MINISTRY OF EDUCATION AND TRAINING SOCIALIST REPUBLIC OF VIETNAM

NATIONAL ECONOMICS UNIVERSITY Independence - Freedom - Happiness

------------------- -----------------------------------

COURSE SYLLABUS
(Issued attached Decision of NEU’s President, , , 2023)

Cours name : Monetary and Financial Theories – Program name : BACHELOR OF FINANCIAL
ECONOMICS

1. GENERAL INFORMATION:
 Title: Monetary and Financial Theories
 Course code: EP13.NHLT1107
 Credits: 3
 + Lecture: 30 hrs
 + Exercises on class: 10 hrs
 + Presentation and Discussion: 5 hrs
 + Exercise and discussion: 0 hrs
 + Field work: 0 hrs
 + Self-study: 90 hrs.
 * Parallel course(s): None
 * Prerequisite course(s): Macroeconomics; Accounting Princilpe
 * Department conducting the course:
 + Faculty:School of Banking and Finance
 + Department: Theory of Money and Finance Department
1
  + Lecturers:

LECTURERS’ INFORMATION
Department: Monetary and Financial Theories
Address: 909, Building A1, National Economics University.
Lecturers:
MSc. Phan Thu Trang Tel: Email: trangpt@neu.edu.vn
Dr. Danh Anh Tuan Tel: 0983 664485 Email: tuanda@neu.edu.vn

* Kind of the course:

Foundation  Fundamental ☐

Compulsory  Elective ☐ Compulsory ☐ Elective ☐

* Course language: In English

* Meeting hours: TBA, or by appointment

2. COURSE DESCRIPTION :
Monetary and Financial Theories is a course designed to provide students with an understanding of money, finance, banking, and financial markets and
institutions. The course is focused on the concept and functions of money, finance, financial system structure, players and financial instruments of
financial markets, financial intermediaries (i.e. commercial banks for the course), and interest rates. The other topics covered in this course are central
bank operations and the conduct of monetary policy.

3. LEARNING RESOURCES

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Course book:
 Frederic S. Mishkin, “The Economics of Money, Banking and Financial Markets”, Pearson, 11th Global edition, 2016.
Reference book:
 Eughen F. Bringham, Joel F. Houston, “Fundamental of Financial Management”, Cengage, 15th edition, 2019.

4. COURSE GOALS

Course Proficiency
Goal Description PLOs
Goals scale

Provide learners with concepts of money,

finance, understanding of the financial system,
G1 PLO2 III
the operations of financial markets and
financial institutions, and monetary policy.
Help learners to use foundation theories of
money and finance to analyze the behavior of
G2 interest rates, pricing of financial securities, PLO7 III
analyze the behavior of commercial banks and
central banks.
Learners should be able to understand and
analyze documents, articles, and reports in
G3 PLO11 III
economic and financial media and apply them
in their profession and work.

5. COURSE LEARNING OUTCOMES

3
Course Teaching
CLO Descriptions
goal level
CLO
Understand the concepts of money and finance IT3
1.1
CLO Understand the structure of financial systems and financial structure, financial markets and financial IT3
1.2 institutions, financial instruments
CLO IT3
G1 Understand the measurement of interest rates, the time value of money, the concept of risk and return
1.3
CLO IT3
Understand the operations of central banks, the money supply process, monetary policy, and tools
1.4
CLO IT3
Understand the roles and basic operations of financial intermediaries
1.5
CLO
Apply the theory of asset demand to explain investors’ behavior in financial markets TU3
2.1
CLO TU3
Analyze the operation of financial markets and financial institutions
2.2
CLO TU3
Using the time value of money and interest rates to calculate the price of bonds.
2.3
CLO TU3
G2 Apply the market equilibrium approach to analyze interest rate behavior
2.4
CLO Analyze (i) the functions, and roles of central banks (ii) multiple deposit creation and factors that TU3
2.5 determine the money supply, (iii) monetary policy targets, conventional and unconventional tools
CLO Analyze banks’ operations and principles of bank management TU3
2.6
CLO Understand the operation of non-bank financial institutions TU3
2.7
G3 CLO 3 Students should be able to read and understand economic and financial journal articles that make use of the U2
4
 concepts and methods presented in the course.

6. COURSE ASSESSMENT

* Assessment methods:
- Grading: 10
- Average score of course is the total points of rubrics multiplied by the respective weight of each rubric
* Assessment summary:

Table 6. Assessment summary

Weighting
Assessments Rubrics CLOs Week
(%)

Formative assessment

Participant Rubric 1 10% 1-15

Midterm assessment
1.1, 1.2,
1.3, 2.1,
Midterm exam (2 midterm exams) Rubric 2 40% 7, 12
2.3, 2.4
1.5, 2.6, 2.7
Summative assessment

5
 Weighting
Assessments Rubrics CLOs Week
(%)

1.3, 1.4,
University
Final exam Rubric 3 1.5, 2.4, 50%
schedule
2.5, 2.6, 2.7

6
 * Rubrics:
Rubric 1: Participant

Areas of Weighting Excellence Good Fair Poor

assessment (%) 8.5 – 10 point 6.5 – 8.4 point 4.0 – 6.4 point 0 – 3.9 point
Attendance 50 Attend class on Ten minutes 30 minutes late. Did not
time. Attended late. Attended The student attend classes
at least 90% of at least 80% of leaves once for or was
classes. classes a short significantly
emergency. late.
Attended at Attended less
least 60% of than 50% of
classes classes

Behavior 50 The student The student The student For the

always followed mostly followed mostly followed majority of
the teacher's the teacher's the teacher's the period,
directions and directions and directions and the student
classroom rules. classroom rules. classroom rules. did not follow
The student has The student any teacher's
to be redirected has to be directions or
at least once. redirected classroom
twice. rules.

