Course Code AcFn 341

Course Title Financial Institutions and Markets

Degree Program BA Degree in Accounting and Finance
Prerequisites Co requisite with ACFN 331
Status of the Course Major
Credit Hours 3
Course Objectives & This course provides students the essential knowledge required to
Competences to be understand the nature and role of the financial system in the
Acquired economy and the characteristics and operations of the major
financial institutions.
Course Description Financial markets and institutions channel trillions of dollars
through the economy, affecting business and consumer decisions and
the economic wellbeing of foreign countries. The purpose of this
course is to guide students in developing critical thinking skills as
applied to financial markets and institutions. Topics include the
financial system in perspective; financial assets, money and financial
transactions; financial institutions in the financial system; interest
rates in the financial system, interest rates in the financial system,
financial markets in the financial system, the regulation of financial
markets and institutions, and overview of Ethiopian financial system.
WEEKS Course Contents
1. An Overview of the Financial System.
2WEEKS 1.1. The role of financial system in the economy
{1ST&2ND } 1.2. Financial assets: role and properties
1.3. Financial markets: role, classifications and participants
1.4. Lending and borrowing in the financial system
2. Financial Institutions in the Financial System
4 WEEKS 2.1. Financial institutions and capital transfer
{3RD ,4TH ,5TH&6TH } 2.2. Functions of Financial Institutions
2.3. Financial intermediaries and their roles
2.4. Classifications of Financial Institutions
2.5. Depository financial institutions.
2.6. Non-depository institutions.
2.7. Risks in Financial Industry
3. Interest rates in the Financial System
2 WEEKS 3.1. The theory and structure of interest rates
{7TH&8TH } Factors affecting structure of interest rate determinations
4. Financial Markets In The Financial System
2 WEEKS 4.1. Organization and Structure of Markets
{9TH&10TH }
4.2. Primary and secondary market
4.3. Money Market
4.4. Capital Market
4.4.1. Debt Market
4.4.2. Equity Market
4.5. Foreign Exchange Markets
4.6. The Derivative Market
5. The Regulation of Financial Markets and Institutions
2 WEEKS 5.1. Purpose of regulation
{11TH&12TH }
5.2. Nature of Financial System Regulation
5.3. The forms of regulation
5.4. Arguments regarding regulation
6. Overview Of Ethiopian Financial System
4 WEEKS 6.1. Financial Markets & Institutions In Ethiopia
{13TH,14TH , 6.2. Negotiable Instruments in Ethiopia
15TH&16TH } 6.3. Financial sector in Ethiopia
6.4. Regulation of financial sector in Ethiopia
Text and reference books Text Book:
 Frederick Mishkin, 1998. The Economics of Money,
Banking and Financial Markets 5th edition USA
Reference Books
 Fabozzi, Frank J, Franco Modigliani, Frank J. Jones. Financial
Institutions and Markets. 3rd Edition, USA
 Proclamations, Regulations, and Directives which govern the
financial sector
 Saunders, Anthony and Marcia Millon Cornett. Financial
markets and institutions
 Rose, Peter S. Money and capital markets: The financial
system in an increasingly global economy. 5th Ed
Assessment/Evaluatio Test Test Test cases Project Final Total
n 1 2 3 work
10% 10% 10% 10% 20% 40% 100%
Teaching & Learning The teaching and learning methodology include lecturing,
Methods/strategy discussions, problem solving, and analysis. Take-home assignment
will be given at the end of each chapter for submission within a
week. Solution to the assignments will be given once assignments
are collected. Cases with local relevance will also be given for each
chapter for group of students to present in a class room. The full
and active participation of students is highly encouraged.