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Last updated: 13 Feb 2014

BFC2000 Financial institutions and markets - Semester 1, 2014..........................................................1
Mode of Delivery..............................................................................................................................1
Workload requirements....................................................................................................................1
Additional workload requirements........................................................................................1
Unit Relationships........................................................................................................................................1
Prohibitions......................................................................................................................................1
Chief Examiner(s)........................................................................................................................................1
Campus Lecturer(s).....................................................................................................................................1
Clayton.............................................................................................................................................1
Tutor(s)........................................................................................................................................................2
Clayton.............................................................................................................................................2
Your feedback to Us....................................................................................................................................2
Previous Student Evaluations of this Unit....................................................................................................2
Academic Overview...................................................................................................................................3
Learning Outcomes.........................................................................................................................3
Unit Schedule.............................................................................................................................................4
Teaching Approach..........................................................................................................................4
Assessment Summary.....................................................................................................................5
Hurdle Requirements...........................................................................................................5
Second marking...................................................................................................................5
Return of final marks............................................................................................................6
Exam viewing.......................................................................................................................6
Assessment criteria..............................................................................................................6
Assessment Requirements......................................................................................................................7
Assessment Tasks...........................................................................................................................7
Assessment task 1...............................................................................................................7
Assessment task 2...............................................................................................................8
Examination(s).............................................................................................................................................8
Examination 1..................................................................................................................................8
Learning resources......................................................................................................................................9
Feedback to you..........................................................................................................................................9
Assignment submission...............................................................................................................................9
Online submission...........................................................................................................................9
Prescribed text(s) and readings.......................................................................................................9
Technological Requirements.......................................................................................................................9
Other Information....................................................................................................................................10
Policies..........................................................................................................................................10
Graduate Attributes Policy.................................................................................................10
Student Charter.........................................................................................................................................10
Student services........................................................................................................................................10
Monash University Library.........................................................................................................................10
Moodle 2....................................................................................................................................................10
Disability Liaison Unit................................................................................................................................11

The unit provides a broad overview of the functioning of a developed financial system. Coverage includes retail and wholesale payments systems; the roles of deposit-taking institutions; insurance corporations and funds management within the financial system; and their sources and application of funds. The role and function of the main financial markets including the money market, bond market, share market, foreign exchange market and derivatives market. The role and responsibilities of the central bank and prudential supervisor.
Clayton (Day)
3 hours per week
This is a six credit point unit with three hours class contact per week over 12 teaching weeks. It is expected that you will spend, on average, nine hours in self-directed study each week, in addition to the three hours of class contact. Self-directed study for a particular unit may exceed nine hours during weeks preceding an in-semester test, submission of a major assignment or final examination.
AFC1100, AFC2100, AFF1300, BFF1300, AFG1300, BFG1300, AFW1300, BFW1300, BFB1300,
AFC2000
Dr Minh Do
Andrew Sandford
Minh Viet Do
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BFC2000 Financial institutions and markets - Semester 1, 2014
Ms Neeru Chaudhry
Campus: Caulfield
Email: Neeru.Chaudhry@monash.edu
Miss Pearpilai Jutasompakorn
Campus: Caulfield
Email: Pearpilai.Jutasompakorn@monash.edu
Dr Amale Scally
Campus: Caulfield
Email: Amale.Scally@monash.edu
Jesslyn Lim
Monash is committed to excellence in education and regularly seeks feedback from students, employers and staff. One of the key formal ways students have to provide feedback is through the Student
Evaluation of Teaching and Units (SETU) survey. The University’s student evaluation policy requires that every unit is evaluated each year. Students are strongly encouraged to complete the surveys. The feedback is anonymous and provides the Faculty with evidence of aspects that students are satisfied and areas for improvement.
