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ECON350 – Money and Finance

2017 – S1 Evening

General Information

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Unit convenor and teaching staff Unit convenor and teaching staff Unit Convenor
Ha Vu
Contact via ha.vu@mq.edu.au
E4A 429
Tuesday 12 - 1pm; Thursday 5 - 6pm
Credit points Credit points
3
Prerequisites Prerequisites
6cp at 200 level including (ECON200 or ECON201 or ECON203 or ECON204)
Corequisites Corequisites
Co-badged status Co-badged status
Unit description Unit description
This unit provides a review and analysis of the role and characteristics of financial markets, institutions, and the instruments they trade. The workings of the Australian financial system are explored, but the unit is also very global in focus. Money and finance are examined both in terms of theoretical foundations and in practical application, and there is a strong preference for the use of history as a vehicle for providing perspective and insight. Topics include: the meaning and nature of money; techniques of selling and pricing securities; rational expectations; efficient markets; the innovations of behavioural finance; arbitrage and speculation; and in-depth analyses of the functions and features of money markets, bond markets, equity markets and the actions and presumptions of monetary authorities. The central theme of the unit is that innovation in money and finance has been as important as innovation anywhere else in shaping the modern world.

Important Academic Dates

Information about important academic dates including deadlines for withdrawing from units are available at http://students.mq.edu.au/student_admin/enrolmentguide/academicdates/

Learning Outcomes

  1. Be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection.
  2. Demonstrate a capacity to work independently including the ability to plan and achieve goals.
  3. Identify, define and analyse problems and recommend creative solutions within real-world constraints.
  4. Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
  5. Be intellectually ready to participate in public policy discussions arising in social, business and policy environments.

Assessment Tasks

Name Weighting Due
Online Quizzes 5% Weeks 4 and 12
Class Test 25% Week 7
Assignment 20% 4pm Wednesday 10 May (Week 9)
Final Examination 50% University Examination Period

Online Quizzes

Due: Weeks 4 and 12
Weighting: 5%

There will be 2 online quizzes in this course, and each containing 20 true/false and multiple choice questions. Each quiz is worth 2.5%. Each student will most likely face a slightly different set of questions. The quizzes will be accessed online through the unit web page at http://ilearn.mq.edu.au. The opening and closing dates for each quiz are as follows:

Quiz 1: Open: 9am Saturday 25 March;  and Close: 11pm Monday 17 March.

Quiz 2: Open: 9am Saturday 03 June;  and Close: 11pm Monday 05 June.

Please note that no extensions will be granted. Failure to complete any quiz will result in a zero mark for that quiz. The penalty does not apply for cases in which an application for Disruption to Studies is made and approved. In this case, students will have to complete an alternative assessment.

Students must be aware that IT failures may occur, and that with large numbers of students, congestion can at times limit access. It is the student’s responsibility to plan for these possibilities, and completion of the quiz soon after released is strongly advised.

Read the "Instruction for Online Quizzes" carefully before attempting.


This Assessment Task relates to the following Learning Outcomes:
  • Demonstrate a capacity to work independently including the ability to plan and achieve goals.
  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.

Class Test

Due: Week 7
Weighting: 25%

In week 7 there will be a written Class Test for all students in Econ350.

The test will take place in lectures (the first hour) and, as such, you are required to attend the Test according to the lecture stream in which you are enrolled. The tests for both streams (ie, day and evening) cover the same material, but the questions are completely different. There will be no advantages to anyone having access to the questions asked in the other stream, or even from discussing these with other students (as you will see).

Normal examination conditions will apply of course, and you must bring with you your official University ID card.

The test will be of 60 minutes, and a combination of true/false with explanation, and short-answer questions.

Failure to attend the class test without the submission of an application for Disruption to Studies on the grounds of illness or unavoidable mishap together with the required supporting documentation (see the Policies and Proceduressection for details) will result in a mark of zero for the assessment.

If the application for Disruption to Studies is accepted, the student will have to take a supplementary test which could be an oral test.


This Assessment Task relates to the following Learning Outcomes:
  • Identify, define and analyse problems and recommend creative solutions within real-world constraints.
  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.

Assignment

Due: 4pm Wednesday 10 May (Week 9)
Weighting: 20%

The assignment will contain a number of discussion/explanation questions based on the provided articles. The assignment questions and related reading articles will be released on iLearn during the session break.

Submission

The Assignment must be submitted in the relevant box in BESS by 4pm on Wednesday, 10 May.     .

Before the due date and time the assignment must also be submitted through 'Turnitin'. Assignments not submitted through this programme will receive zero marks.

Extension

Genuine and documented cases of illness and misadventure may allow for an extension of the due date upon the submission of an application for Disruption to studies, but no other circumstances will allow for this (that means students who have not submitted the assignment by the deadline will be awarded a mark of zero for the task).

Penalties

Severe penalties will apply for cases of plagiarism, up to and including exclusion from the unit. 

Penalties will also apply for late submission of the Assignment. Such penalties will include the loss of 10% of the marks for any assignment submitted after 4pm on Wednesday, 10 May, and then 10% further for each day beyond the submission date after that.


