Money, financial institutions and markets

Financial environment of economic activities and its possibilities. Processes and factors creating the demand for financial services and instruments. Financial sector services and instruments and risks connected to these. Money and the basics of monetary and financial systems with the basics of international finance. Types of financial intermediators, banking, financial markets, instruments and services. Types of interest rates, rates of return and market indexes. Spreads in time and by the sectors. The role of international financial organizations and basics of international finance. Exchange rates, their use in calcualtions and evaluation of financail risks. The role of central banks in the monetary system and in bank regulation and supervision. The basics of fiscal and monetary policies, their interdependence. Firm-oriented financial solutions and risks connencted to these solutions.

NB! This course will take place in spring semester 2024/2025 which starts on 3rd of February and ends on 16th of June (you can find that information under Start date section). The real course start and end dates will be announced at the beginning of February at the latest.

1. Student has basic knowledge about the financial system, services, and istruments; 2) students is able to make evidence based selection amongst different financial instruments and services.

Final assessment can consist of one test/assignment or several smaller assignments completed during the whole course. After declaring a course the student can re-sit the exam/assessment once. Assessment can be graded or non-graded. For specific information about the assessment process please get in touch with the contact person of this course. For specific information about grade transfer please contact your home university

Prerequisites (but not strict): Basic Finance

• Põhiõpikud:
• P.Howells, K.Bain. The economics of money, banking and finance. Prentice Hall: 2008
• A.Roos, M.Nurmet, N.Ivanova, P.Sander. Finantsturud ja –institutsioonid TÜ: 2012
• Soovituslik kirjandus:
• - Väärtpaberite teejuht. Eesti Päevaleht: 2008 (VT)
• - Investeerimise teejuht. Äripäev: 2007 (IT)
• - Frederic Mishkin, The Economics of Money, Banking, and Financial Markets -- Business School Edition, 2nd Edition, Addison Wesley, 2010.

lectures, exercises