Money and Banking

Name minor:

Money and Banking

Code:

MINRSM044

Teaching language:

English

Programme which has the coordinating role for this minor:

Rotterdam School of Management, Erasmus University (RSM); Department of Finance & Investments 

Other programmes which are contributing to the minor:

Not applicable

Access:

See admissions matrix

Content

What role does “money” play in our economy? Why are interest rates on long-term loans generally higher than interest rates on short-term loans? How do credit cards actually work? Why do governments regulate banks? And how do banks earn a profit?

The goal of this course is to provide students with the key concepts that are critical to understanding the mechanics of the banking system (money and payments, present value, the structure of interest rates, real interest rates). Using those concepts, we will explore the way that commercial banks as well as central banks work.

Furthermore, a special emphasis will be put on monetary policy, the tools at the disposal of central banks and on current developments within the banking industry.

A closer look at a topic of ever increasing importance, Islamic banking, will round off the course.

Some of the questions addressed in this course will be:

  • What do investors care about?
  • How do we use money and the payment system?
  • How to negotiate your car lease?
  • How do banks work?
  • What is monetary policy and why is it relevant?
  • What are the characteristics of Islamic banking?

Learning objectives:
Following this course, students have a basic working knowledge of:

  • The mechanics of banking and the financial system
  • The functions of money and the payment system
  • The function and challenges of central banks, including policy
  • The main characteristics of Islamic banking

Students will be able to define and calculate:

  • Present value
  • Expected return
  • Standard deviation of the return of a security

Specific characteristics:
It is a major goal of this minor to make the theory and discussion directly applicable to the real world – every class will strive to show students, how the material covered in each session is directly relevant to them.

This course is aimed towards a wide population of students from a multitude of backgrounds.

The required skills for the course are:

  • Basic skills in math and statistics
  • good knowledge of English
  • basic knowledge of corporate finance (appreciated but not necessary)
  • basic knowledge of macroeconomics (appreciated but not necessary)

Organization

Maximum number of students that can participate in the minor: Not applicable
Minimum number of students that can participate in the minor: 10
Contact hours: 15 ects (420 hours)

Teaching methods:
The course consists of interactive lectures (incl. guest lectures) which students need to prepare for by working on assignments, studying teaching materials. Students are expected to hand in a brief, weekly assignment.
Attendance to all lectures is mandatory.

Teaching materials:

  • Textbook: Croushore D., Money and Banking, 2007, Houghton Mifflin
  • Various academic articles & current newspaper articles

Examination

  • Written exam with open questions

Composition of final grade:
The final grade for the course is a weighted average of

  • the written exam with open questions (60%) and
  • written weekly assignments (40%)

Contact information

Contact person:

Florian Madertoner
madertoner@remove-this.rsm.nl 
Phone: +31 10 408 8038
Room: Mandeville Building, Office T08-51