For more information on Monash’s educational strategy, see: www.monash.edu.au/about/monash-directions/ and on student evaluations, see: www.policy.monash.edu/policy-bank/academic/education/quality/student-evaluation-policy.html
If you wish to view how previous students rated this unit, please go to https://emuapps.monash.edu.au/unitevaluations/index.jsp
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The learning goals associated with this unit are to:
1. describe the institutions, instruments and markets that comprise a developed financial system
2. apply the concepts and techniques used by financial professionals in the debt, equity, foreign exchange and derivative markets
3. define the specialist terms and language of finance
4. apply the knowledge of financial mathematics to the pricing and valuation of equity, debt and derivative instruments
5. apply critical thinking, problem solving and presentation skills to individual and/or group activities dealing with introductory finance and demonstrate in an individual summative assessment task the acquisition of a comprehensive understanding of the topics covered by BFC2000.
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Week
0
Activities
1 Overview
2 The monetary authorities, RBA and interest rate
3 The monetary authorities, RBA and interest rate
(Continued)
4 Regulation and operation of Australian banking industry
5 Bond markets and bond prices
6 Bond markets and bond prices (continued)
7 Money markets
8 Equity markets
9 Derivative markets
10 International markets
11 Investment banks
12 Other financial institutions and revision
SWOT VAC
Examination period
Assessment
No formal assessment or activities are undertaken in week 0
Group Assignment Due
Mid semester test
No formal assessment is undertaken
SWOT VAC
LINK to Assessment Policy: http://policy.monash.edu.au/policy-bank/ academic/education/assessment/ assessment-in-coursework-policy.html
Lecture and tutorials or problem classes
This unit will be taught as a two-hour lecture and one-hour tutorial each week for 12 weeks (36 hours). It is important that you attend the lectures and contribute actively to the discussion during the tutorials.
The lectures will cover significant points of the topics. It is not intended that they will cover every aspect of each topic, but rather provide a framework of the important theoretical concepts and practical issues. It is against this background that you are expected to attend lectures and participate actively and spend additional private study time on the references indicated in the unit outline on Moodle. Lectures are not a substitute for the reading.
In addition a set of additional suggested from the textbook will be highlighted at the end of each lecture.
You are encouraged to practice these questions and check your answers provided on the Moodle site on a weekly basis. Discuss with your lecturer if you have any difficulties in understanding the questions and solutions during lectures.
A number of past exams with solutions are provided on the Moodle site as well.
To ensure a high probability of successful completion of this unit, students need to approach it in a
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Unit Schedule systematic way. The teaching staff recommend the following:
• read the prescribed material prior to the teaching session;
• summarise lecture materials on a weekly basis;
• attend and participating in class;
• prepare the workshops’ cases prior to class;
• review material from additional references when required; and
• attempt all “Practice Questions” and “Past Exams” available on Moodle prior to the exam.
If you feel you have a weak grasp of mathematics you may benefit from reviewing the material covered in the first tutorial.
Within semester assessment: 30%
Examination: 70%
Assessment Task Value Due Date
Group Assignment 15% 30 April 2014
In-semester test
Examination 1
15%
70%
Week 10: other details TBA
To be advised
There is a hurdle requirement for this unit. The learning outcomes of this unit require you to demonstrate a comprehensive understanding of the topics covered in the unit. Hence the hurdle requirement for this unit requires that you must attain a mark of at least 50% in the final examination. If you fail the unit solely because of failure to satisfy the hurdle requirement, a mark of 48 will be determined by the faculty's Board of Examiners on the recommendation of the unit's Chief Examiner.
The outcome from application of the hurdle requirement is often misunderstood by students who are awarded 48N. For example, some students mistakenly believe that 48N means they failed the final examination by two marks and that a second re-mark of their examination paper might find two extra marks. Whereas 48N does not provide any indication of the mark attained in the final examination other than a mark less than 50% was awarded.
The following example should make the application of the hurdle requirement clear. In this unit 30% of the assessment regime is allocated to in-semester assessment and 70% to the final 3-hour examination.