This Assessment Task relates to the following Learning Outcomes:
  • Be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection.
  • Demonstrate a capacity to work independently including the ability to plan and achieve goals.
  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
  • Be intellectually ready to participate in public policy discussions arising in social, business and policy environments.

Final Examination

Due: University Examination Period
Weighting: 50%

The final examination will consist of true/false, short-answer, and essay-type questions. Further details relating to the number of questions and so on will be given closer to the Exam.  

This two hour final exam will be held during the University Examination period.

You are expected to present yourself for examination at the time and place designated in the University Examination Timetable. The timetable will be available in Draft form approximately eight weeks before the commencement of the examinations and in Final form approximately four weeks before the commencement of the examinations: http://www.exams.mq.edu.au/

The only exception to not sitting an examination at the designated time is because of documented illness or unavoidable disruption. In these circumstances you may consider applying for Disruption to Studies (See the Policies and Procedure section for details). If a Supplementary Examination is granted as a result of the Disruption to Studies process, the examination will be scheduled after the conclusion of the official examination period. Also, although the material coverage for the Supplementary exam would be the same as the final exam, it will include only essay-type questions.

You are advised that it is Macquarie University policy not to set early examinations for individuals or groups of students. All students are expected to ensure that they are available until the end of the teaching semester, the final day of the official examination period.

In the unlikely event of documented illness or misadventure a supplementary exam may be awarded. Such an exam would consist of essay-type questions only.


This Assessment Task relates to the following Learning Outcomes:
  • Be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection.
  • Identify, define and analyse problems and recommend creative solutions within real-world constraints.
  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.

Delivery and Resources

Classes 

Students attend three classroom hours per week (in one block), comprising lectures using a mix of theory and practical applications, delivered in First Semester, and in both day and evening sessions.

Of course, you only have to attend one of these sessions! Timing and location of the Econ350 Lecture Programme can be found at:

https://timetables.mq.edu.au/2017/

Students are expected to attend the full quota of lectures as all the material covered in class is examinable.

The lectures of Econ350 will be recorded on the University’s i-Lecture facility. This can be found at: http://ilearn.mq.edu.au

Required and Recommended Texts and/or Materials

There is no set textbook for Econ350. Here are some useful books for this course (as they are for the ‘sister unit’, Econ 335, The Economics of Financial Institutions)

Kidwell, D. et al. 2014, Financial Markets, Institutions and Money (3rd edn), Australian Edition, John Wiley & Sons Australia.

Niall Ferguson. 2008, ‘The Ascent of Money’, published Allen Lane (Penguin), London. This book provides an overview of the history of money and finance – indeed, its subtitle is ‘A Financial History of the World’. What makes this different to most books recommended for courses such as this is that it is also great fun to read – full of drama, violence, scandal, passion, crime, and so on – in short, all the things that really drive money and finance. It takes its story all the way up to mid-2008. A television series on the book was also made in 2008, and broadcast on the ABC (and it is available on YouTube at https://www.youtube.com/watch?v=fsrtB5lp60s). Also, there is an interview with Ferguson about the book on the web. This interview (‘Afterwords: Niall Ferguson author of ‘The Ascent of Money: A Financial History of the World” interviewed by Adrian Woolridge, Washington bureau chief for The Economist’) appeared on the US public broadcaster ‘C-SPAN’ (on November 17, 2008). To find it, simply go to the C-Span website (www.c-span.org) and type in the title above (or, of course, use Google).

Technology Used and Required

iLearn; i-Lecture

Learning and Teaching Activities

As noted above, this unit is taught via three hours of lectures per week. In terms of student activity in relation to this, it is suggested that lecture slides and/or any readings be read in advance. Meanwhile, keeping up to speed on events impacting financial institutions and markets will be highly advantageous.

Unit Schedule

Lecture Topics

Topic 1: Introduction

Kidwell, Ch.1; Ferguson, introduction.

Topic 2: The Evolution of Money in Theory and Practice 

Ferguson, passim;

Davies, Glyn, 1994 & 2002, A History of Money, University of Wales; Press, Cardiff. There are significant web resources for this book. These can be found at:http://projects.exeter.ac.uk/RDavies/arian/llyfr.html

Topic 3: Interest Rates: Their Theory and Structure

Kidwell, Ch.4, Ch. 7;

Topic 4: Central Banking and Monetary Policy

Kidwell, Ch.2, Ch.3

RBA Website, www.rba.gov.au

Topic 5: Money Markets

Kidwell, Ch.8

Topic 6: Bond Markets

Kidwell, Ch.6, Ch.9;

Ferguson, Ch.2;

Topic 7: Equity Markets

Kidwell, Ch.10;

Ferguson, Ch.3;

Topic 8: Derivatives and Options Markets

Kidwell, Ch.11

Ferguson, Ch.5

See also C-Span video on  the Futures by Emily Lambert::

https://www.c-span.org/video/?297717-1/futures

Topic 9: Behavioural Finance

Ferguson, Ch.3, Ch.6

And:http://www.behaviouralfinance.net/

Topic 10: Crypto Currencies

Policies and Procedures

Macquarie University policies and procedures are accessible from Policy Central. Students should be aware of the following policies in particular with regard to Learning and Teaching:

Academic Honesty Policy http://mq.edu.au/policy/docs/academic_honesty/policy.html

Assessment Policy http://mq.edu.au/policy/docs/assessment/policy_2016.html

Grade Appeal Policy http://mq.edu.au/policy/docs/gradeappeal/policy.html

Complaint Management Procedure for Students and Members of the Public http://www.mq.edu.au/policy/docs/complaint_management/procedure.html​

Disruption to Studies Policy http://www.mq.edu.au/policy/docs/disruption_studies/policy.html The Disruption to Studies Policy is effective from March 3 2014 and replaces the Special Consideration Policy.

