54709 - Financial Markets and Instruments

Learning outcomes

a) The course aims to provide basic knowledge on the structure, regulation and functions of the financial system. To this end, once the intermediation, monetary and monetary policy transmission function has been understood, the course explores the activities and functions of intermediaries, from a managerial and regulatory point of view; the instruments, with reference to the financial needs met and the return/cost and risk characteristics; regulation with particular reference to risk supervision.
b) the course aims to promote the application of theoretical contents to practical cases through discussion and carrying out exercises.
c) the course aims to stimulate the making of judgments through the discussion of case studies in which the main objective is to develop problem solving skills and the interception of the specificities and singularities of the proposed cases. Judgment independence is also developed through the drafting of projects on new and little-explored topics.
d) the knowledge acquired during the course will allow students to master the technical language and to draw up reports and documents on banking and financial topics.
e) the course aims to develop and refine students' learning skills and to develop their ability to analyze and critically evaluate events involving instruments, intermediaries and markets.

Course contents

The financial system: components
contracts
markets
intermediaries
regulation

Functions of the financial system:
payment system
transmission of monetary policy
intermediation

Reasons for the existence of intermediaries - classification
Banks
Non-bank credit intermediaries
Securities brokers
Participation intermediaries

Principles of bank management
Investment needs: Bank deposits and bank funding tools
Financing needs: financing instruments and bank employment instruments

Risk management in financial institutions

Regulation of the financial system

Readings/Bibliography

Frederic S. Mishkin, Stanley G. Eakins, Elena Beccalli, Istituzioni e mercati finanziari, nona ed., Milano, Pearson Ed., 2019, capp. 1, 2, 3, 6, 7 (only par. 7.7), 8, 9 , 10 (only 10.6, 10.7 e 10.8), 11 (except 11.5), 12, 13, 14, 15, 17, 20, 21, 22.

Teaching methods

Lectures, testimonials, discussion, exercises and group work

Assessment methods

The method to assessment of knowledge is in written form. The written test aims to verify the understanding of the topics from a theoretical and practical point of view through open questions, exercises and multiple choice tests. The exam, for which it is necessary to have a financial calculator, aims to verify the achievement of the following educational objectives: know the functions and components of the financial system; know the characteristics and functions of the various financial intermediaries; know the evaluation methods of the most important decision-making variables of a financial intermediary: returns/risks/prices.

Preparation is assessed through a final written exam of a maximum duration of 60 minutes which takes place on Esami On Line (EOL): participation is allowed only to students i) who have registered for the test on Almaesami and ii) in good standing with the payment of tuition fees.

The exam is divided into three parts: 15 closed multiple choice questions of which only one is correct: the correct answer is worth one point, the missing or incorrect answer zero points 2 exercises (3 points each) 3 open questions (4 points each). The maximum score achievable (33) corresponds to thirty cum laude.

In particular with reference to the level of preparation demonstrated in the exam: <18: insufficient 18-23: sufficient 24-27: good 28-30: excellent 30 cum laude: excellent

A facsimile of the exam paper is available on EOL.

In addition, as required by the rules approved by the School, current students can take the exam through two partial tests with the same structure described above. Participation in the second partial exam is allowed, once and only once, even if a mark of less than 18 is achieved in the first exam. The final evaluation is made up of the arithmetic mean of the evaluations achieved in the two partial exams: students who do not they will have passed the exam through the partial tests they will have to take it again, on the whole program, at the first useful official exam session. It is possible to view the correct exam papers on EOL and ask for clarifications through appointments fixed with the teacher through teams.

The recording of grades takes place automatically (in the student's absence) electronically not before the fifth day following the publication of the results on Almaesami: the grade can be refused once (art. 16, paragraph 5 University teaching regulations). Graduating students who need to record their grade in advance are invited to communicate it to the teacher by e-mail

Teaching tools

Slides, articles taken from financial newspapers, made available in electronic format

Office hours

See the website of Simona Cosma