| CODE | BKF2091 | ||||||||
| TITLE | Money and Banking | ||||||||
| UM LEVEL | 02 - Years 2, 3 in Modular Undergraduate Course | ||||||||
| MQF LEVEL | 5 | ||||||||
| ECTS CREDITS | 4 | ||||||||
| DEPARTMENT | Banking, Finance and Investments | ||||||||
| DESCRIPTION | This study-unit studies the financial system, financial markets, the role of money and its effect on the economy, financial instruments, interest rates, the role of financial intermediaries, the money supply process, as well as theoretical and practical issues in monetary policy and central banking. Study-Unit Aims: The study-unit aims at providing participants with an introductory course on money and banking. It provides a background on all the aspects related to money and money in the banking system, including the various functions of money, the concept of interest rates and why interest rates change over time, monetary policy, money supply, and transmission mechanism of monetary policy. It is structured over fourteen lectures of two hours each. By offering this credit, the Banking and Finance Department of the University of Malta is confident that its graduates will be well equipped to study other more in-depth courses related to banking The Banking and Finance Department’s study-unit on money and banking is unique. It is designed for students who would like to pursue a career in financial services. The money and banking study-unit provides detailed knowledge together with practical skills so that students are able to fulfill their responsibilities more efficiently and effectively once they embark on their profession. By drawing upon international best practice, it helps prepare students to adapt to the modern financial services practitioners’ environment. Learning Outcomes: 1. Knowledge & Understanding: By the end of the study-unit the student will be able to: 1. Explain the theories related to the behaviour of interest rates; 2. Name the various functions of money; 3. Explain the concept of term structure of interest rates and how it is used by investors; 4. List the ways that banks create money; 5. Describe how money supply impacts interest rates; 6. Identify the main ways how monetary policy decisions are transmitted to the real economy. 2. Skills: By the end of the study-unit the student will be able to: 1. Estimate the impact of a change in interest rate on money supply and economic activity; 2. Estimate the impact of money creation on economic activity; 3. Compare the various tools used in monetary policy; 4. Evaluate different interest rate decisions; 5. Distinguish the various uses of money in the economy; 6. Assess the challenges that central banks face in implementing monetary policy. Main Text/s and any supplementary readings: Main Texts: Mishkin – The Economics of Money, Banking and Financial Markets (12th edition). Supplementary Readings: Cecchetti – Money, Banking and Financial Markets (5th edition). More Advanced Texts: Blinder – Central Banking in Theory and Practice. Goodhart – Money, Information and Uncertainty (2nd edition). Journal articles and other relevant readings will also be assigned. Reading publications such as The Economist, The Financial Times, and The Wall Street Journal will equip you with a deeper and more practical understanding of many of the issues covered, and is therefore highly recommended. |
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| STUDY-UNIT TYPE | Lecture and Tutorial | ||||||||
| METHOD OF ASSESSMENT |
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| LECTURER/S | Owen Grech |
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The University makes every effort to ensure that the published Courses Plans, Programmes of Study and Study-Unit information are complete and up-to-date at the time of publication. The University reserves the right to make changes in case errors are detected after publication.
The availability of optional units may be subject to timetabling constraints. Units not attracting a sufficient number of registrations may be withdrawn without notice. It should be noted that all the information in the description above applies to study-units available during the academic year 2023/4. It may be subject to change in subsequent years. |
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