates are transmitted to activity in the real economy are also explored as are current fiscal and monetary policy.
Students who successfully complete this unit will be able to:
1 Explain the special functions of Financial institutions and how financial intermediation benefits the economy
2 Explain key balance sheet and regulatory features of the major financial services industry
3 Demonstrate the measurement of net interest risk and explain how interest rate margin can be used as a source of profitability and risk