Modiwl ABI-1102:
Money & Macroeconomics
Money & Macroeconomics 2024-25
ABI-1102
2024-25
Bangor Business School
Module - Semester 1
15 credits
Module Organiser:
Debbie Gilliland
Overview
• Provide the students with the principles of money and banking and the role money plays in the functioning of the macro economy. • To create an understanding among students of the functions, objectives, and operations of commercial banks. • Provide the students with the tools and analysis related to money creation, monetary policy, and its instruments, and how these relate to interest rates and the price level.
Indicative Content:
• Principles of money and banking • An overview of the Financial System • Functions and forms of money • Demand for (and supply of) money • Operation and Management of Financial Institutions • Management and performance of deposits • Depository institutions and money supply • Central banking and monetary policy • Depository insurance, pension funds • Foreign Exchange Market and the International Financial System
Assessment Strategy
-threshold -D- to D+ (40-49%): No major omissions or inaccuracies in the deployment of information/skills. Some grasp of theoretical/conceptual/practical elements. Integration of theory/practice/information present intermittently in pursuit of the assessed work's objectives.
-good -B- to B+ (60-69%): Very good performance Most of the relevant information accurately deployed. Good grasp of theoretical/conceptual/practical elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Evidence of the use of creative and reflective skills.
-excellent -A- to A+ (70%+): Outstanding performance. The relevant information accurately deployed. Excellent grasp of theoretical/conceptual/practice elements. Good integration of theory/practice/information in pursuit of the assessed work's objectives. Strong evidence of the use of creative and reflective skills.
-another level-C- to C+ (50-59%): Much of the relevant information and skills mostly accurately deployed. Adequate grasp of theoretical/conceptual/practical elements. Fair integration of theory/practice/information in the pursuit of the assessed work's objectives. Some evidence of the use of creative and reflective skills.
Learning Outcomes
- Analyse the determination of interest rates, demand and supply of money in the money market.
- Apply macroeconomic concepts to perform calculations and interpret findings to analyze the interaction between key macroeconomic variables and their impact on commercial banks.
- Demonstrate an understanding of the principles of money and banking and how credit expansion leads to money creation.
- Explain the application of monetary policy and its instruments in the economy as part of central bank management of the financial system.
Assessment method
Coursework
Assessment type
Summative
Description
The project will require students to run a bank in a simulated banking environment. The software mimics a real-world financial market with a central bank and multiple banks competing for deposits and loans. Students will be assigned to a bank in teams and their primary objective is to increase net income and maximize the stock price of the bank. Students will then need to write a group report reflecting on the decisions they made in relation to the concepts they learnt in the course. The report will be graded per group while Reports should not be more than 2000 words long (+/- 10%); groups should not have more than 4 members. Marks in group assignments are allocated based on both individual contributions and the group's overall performance. Each member needs to specify their individual contribution to the project by identifying a specific task or responsibility that was carried out. The group's overall performance is assessed based on, among others: attainment of assignment objectives, flow between sections, overall presentation of the assignment, and quality of references used.
Weighting
40%
Assessment method
Exam (Centrally Scheduled)
Assessment type
Summative
Description
Students will take a closed book one-hour-long examination paper. The exam paper will consist of one section only, assessing primary and secondary concepts. Students will be required to answer three questions out of five possible questions. Each question will be broken down into several sub-questions. This will allow for the assessment of the candidates’ understanding of the theory, as well as their ability to perform the necessary calculations.
Weighting
60%