Page 45 - BEc_Handbook_2024_2025

2. FINANCIAL ECONOMICS

EIG2001 MONEY AND BANKING
3 Credits

Pre-requisite None

Learning At the end of the course, students are able to:
Outcomes
1. Explain the role of money in modern financial systems.
2. Explain how the interest rates are determined, what are the factors affecting their
behaviour and what is their risk and term structure.
3. Identify the role of financial institutions and how banks are different from other
financial intermediaries.
4. Analyze the role and functions of central banks and the formulation of the monetary
policy and its implementation.
Synopsis The course aims to provide the student with an introduction to the role of money, financial
markets, financial institutions and monetary policy in the economy, thus providing a solid
foundation for further study in the financial field or employment in the financial services
industry.

Medium of English
Instruction

Assessment Continuous Assessment : 60%
Weightage Final Examination : 40%

EIG2002 MONETARY ECONOMICS
3 Credits

Pre-requisite None

Learning At the end of the course, students are able to:
Outcomes
1. Describe the basic concepts and theoretical frameworks in monetary economics.
2. Apply theories of monetary economics to the real world.
3. Analyze the conduct and operation of monetary policy in closed and open economies.

Synopsis This course deals with the common topics in monetary economics. It first introduces the
basic concepts and functions of money and then proceeds to discuss the demand for and
supply of money and monetary controls. How monetary policy can be relied upon as a
macroeconomic stabilization policy is then discussed in the contexts of monetary
transmission mechanisms, macroeconomic policies, monetary policy regimes, inflation and
unemployment; money and output, exchange rate determination and finally monetary policy
instruments.

Medium of English
Instruction

Assessment Continuous Assessment : 50%
Weightage Final Examination : 50%