Financial market introduces students to the money and capital market environment in which business organizations operate. The module presents an overview of the financial system and its various components, including financial markets, instruments, and institutions.
On completion of this module students should demonstrate an understanding of a financial system, its operation and component parts; yield curve analysis, the term structure of interest rates, and exchange rate interaction; sources and types of business finance, short, medium and long term, domestic and overseas, and associate pricing formulae; the structure and operation of Malaysian financial institutions and markets; the major types of risk and the derivative products available to manage financial risk; the structure, functions and role of prudential supervision in the financial markets.
Topics include:
• The Financial System: Overview
• The Payment System
• Financial Institutions and Regulation
• Funds and Insurance
• Introductions to Financial Markets
• The Money Market
• The Capital Market
• The Foreign Exchange & Capital Market
• Interest Rate Determination:
• Term and Risk Structure of Interest rate
• Derivatives Markets and Risk Management

Action Learning. Learning is achieved by engaging students in activities that have elements of problem solving combined with intentional learning.

Authentic Learning. Students will be presented with activities that are framed around "real life" contexts in which students will find learning more meaningful and motivating. Thus they will be more engaged in the process of acquiring knowledge.

Assessment strategy will be both formative and summative. Formative assessment strategies are used to test the current level of understanding and progress and to provide feedback to teacher and learner and to guide the next phase of learning. Types of formative assessments for this course will be discussions on tutorial questions, short quizzes and assignments. Summative assessment is used both in the mid and at the end of the programme formally to assess a learner’s skill, knowledge and understanding gained in this course.

For this module formative assessment will be undertaken through regular completion of tutorial work along with quizzes to check knowledge and understanding of basic concepts within accounting. To prepare students for the end of module summative exam, a mid semester test will take place under exam conditions.

Individual Assignment (1500 words),based on all learning outcomes - 50%
Learning outcomes 1, 3 & 5.

Final Examination (duration 1 Hour). This will be a closed book exam all learning outcomes - 50%
Learning outcomes 1, 2, 3, 4 and 5.

BUV VLE

Main Texts:
Pilbeam K (2005): Finance and Financial Markets, 3rd Edition, MacMillan

Additional Texts:
Bailey R E (2005): The Economics of Financial Markets, Cambridge University Press, FT.
Bacha, O.I. (2006) Financial Derivatives: Markets and Applications in Malaysia, 2nd edition, McGraw-Hill

1. DISCUSS THE STRUCTURE AND OPERATION OF FINANCIAL INSTITUTIONS AND MARKETS IN VIETNAM
Knowledge and Understanding, Learning

2. EXPLAIN GOVERNMENT MONETARY POLICY AND THE TERM STRUCTURE OF INTEREST RATES
Knowledge and Understanding, Application

3. EVALUATE SHORT AND MEDIUM TO LONGER TERM FINANCIAL INSTRUMENTS
Analysis, Problem Solving

4. ANALYSE THE DERIVATIVE PRODUCTS AVAILABLE TO MANAGE FINANCIAL RISK
Analysis, Application

5. APPLY COMPUTER SOFTWARE PACKAGES FOR ANALYSING ISSUES RELATING TO MONEY AND BANKING
Application, Analysis, Communication