CLO
Descriptions
Topics
Calculation YTM, duration, return and risk
CLO 1.2
Calculate interest rates and Show
how interest rates are determined
and forecast interest rates
CLO 2.1
Present operations of various
financial institutions
Forecast interest rate using bond market model, money market
model, and structure of interest rate
Operations and management of bank (reserves, credit risk and
interest rate risk management), finance companies, insurance
company, investment bank, investment funds (ETFs)
Present differences in operations among institutions
CLO3.1
CLO 3.2
Calculate the money supply
using simple and complete
model and forecast the behavior
of the money supply
Money supply process: simple and complete models
Present the functions of the
central bank and relate tolls,
strategies and the transmission of
monetary policy to current Fed
and central banks activities.
Present Goals and Tools of monetary policy
Use T-account to illustrate money creation process
Calculate money supply and money multiplier
Applications: money supply and crisis
Market for bank reserves: forecast Fed rate
Tactics and Taylor rule
Strategy: inflation targeting and “Just do it” approach
Forecast Fed action
Present monetary transmission channel