Surrey University Stag

FUNDAMENTALS OF FINANCIAL ECONOMICS - 2023/4

Module code: ECO2061

Module Overview

This module covers the core elements of the theory of finance and financial markets institutions which form the basis for all other finance modules in Year 2 and Year 3. Understanding the time value of money and how to compute present and future values is the key building block in the pricing of financial assets. The module also covers the characteristics of several markets including money and capital markets, foreign exchange markets and derivative markets.

Module provider

Economics

Module Leader

GARFAGNINI Umberto (Economics)

Number of Credits: 15

ECTS Credits: 7.5

Framework: FHEQ Level 5

JACs code:

Module cap (Maximum number of students): N/A

Overall student workload

Independent Learning Hours: 90

Lecture Hours: 22

Guided Learning: 38

Module Availability

Semester 1

Prerequisites / Co-requisites

None

Module content

-The role of financial markets
-Time value of money
-Term structure of interest rates
-Arbitrage arguments
-Money market securities
-Bonds and stocks
-Foreign exchange markets
-Derivative markets

Assessment pattern

Assessment type Unit of assessment Weighting
School-timetabled exam/test CLASS TEST 30
Examination EXAMINATION 70

Alternative Assessment

N/A

Assessment Strategy

The assessment strategy is designed to provide students with the opportunity to demonstrate how to use financial concepts and apply them to their understanding of the pricing of financial assets and the functioning of financial markets.

Thus, the summative assessment for this module consists of:

Class test worth 30% of the final mark.
Final exam covering the entire module worth 70% of the final mark.


Formative assessment and feedback
Students will receive verbal feedback during in-person lectures and office hours. Students are provided with problem sets relating to the material covered in the lectures which they can solve either independently or in groups. Students receive guided captured content solutions to the problem sets. Information about the assessments and sample papers are provided at the beginning of the semester for students to familiarize themselves with the setup of both assessments. Students will receive feedback on the class test after the normal University marking period.

Module aims

  • Introduce students to core elements and tools of modern finance to prepare for material covered in subsequent finance modules.
  • Provide an understanding of the role played by financial markets in modern economies.
  • Apply financial concepts and tools to analyze the behavior of asset prices.
  • Prepare students for a career in the financial sector.

Learning outcomes

Attributes Developed
001 Students will be able to apply the principles behind the pricing of financial assets. KP
002 Students will be able to define and use financial terminology. CK
003 Students will be able to connect concepts learned in economic modules to the functioning of financial markets. CKT
004 Students will be able to interpret economic events and forecast their implications for financial markets. PT

Attributes Developed

C - Cognitive/analytical

K - Subject knowledge

T - Transferable skills

P - Professional/Practical skills

Methods of Teaching / Learning

The learning and teaching strategy is designed to: Using in-person lectures to develop students' understanding of finance. Students will learn theoretical concepts and how to apply them to understand real-world problems related to the topics covered in the lectures. Problem sets are designed to help students deepen and solidify the knowledge developed during lectures and answers are delivered by pre-recorded captured content.

The learning and teaching methods include:
2 hour lecture per week x 11 weeks

Indicated Lecture Hours (which may also include seminars, tutorials, workshops and other contact time) are approximate and may include in-class tests where one or more of these are an assessment on the module. In-class tests are scheduled/organised separately to taught content and will be published on to student personal timetables, where they apply to taken modules, as soon as they are finalised by central administration. This will usually be after the initial publication of the teaching timetable for the relevant semester.

Reading list

https://readinglists.surrey.ac.uk
Upon accessing the reading list, please search for the module using the module code: ECO2061

Other information

This module incorporates some of the University's five pillars of learning as follows:

Resourcefulness and resilience: Students will learn how to make constructive contributions to class debates and embrace different perspectives on real-life problems. Students will also be able to develop their problem-solving skills through agile thinking about financial decision making.

Global capabilities: Students will learn how to communicate in an international context which embraces cultural diversity and diverse viewpoints about financial topics.

Employability: This module will provide students with financial skills needed for job interviews, placements and their future careers.

Programmes this module appears in

Programme Semester Classification Qualifying conditions
Economics and Finance BSc (Hons) 1 Compulsory A weighted aggregate mark of 40% is required to pass the module

Please note that the information detailed within this record is accurate at the time of publishing and may be subject to change. This record contains information for the most up to date version of the programme / module for the 2023/4 academic year.