1. Introduction. What is money? Functions of money. Motives for holding cash/near cash balances. What is the price of money? Financial market and it's participants.
2. Money market. Marketable securities. Treasury Bills. Commercial papers. NBP bills. Other bills. Yield curve.
3. Depository lending market. Real/effective interest on borrowing. Simple interest. Compounded interest: annual compounding, more frequent compounding, continuous compounding. Irregular payments. Future values. Regular payments: annual payments with annual compounding, annual payments with more frequent compounding, more frequent payments with more frequent compounding. Present values: single payments, annual discounting, more frequent discounting, continuous discounting. Mortgage loans. Problems with interest rate volatility. Polish (EU) regulations on consumer loans.
4. Bonds market. Structure of Polish debt. Valuation of a bond. Duration, convexity, dispersion.
5. Capital market. Structure of the market. Stock markets worldwide. Primary market. Stock exchange. Asssets traded. Risk on capital market. Investing on the stock market. Framework of fundamental analysis. Common Ratios and what they mean. Technical Analysis. Trendlines. Price patterns. Dow and Elliott wave theory. Futures and short selling.
6. Futures market and option market. Daily marking to market. Short term interest rate futures. Long-term interest rate futures. Currency futures. Stock index futures. Options. Reasons to use options. Financial leverage.
7. Foreign exchange market. Functions of currency market. Transactions in the interbank market Spot and forward markets. Foreign exchange rates and quotations. General view of the market
8. Swaps market. Interest rate swaps. Currency swaps. Basis swaps.
9. Investing internationally - Country risk evaluation
10. Capital account liberalization and financial integration. Currency, banking, debt and systemic crises.
11. Currency crises and stabilization in open economies. Capital mobility and macroeconomic policy in the European Union. Capital controls and microeconomic efficiency in the Asia-Pacific region. Fiscal instability and exchange rates in Latin America
12. Negative aspects of financial internationalization. Tax evasion and tax avoidance. Transfer pricing. Money laundering.
Type of course
Basic and medium levelknowlegdge about markets, securities, general environment, conditions and rules for undertaking financial decisions.
KW01, KW02, KW03, KU01, KU02, KU03, KU04,
written exam, exercises similar to the presented during the course or an essay on a given topic
D. Blake, Financial market analysis, John Wiley & Sons, 2000
P. de Grauwe, Economics of Monetary Union, Oxford University Press, 2000
L. J. Gitman, Principles of managerial finance, Addison Wesley, 2000
F. S. Mishkin, The economic of money, banking, and financial markets, Addison Wesley, 1998
W. Dębski, Rynek finansowy i jego mechanizmy, WN PWN, Warszawa, 2002
B. Pietrzak et al., System finansowy w Polsce, WN PWN, Warszawa 2008
J. Czekaj et al., Rynki, instrumenty i instytucje finansowe, WN PWN, Warszawa 2008
Information on level of this course, year of study and semester when the course unit is delivered, types and amount of class hours - can be found in course structure diagrams of apropriate study programmes. This course is related to the following study programmes:
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: