SYLLABUS

University: Technical University of Košice

Faculty: Faculty of Economics

Department: Department of Finance

Course Number: 35000350

Course Name: Finance and Currency

Type, scope and method of learning activities:
Course Type: Lecture, Numerical exercises
Recommended scope of the course content (in hours):
Full-time study (hours per week): 2,2
Part-time study (hours per semester): WT 26,26
Study Method:

Number of credits: 5

Recommended semester of study: WT

Recommended semester

Study programme

Study grade

Study Method

2.rok WT

Economics and Management of Public Administration (EaMVS_Bc_D_en)
Finance, Banking and Investment (FBI_Bc_D_en)

Bachelor
Bachelor

Attendance
Attendance

Level of study:

Prerequisites:

Course completion requirements:
Assessment and completion of the course: Credit test and examination
Continuous assessment: Student passes the continuous assessment and receives credits when he or she meets the requirement to obtain at least 13% out of 25%.
Continuous written assessment: during the semester, the student can get max. 25 points, of which max. 13 points for written credit control of the study (solution of theoretical tasks and practical examples); and a maximum of 12 points for defending a semester project focused on current topics in finance and currency.
Final assessment: Student passes the final assessment and passes the examination when he or she meets the requirement to obtain at least 38% out of 75%.
The final evaluation is carried out in a closed written exam, which consists of questions from the theoretical and practical parts. A maximum of 75 points can be obtained for the exam.
The overall evaluation of the course then consists of a continuous and final evaluation.

Overall assessment: Overall assessment is the sum of the assessments obtained by students in the assessment period. The overall result is determined in accordance with the internal regulations of the Technical University in Košice. (Study Regulations, the internal regulation principles of doctoral studies)

Learning outcomes:
The aim of the course is to teach students the basics of financial science and the relationship between financial and real economics. Lead them to understand the interrelationships between economic phenomena, subjects and processes.
After completing the course, the students:
(i) acquire theoretical knowledge of financial science, the financial system and financial institutions, and understand their interrelationships. In the monetary field, the student will gain professional knowledge about the development and issuance of money and money circulation, theories of supply and demand for money, inflation, the characteristics of monetary systems in the world, and the money markets,
(ii) deepen their skills in applying theoretical knowledge in the presentation and economic interpretation of the results of the seminar work and professional discussion.
(iii) By completing the course, the students will deepen their decision-making skills based on arguments resulting from the results of economic records analysis with the use and understanding of professional financial terminology. During the semester, they will improve their ability to communicate and convey the information obtained to a wider audience through communication and discussion.
The course uses classical logical learning methods (analysis, synthesis, induction, deduction), as well as modern teaching approaches: motivational methods, presenting current examples from practice, constructive criticism, and brainstorming. Project teaching, work with information sources, and home assignments are used from the exposure-fixation methods. We also apply diagnostic and classification methods to the subject in the form of oral verification of assignments and written examination.

Brief course content:
1. L: Introduction to the study of financial disciplines. Content and structure of finance. Economic categories of finance and currency. Objective part of finance (money supply, financial operations, money turnover).
E: Introduction to Finance and Currency. Organization of the course (conditions for granting credit, absences and compensation of exercises). Study literature. Moodle. Consultations.
2. L: Ways of changing the money supply. Subjective part of finance. Organization and management of primary financial activities. Secondary financial activities. Marginal components of finance. Financial science.
E: Money supply, financial operations and cash turnover. Characteristics of financial operations. Applications: examples of monetary operations.
3. L: Financial system and financial market I. Definitions and basic terminology. Structure and institutional organization of financial markets. Demand and supply in financial markets. Financial markets classification.
E: Financial system and financial market I. Definition of basic terms. Structure and institutional organization of financial markets. Demand and supply in financial markets. Financial markets classification.
4. L: Financial system and financial market II. Capital market and its instruments. The international financial market and its instruments.
E: Financial system and financial market. Models of allocation of financial resources on financial markets. Financial market and its instruments (bills of exchange, T-bills, certificates of deposit, commercial papers). Applications: money market instruments.
5. L: Cash and currency I. Theoretical and empirical approach to money. Methods of money quantification. Development and issuance of money.
E: Money and interest. Money as a storage of value. Time value of money (simple, compound interest, net present value). Interest rate.
6. L: Cash and currency II. Currency, its nature and characters.
E: Money supply. Microeconomic fundamentals of money supply. Deposit multiplication, financial multiplier. Factors affecting money supply.
7. L: Cash and currency III. Monetary aggregates and monetary base.
E: Monetary systems.
8. L: Exchange rate systems. Classification of exchange rate systems. Fixed exchange rate system. Flexible exchange rate systems. Advantages and disadvantages of exchange rate systems.
E: Exchange rate systems in the Central European countries. Theoretical definition of exchange rate systems. Stages in the development of exchange rate systems. Multiplier.
9. L: Exchange rates. Terminology, definitions. Ways of defining the central rate. Factors influencing exchange rate changes (Central Bank interventions on the foreign exchange market).
E: Ways of defining the central exchange rate. Currency basket method. Factors influencing exchange rate changes. International movement of goods and services, and capital. Exchange rate.
10. L: Theories of supply and demand for money. Neoclassical theories of money demand. Keynesian theories of money demand.
E: Current issues of monetary development. Presentation of seminar papers. Discussion on the presented topics.
11. L: Monetary unions. History of monetary unions. Monetary unions today. European monetary union.
E: Current issues of monetary development. Presentation of seminar papers. Discussion on the presented topics.
12. L: Interest rate. Development of interest rate opinions.
E: Interest rate theory (neoclassical theory, loan fund theory and liquidity preference theory): a comparison.
13. L: Current issues of monetary development. The economic situation in Slovakia and its comparison with the development in the EU
E: Consultations. Credits. Teaching satisfaction questionnaire. Replacement of missing exercises. Credit re-tests.

Recommended Reference Sources:
- Mishkin, F. S., Matthews, K., Giuliodori, M. (2013): The Economics of Money, Banking a Financial Markets, Pearson, 625 s., ISBN 978-0-273-73180-1.
- Ball, L. M. (2012): Money, Banking, and Financial Markets, 2nd ed., Worth Publishers, 588 s., ISBN-13: 978-1-4292-4409-1.
- Brealey, R., Myers, S., Allen, F. (2021): Principles of Corporate Finance, 13th ed., McGraw Hill, New York, 994 s., ISBN: 978-9-353-16364-8.
- Peterson Drake, P., Fabozzi, F. J. (2010): The Basics of Finance, John Wiley a Sons, 665 s., ISBN 978-0-470-60971-2.
- Madura, J. (2021): Financial Markets and Institutions, 13th ed., Cengage, Australia, Brazil, Mexico, Singapore, United Kingdom, United States, ISBN: 978-0-357-13079-7.
- Melicher, R. W., Norton, E. A. (2014). Introduction to Finance. Markets, Investments, and Financial Management, 15th ed., Wiley, 608 s., ISBN 978-1-118-80073-7.

Recommended optional program components:

Languages required for the course completion:

Notes:

Course assessment:
Total number of students assessed: 9

11%

22%

44%

Teacher:
doc. Ing. MVDr. Ján Buleca, PhD.

Last modified: 31.08.2023

Approved by: person(s) responsible for the study program