Financial markets play a fundamental role in a modern economy. In this unit of study we analyse how financial markets function, with a particular focus on: the factors underlying demand and supply; risk and uncertainty; incomplete contracts and renegotiation; and asymmetric information and its implications. In doing so, we identify the key features of markets for financial assets. The unit also examines the development of financial institutions and current issues in financial markets.
1x1.5hr mid-semester exam (30%), 1x1000wd assignment (20%), 1x2hr final exam (50%)
ECON5001 or ECON5040