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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.
