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Financial Markets and Institutions Minor
The Financial Markets and Institutions Minor is aimed primarily at Finance Majors who want to develop a deeper understanding of the financial intermediation process and financial economics.
Financial intermediation deals with how savings in the economy are channeled to individuals and businesses in need of funding. The stock, bond, and derivatives markets; banks; credit unions; insurance companies; mutual funds; private equity firms; and hedge funds are key players in this system. Globally, the International Monetary Fund and World Bank also have important roles to play keeping the intermediation process operating effectively. If funds stop flowing, then companies and economies will fail.
Financial economics includes topics like free trade and protectionism, balance of payments, interest rate movements, and exchange rate fluctuations. These are important macroeconomic issues that financial industry professionals must understand.
Learning objectives
Upon completion of this program, students are able to:
- Describe how the domestic money supply is determined and the operation and regulation of the Canadian financial system.
- Explain the macroeconomic aspects of globalization including gains from trade, protectionism, capital movements, exchanges rates, international monetary system and economic development.
- Summarize the operation and regulation of the international financial system and the threats to its ongoing stability.
- Discuss the asset/liability strategies employed by different financial institutions and the methods used to measure and control risk.
- Illustrate how exchange rates are determined in the short and long run and the policy measures governments can undertake to manage these rates.
Program requirements
| At least four of: |
ECON 3100 Canadian Financial Markets (3,0,0)ECON 3100 Canadian Financial Markets (3,0,0)Credits: 3 credits Students are introduced to money, banking, and the Canadian financial system. Topics include an overview of financial markets, interest rates and the structure of interest rates, the efficiency of financial markets, financial regulation, banks and other financial institutions, financial institutions risk management, the role of the central bank, the money supply, and monetary policy.
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ECON 3550 International Economics (3,0,0)ECON 3550 International Economics (3,0,0)Credits: 3 credits Students analyze the movement of capital, goods, and services across international boundaries and assess their financial impact. With advances in transportation and communication, greater outsourcing, and increased globalization, trade, and foreign direct investment, the corresponding capital movements are becoming much more important to the global economy. Topics include the theories of absolute and comparative advantage; modern theories of trade, including factor-proportions; tariff and non-tariff barriers; current and capital accounts; exchange rate determination; balance of payments and exchange rate policy; evolution of the international monetary system; and trade and economic development.
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ECON 4100 International Financial Markets (3,0,0)ECON 4100 International Financial Markets (3,0,0)Credits: 3 credits Students examine international financial markets and institutions and their critical role in the global economy. Topics include the elements that constitute a global financial institution; types of financial institutions and markets; global market structure differences; recent market failures, their causes, and solutions; and global financial regulation and reform.
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FNCE 4190 Financial Institutions Management (3,0,0)FNCE 4190 Financial Institutions Management (3,0,0)Credits: 3 credits Students explore the different financial intermediaries in our economy, the financial risks they are exposed to, and how these risks are measured and managed. Topics include the types of financial institutions including deposit-taking institutions, insurance companies, securities firms, investment banks, mutual funds, hedge funds, pension funds, and finance companies; regulation of the financial industry; measuring risk including interest rate risk, market risk, credit risk, liquidity risk, off-balance sheet risk, foreign exchange risk, sovereign risk and technology and other operational risks; managing risk through the use of derivatives, loan sales and securitization; and managing risk through deposit insurance and other liability guarantees and capital adequacy standards.
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ECON 4560 International Macroeconomics and Finance (3,0,0)ECON 4560 International Macroeconomics and Finance (3,0,0)Credits: 3 credits Students explore the determination of exchange rates in an open economy and policies that governments may adopt to influence their movement. Topics include balance of payments; foreign exchange markets; interaction of the money, interest rates and exchange rates; exchange rates in the long run, including purchasing power and interest rate parity; exchange rates in the short run; fixed exchange rates and foreign exchange intervention; history of the international monetary system; macroeconomic policy under floating exchange rates; and performance of global capital markets and policy issues.
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