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Description and analysis of the financial system, focusing on financial markets (domestic and international), financial asset trading mechanisms, market efficiency, institutions (intermediaries) and instruments (stocks, bonds, hybrid securities including derivatives).
This course is an introduction of the financial system, focusing on financial markets (domestic and international), financial asset trading mechanisms, market efficiency, institutions (intermediaries) and instruments (stocks, bonds, hybrid securities including derivatives).In this course, you will learn the importance of the financial system of an economy, how domestic and international financial markets and institutions function, the types of securities traded in markets and the trading mechanisms of financial securities. You will develop an understanding of how to use and evaluate valuation models for financial securities.
The objectives of the course are:1. Demonstrate understanding of the role of the financial system in the economy2. Demonstrate understanding of the function and services of financial institutions3. Demonstrate understanding of the characteristics of money market and capital market, and how securities are traded in financial markets4. Explain how interest rates are determined and the relationship between interest rates and the term to maturity of a financial instrument5. Explain how to calculate the value of a bond6. Value a share with dividend valuation model7. Demonstrate understanding of the characteristics and uses of derivatives such as futures and options8. Demonstrate understanding of the role of reserve banks9. Demonstrate understanding of how foreign exchange markets operate and facilitate international trade10.Discuss the reasons that banks are regulated
(1) STAT101; and (2) A further 45 points.
AFIS214
Students must attend one activity from each section.
Philip Vermeulen
(a) Five online quizzes. Each contributes 3% for a total of 15%.The quizzes will be on Mondays in week 4, 6, 8, 10 and 12. The quizzes will be available for 48 hours from Monday at 11:59 am until Wednesday at 11:59 am (noon!). The first quiz will get available on Monday, 10 March 2025. You will have 45 minutes to complete each and can attempt each quiz twice. You will need to wait one hour between your attempts and the best score will be recorded. The use of AI is not permitted.(b) Term test contributing 40% of the final grade.The date of the term test is TBA later.This will include materials from week one through week 7.(c) The final exam contributing 45% of the final grade.To pass the course, you must earn a 50% or higher overall, but you must also earn a 45% or above on the final exam. It will be scheduled by the university and will be comprehensive (materials week 1 through week 12).To pass this course you must not only achieve a final grade of 50% or higher, but also achieve a weighted average grade of at least 45% across all invigilated assessments.Guidelines for the Use of AI in CourseworkThe use of AI may or may not be permitted in courses. Within a course, permission may vary by assignment. It is the responsibility of the student to inform themselves about assessment conditions and submit work that is their own and that properly acknowledges the work of other people and tools, including generative artificial intelligence tools. It is important to familiarise yourself with the UC Misconduct Procedure Guide for Students. Examples of academic misconduct include, but are not limited to:Where a student uses a generative artificial intelligence (AI) tool for an assessment in a manner that is not expressly permitted or fails to acknowledge the use of a generative AI tool as instructed.Assessment in Te Reo MāoriIn recognising that Te Reo Māori is an official language of New Zealand, the University provides for students who may wish to use Te Reo Māori in their assessment. If you intend to submit your work in Te Reo Māori you are required to do the following:Read the Assessment in Te Reo Māori Policy and ensure that you meet the conditions set out in the policy. This includes, but is not limited to, informing the Course Coordinator 1) no later than 10 working days after the commencement of the course that you wish to use Te Reo Māori and 2) at least 15 working days before each assessment due date that you wish to use Te Reo Māori.
Kidwell, David S; Financial markets, institutions and money ; Fifth edition; John Wiley and Sons Australia, Ltd, 2025.
Domestic fee $1,003.00
International fee $4,538.00
* All fees are inclusive of NZ GST or any equivalent overseas tax, and do not include any programme level discount or additional course-related expenses.
For further information see Department of Economics and Finance .