75813 - Economics of Financial Services

Learning outcomes

The course aims to provide the tools needed to study the characteristics, the role and the functioning of the financial system. The aim is to understand the past and recent developments of the financial system, such as the reasons of the financial market globalization, the European Monetary Union characteristics, and the reasons of the recent financial crisis. At the end of the course, the expectation is that the student will know:

1. the main theoretical tools to understand the interest rates construction and the financial assets characteristics;

2. the functions of the financial system;

3. the reasons that motivate the households and firms decisions;

4. the characteristics of financial intermediaries and institutional investors;

5. the main reasons that justify the regulation of the financial system.

Readings/Bibliography

Ferrari et al., "The Financial System: Functions, Markets and Intermediaries", last edition (vol. I - ALL)

Ferrari et al., "Financial Instruments", last edition (vol. II chapters 1-2-4-5-6-7 (only some sections section 1 - 2 solo p. 191 - 5.1)).

Other readings:

Corigliano Financial intermediation Volume1, BUP 2007 - Chapter 5 Vol. I (pp. 265-284)

Saunders et al. "Economics of Financial Intermediation", McGraw / Hill / last edition (Chapter 12 - 12.2.1 - 12.2.2 - 12.3)

Some additional examples and readings indicated by the teacher will be discussed during the class.

The slides used during the lessons are a useful tool to summarize the lectures but their study is not enough to pass the exam. Then the student will be required to integrate with what is reported on the textbook or with the articles and insights distributed during the course.

Teaching methods

Lectures, exercises and discussion in the classroom.

Assessment methods

The exam is aimed to verify the achievement of the following educational objectives:

1. Knowledge of the main theoretical concepts;

2. Ability to work through simple exercises on economic-financial-business phenomena.

The exam consists of a written exam on the entire program by assigning open questions and exercises. Oral examination is optional.

Written test: The written exam is structured in three parts. The first two parts are based on theoretical/practical questions weighing 10 and 5 points respectively. The third part is based on 11 multiple choices. To each multiple choice is attributed 1.5 points. No penalties for wrong answers. The total mark is thus 31.5. During the teaching period there is an intermediate test.

The first question is submitted to perform which is assigned 30 minutes of time. Once the first question has been withdrawn, the second one is delivered and another 20 minutes allocated. When the second question is withdrawn, the third question is then handed out and another 20 minutes of time allocated for its completion. In order to pass the examination, all three parts of the examination must be sufficient.

Support materials such as textbooks, articles, and notes can not be used during the exam. It is, however, possible to use the calculator.

Optional oral: oral exam is optional. It may result in a positive and negative vote adjustment with a change of + 3 or 3 points over the score reached in the script.

Verbalisation: the verbalisation of the obtained evaluation takes place on the date fixed and indicated in Almaesami. On that date, an optional oral term may be supported. On that date you can also take a look at the task and ask for clarification. In the absence of instructions from the student, the vote will be automatically verbalized.

As foreseen in the teaching regulations, two partial tests are planned: the first one at the end of March / beginning of April and the second at the end of May / beginning of June. Those who do not pass the first partial test can fully support the examination at the first appeal that will be set at the same time as the second partial test.

To take the exam you must sign up through Almaesami within the due deadlines.

Teaching tools

Lectures with projector support.

Office hours

See the website of Paola Brighi