A student enrolled in this unit might achieve 30 out of 30 for their in-semester assessment and 30 out of
70 for the final examination. While the overall total of these marks is 60C the final examination mark is five marks below the required 50%. Consequently a mark of 48N will be determined by the faculty's
Board of Examiners on the recommendation of the unit's Chief Examiner.
Where an assessment task is given a fail grade by an examiner, that piece of work will be marked again by a second examiner who will independently evaluate the work, and consult with the first marker. No student will be awarded a fail grade for an assessment task or unit without a second examiner confirming the result.
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Unit Schedule
Note: Exceptions to this are individual pieces of assessment contributing 10% or less of the final mark, unless the total of such pieces exceeds 30% of the final mark.
Faculty policy states that 'the final mark that a student receives for a unit will be determined by the Board of Examiners on the recommendation of the Chief Examiner taking into account all aspects of assessment'.
The final mark for this unit will be released by the Board of Examiners on the date nominated in the
Faculty Calendar. Student results will be accessible through the my.monash portal.
Details of the examination script viewing arrangements set down by the Department of Accounting and
Finance are available HERE.
Assessment Criteria Grading Descriptors available at: http://www.buseco.monash.edu.au/esg/agu/policies/assessment.html.
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•
Title:
Group Assignment
Due date:
30 April 2014
Details of task:
On the 6th May 2014, the Reserve Bank of Australia (RBA) board will meet to discuss domestic and global economic conditions to come up with a monetary policy statement and decide on the appropriate level of cash rate. In this assignment, you are required to put yourself in the position of a board member and write a maximum 1500-word report with your recommendation to the board about the appropriate level of cash rate. Your report should contain an explicit recommendation whether to increase, decrease (by how many basis points) or sustain the level of cash rate. More importantly, you need to provide three major argument points for that recommendation. These reasons should take into account the domestic and global economic conditions and aim to achieve the three objectives of the monetary policy set out by RBA. The three main points should NOT be the three objectives of monetary policy rather they are what you consider important factors that can effects the monetary policy.
This is a group assignment with two members in a group. However, you are given the opportunity to do this as an individual assignment if you wish to do so.
Release dates:
3 March 2014
Word limit:
1500
Weighting/Value:
15%
Presentation requirements:
Group report
Estimated return date:
Marks will be return along with your assignment by your tutors at the end of the tutorials in week 12.
Criteria for marking:
The majority of the marks will be rewarded for the depth of your analysis in explaining your recommendation. This analysis can take into account the past relevant information
(such as a previous cash rate decision) but may also require up-to-date information about current economic conditions.
Overall, the work submitted for assessment will be graded in accord with the table showing examples of grades and corresponding achievement levels published in the Q
Manual (2012, p.6).
Detail marking rubric will be available on Moodle.
Learning objectives assessed:
This assessment task is designed to test your achievement of learning objectives 1 to 5.
Submission details:
The assignment should be submitted via Turnitin. Further instruction will be provided on
Moodle.
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Assessment Requirements
Penalties for late lodgement:
1 mark out of 15 will be deducted for each day late.
Assessment coversheet:
All assignment must fill out and sign the assignment cover sheet.
•
Title:
In-semester test
Due date:
Week 10: other details TBA
Details of task:
This will be a 60-minute test.
The class test is a closed book test. Students may bring in pens, pencils, rubbers (and/or liquid paper) and a faculty approved calculator. Some questions will require calculation; therefore students are strongly advised to bring a calculator. The class test will comprise
100% of multiple choice questions. The multiple choice format is used to ensure that students receive timely feedback with regard to their current unit performance. You will be required to answer all questions, and respond by filling in a General Purpose Answer
Sheet.
The in-semester test will cover all materials up to and including week 8 lecture (this include the tutorial materials of lecture 8 covered in week 9 tutorials), as well as financial mathematics. If any changes to this occur, they will be communicated by announcements in lectures and via Moodle. Students are highly advised to check Moodle announcements on a regular basis to ensure that they are aware of any late changes.