In addition, a number of other policies can be found in the Learning and Teaching Category of Policy Central.

Student Code of Conduct

Macquarie University students have a responsibility to be familiar with the Student Code of Conduct: https://students.mq.edu.au/support/student_conduct/

Results

Results shown in iLearn, or released directly by your Unit Convenor, are not confirmed as they are subject to final approval by the University. Once approved, final results will be sent to your student email address and will be made available in eStudent. For more information visit ask.mq.edu.au.

Student Support

Macquarie University provides a range of support services for students. For details, visit http://students.mq.edu.au/support/

Learning Skills

Learning Skills (mq.edu.au/learningskills) provides academic writing resources and study strategies to improve your marks and take control of your study.

Student Enquiry Service

For all student enquiries, visit Student Connect at ask.mq.edu.au

Equity Support

Students with a disability are encouraged to contact the Disability Service who can provide appropriate help with any issues that arise during their studies.

IT Help

For help with University computer systems and technology, visit http://www.mq.edu.au/about_us/offices_and_units/information_technology/help/

When using the University's IT, you must adhere to the Acceptable Use of IT Resources Policy. The policy applies to all who connect to the MQ network including students.

Graduate Capabilities

Discipline Specific Knowledge and Skills

Our graduates will take with them the intellectual development, depth and breadth of knowledge, scholarly understanding, and specific subject content in their chosen fields to make them competent and confident in their subject or profession. They will be able to demonstrate, where relevant, professional technical competence and meet professional standards. They will be able to articulate the structure of knowledge of their discipline, be able to adapt discipline-specific knowledge to novel situations, and be able to contribute from their discipline to inter-disciplinary solutions to problems.

This graduate capability is supported by:

Learning outcomes

  • Be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection.
  • Demonstrate a capacity to work independently including the ability to plan and achieve goals.
  • Identify, define and analyse problems and recommend creative solutions within real-world constraints.
  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
  • Be intellectually ready to participate in public policy discussions arising in social, business and policy environments.

Assessment tasks

  • Online Quizzes
  • Class Test
  • Assignment
  • Final Examination

Critical, Analytical and Integrative Thinking

We want our graduates to be capable of reasoning, questioning and analysing, and to integrate and synthesise learning and knowledge from a range of sources and environments; to be able to critique constraints, assumptions and limitations; to be able to think independently and systemically in relation to scholarly activity, in the workplace, and in the world. We want them to have a level of scientific and information technology literacy.

This graduate capability is supported by:

Learning outcomes

  • Be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection.
  • Demonstrate a capacity to work independently including the ability to plan and achieve goals.
  • Identify, define and analyse problems and recommend creative solutions within real-world constraints.
  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
  • Be intellectually ready to participate in public policy discussions arising in social, business and policy environments.

Assessment tasks

  • Online Quizzes
  • Class Test
  • Assignment
  • Final Examination

Problem Solving and Research Capability

Our graduates should be capable of researching; of analysing, and interpreting and assessing data and information in various forms; of drawing connections across fields of knowledge; and they should be able to relate their knowledge to complex situations at work or in the world, in order to diagnose and solve problems. We want them to have the confidence to take the initiative in doing so, within an awareness of their own limitations.

This graduate capability is supported by:

Learning outcomes

  • Be open to new (and old!) ways of thinking and appreciate the importance of intellectual curiosity and reflection.
  • Demonstrate a capacity to work independently including the ability to plan and achieve goals.
  • Identify, define and analyse problems and recommend creative solutions within real-world constraints.
  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
  • Be intellectually ready to participate in public policy discussions arising in social, business and policy environments.

Assessment tasks

  • Assignment
  • Final Examination

Effective Communication

We want to develop in our students the ability to communicate and convey their views in forms effective with different audiences. We want our graduates to take with them the capability to read, listen, question, gather and evaluate information resources in a variety of formats, assess, write clearly, speak effectively, and to use visual communication and communication technologies as appropriate.

This graduate capability is supported by:

Learning outcomes

  • Evaluate underlying theories, concepts,assumptions, limitations and arguments in disciplinary and cross-disciplinary fields of study.
  • Be intellectually ready to participate in public policy discussions arising in social, business and policy environments.

Assessment tasks

  • Class Test
  • Assignment
  • Final Examination

Research and Practice

This unit makes extensive use of Macquarie University researchers, as can be seen from the reading guide, lecture slides, and elsewhere.