Minor Money and Banking

Broadening minor


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?

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

Students will be able to define and calculate:

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

Special aspects

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)

All RSM minors have mandatory attendance.

Overview content per week 

Week 1: The financial system and the economy
Week 2: Money and payments
Week 3: Interest rates
Week 4: Stocks and other assets
Week 5: Government’s role in banking
Week 6: How banks work
Week 7: Economic growth, business cycles & economic interdependence
Week 8: The reserve banking system
Week 9: Monetary control and monetary policy

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.

Teaching materials

  • Croushore D., M&B, 2007, Houghton Mifflin
  • Scientific publications


Method of examination

  • 7 weekly assignments for a max of 5 points each
  • Final written test (open questions for a max of 65 points)

There is no minimum number of points required for the assignments. There will only be a re-sit for the written test.

Composition of final grade
Max final grade = 7 x 5 pts + 65 pts = 10.0

In class feedback and Canvas

Contact information

Robin Dottling
+31 10 4082748 
room: T8-46 (Mandeville)

Broadening minor
Rotterdam School of Management, Erasmus University
Studiepunten (ECTS)
Campus Woudestein, Rotterdam


Please read the application procedure for more information.