Weighting/Value:
15%
Estimated return date:
Marks will be published via the Moodle Grade Book approximately one week after the class test. Student papers will be returned to you for your review in tutorials by your respective tutors. Students may then check and discuss any concerns they have with their tutors. The test papers must be returned to your tutors at the end of the tutorials.
Learning objectives assessed:
This assessment task is designed to test your achievement of learning objectives 1 to 5.
Additional information:
If an application for special consideration is received within two full days after an in-semester test weighted at more than 10 per cent of the final mark; and the application is approved by the Chief Examiner, then you will be offered a make-up test, which you will be required to take prior to the examination period.
•
Weighting:
70%
Length:
3 hours
Type (open/closed book):
Closed book
Electronic devices allowed in the exam:
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Assessment Requirements
Approved calculators will be permitted.
Remarks:
This assessment task is designed to test your achievement of learning objectives 1 to 5.
All materials, including lecture materials, tutorial materials, and prescribed reading will be examinable.
Overall, the work submitted for assessment will be graded in accord with the table showing examples of grades and corresponding achievement levels published in the Q
Manual (2012, p.6).
Monash Library Unit Reading List (if applicable to the unit) http://readinglists.lib.monash.edu/index.html
Types of feedback you can expect to receive in this unit are:
• Other: Monash aims to provide a learning environment in which students receive a range of ongoing feedback. This may take the form of group feedback, verbal (in lecture feedback from your ClickOn answers) as well as more formal feedback related to assignment marks and grades.
You are encouraged to draw on a variety of feedback to enhance your learning.
If Electronic Submission has been approved for your unit, please submit your work via the learning system for this unit, which you can access via links in the my.monash portal.
Kidwell, D. S., Brimble, M., Basu, A., Lenten, L., & Thomson, D (2011). Financial markets institutions and
money (2nd ed.). Wiley.
Electronic devices (including calculators) are not permitted in tests and examinations in this unit unless identified with an “approved for use” label.
These labels are available from:
• Clayton Campus: Accounting and Finance General Office (Building 11, Level 10)
• Sunway Campus: Course Management Staff (Building 6, Level 4, Room 9)
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Monash has educational policies, procedures and guidelines, which are designed to ensure that staff and students are aware of the University’s academic standards, and to provide advice on how they might uphold them. You can find Monash’s Education Policies at: www.policy.monash.edu.au/policy-bank/academic/education/index.html
Key educational policies include:
• Student Academic Integrity Policy and Student Academic Integrity: Managing Plagiarism and
Collusion Procedures ;
• Assessment in Coursework Programs;
• Special Consideration;
• Grading Scale;
• Discipline: Student Policy;
• Academic Calendar and Semesters;
• Orientation and Transition; and
• Academic and Administrative Complaints and Grievances Policy.
http://www.policy.monash.edu/policy-bank/academic/ education/management/monash-graduate-attributes-policy.html
www.opq.monash.edu.au/ep/student-charter/monash-university-student-charter.html
The University provides many different kinds of support services for you. Contact your tutor if you need advice and see the range of services available at http://www.monash.edu.au/students
The Monash University Library provides a range of services, resources and programs that enable you to save time and be more effective in your learning and research. Go to www.lib.monash.edu.au or the library tab in my.monash portal for more information.
All unit and lecture materials, plus other information of importance to students, are available through the virtual learning environment Moodle site. You can access Moodle via the my.monash portal.
Where to go for help
If you're stuck, confused or simply not sure how to approach Moodle, there are a number of Moodle resources that you can tap into.
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Other Information
Students who have a disability or medical condition are welcome to contact the Disability Liaison Unit to discuss academic support services. Disability Liaison Officers (DLOs) visit all Victorian campuses on a regular basis.
• Website: http://www.monash.edu/equity-diversity/disability/index.html
• Telephone: 03 9905 5704 to book an appointment with a DLO;
• Email: dlu@monash.edu
• Drop In: Equity and Diversity Centre, Level 1, Building 55, Clayton Campus.
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