FINANCE
syllabus and requirements, AY 2014-2015., 2nd semester
BA Finance
Subject’s title:
Basics of Finance (Finance)
Type of subject:
B.A. finance and accounting, A module, English
Prerequisites:
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Credits (ETCs), Contact hours per week:
3 ETCs, 2 hours per week
Exam type:
term exam
Department:
Finance Department
Course leader:
dr. Gergely Harsányi
Course leader’s title:
Associate professor
Lecturer:
Dr. Gyorgy Komaromi (gyorgy@komaromi.net)
Semester:
2.
Aims of the course:
In accordance with the general disciplines of the B.A studies, this course in Finance is about to deliver basic
understandings in relation with the role of money in the realisation of incomes, and in relation with the
instruments and contemplating institutions within the flow of funds.
Weekly schedule:
Week
Week 1
28.01.2015.
Week 2
04.02.2015
Week 3
18.02.2015.
Week 4
25.02.2015
Week 5
04.03.2015
Week 6
11.03.2015
Week 7
18.03.2015
Week 8
25.03.2015
Week 9
01.04.2015
Week 10
08.04.2015
Week 11
15.04.2015
Week 12
22.04.2015
Topic
Registration,
Basics and function of financial system, and its structure and sectors.
Basics for money: definition and role of the money (with a brief historical overview).
Explanations for the inflation phenomenon
Monetary policy and institutions
The constitution of the two-tier banking system: the core functions of the central bank
and the credit institutions
Bank activities: active, passive and neutral banking operations
Spring Break
Mid term exam week I.
Securities’ markets: instruments, primary issue and secondary trading
Financial markets: instruments and rules for contracting.
Fiscal policy and institutions
State budgeting, and Deficit management.
Week 13
29.04.2015
Week 14
06.05.2015
Week 15
13.05.2015
The Balance of Payments
Foreign exchange rate policies. The monetary union (EMU)
Mid term exam week II.
Assessment
Oral term exam: At the end of the semester, an oral exam is closing the course. The exam is to be connected
to queries given in advance.
Grading
The final mark will be composed of (i) the oral exam and (ii) the students’ class contribution (participation in
the discussions to be held connecting to the lectures).
Grades will be given according to the following pattern: oral exam: 90%; class contribution: 10%
Compulsory and recommended readings
Compulsory reading:
Mishkin F. S.: Economics of Money, Banking & Financial Markets, 9 th edition, Addison-Wesley 2010 – definite
parts (as indicated on the lectures)
Recommended reading:
Lloyd B., Thomas: Money, banking and financial markets (Mason: Thomson/South-Western, 2005.) – definite
parts (as indicated on the lectures)
Joseph E. Stiglitz: Economics of the Public Sector: Third Edition (W.W. Norton & Company, February 2000.) –
definite parts (as indicated on the lectures)
2015. 02. 09.
dr. György Komáromi