Rubric 2: Midterm test

(Mid-term tests include
7
 multiple choice questions)

Areas of Weighting Excellence Good Fair Poor

assessment (%) 8.5 – 10 point 6.5 – 8.4 point 4.0 – 6.4 point 0 – 3.9 point
Multiple 100% Scored Scored Scored correctly Scored
choice correctly on correctly on on more than correctly on
questions more than more than 45% less than 45%
85% 65%

Rubric 3: Final exam

(Final exam includes calculation
problems and essay questions)

Areas of Weighting Excellence Good Fair Poor

assessment (%) 8.5 – 10 point 6.5 – 8.4 point 4.0 – 6.4 point 0 – 3.9 point
Calculation 50 Provided Provided Provided Skipped some
problems accurate accurate accurate problems or
solutions to all solutions to solutions to provided
problems most problems some problems inaccurate
or a few solutions to
problems most problems

Essay 50 Gave detailed Gave detailed Gave limited or Gave poor

questions and insightful responses to unclear responses to
responses to most essay responses to most essay
all essay questions. some essay questions.
questions. Supporting questions. Supporting
Supporting evidence is Supporting evidence is
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 Areas of Weighting Excellence Good Fair Poor
assessment (%) 8.5 – 10 point 6.5 – 8.4 point 4.0 – 6.4 point 0 – 3.9 point
evidence is sufficient and evidence is vague or
convincing, accurate. Well insufficient. missing. Poorly
accurate, and written Writing is written
detailed. Well unclear
written with a
clear focus

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7. COURSE OUTLINE

Readings Teaching and Learning Assessment tools and

Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
Chapter 0 Introduction Mishkin, Chap. 3 Lectures: the concept of Criteria: Attendance,
Chapter 1 What Is Money? money and its functions Behavior
1.1 Meaning of Money Tools: Rubric 1
In-class exercises: End of
1.2 Functions of Money Method: Attendance
chapter questions and
1 1.3 Evolution of the Payments System 1.1 Check
Problems.
1.4 Measuring Money
In-class discussions: compare
functions of money, compare
money with Bitcoin, discuss
different types of money
2-3 Chapter 2 An Overview of the financial Mishkin, Chap. 2 1.2 Lectures: functions and Criteria: Attendance,
system structure of financial markets, Behavior
2.1 The function of Financial Markets financial institutions. Tools: Rubric 1
2.2 Structure of Financial Markets Method: Attendance
In-class exercises: End of
2.3 Financial Market Instruments Check
chapter questions and
2.4 The function of Financial Problems.
Intermediaries In-class discussions: financial
2.5 Types of Financial Intermediaries instruments and types of
2.6 Regulation of the Financial System financial institutions. Role of
10
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
Information in financial
markets and the Role of
Government
Mishkin, Chap. 4 Lectures: calculate interest
Chapter 3 the Meaning of Interest Rates rate, return, present value,
3.1 Measuring Interest Rates and bond price. Criteria: Attendance,
3.2 Time value of money In-class exercises: End of Behavior
4 3.3 The Distinction Between Interest Rates 1.3 chapter questions and Tools: Rubric 1
and Returns Problems. Method: Attendance
3.4 The Distinction Between Real and In-class discussions: role of Check
Nominal Interest Rates interest rate in investment,
financial scams
Chapter 4 the Behavior of Interest Rates Mishkin, Chap. 5 Lectures: theory of asset Criteria: Attendance,
4.1 Determinants of Asset Demand demand, market for bond, and Behavior
4.2 Supply and Demand in the Bond Market market for money Tools: Rubric 1
4.3 Supply and Demand in the Market for Method: Attendance
1.3, 2.1, In-class exercises: End of
5-6 Money Check
2.3, 2.4 chapter questions and
4.4 Money and Interest Rates Problems.
In-class discussions: role of
money supply and interest
rate
7-8 Midterm test 1

11
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]

Chapter 5 Introduction to finance and Bringham, Chap. Criteria: Attendance,

Lectures: the concept of
financial management 1, 8 Behavior
finance and the impact of
5.1 What is finance? Tools: Rubric 1
forms of business on the risk
5.2 Forms of business Method: Attendance
of the type of investment;
5.3 The main financial goal Check
calculate risk and return in the
5.4 Risk and return context of a single asset and a
5.5 Risk in a portfolio context 1.1, 1.3
portfolio.
5.6 The relationship between risk and rates
In-class exercises: End of
of return
chapter questions and
Problems.
In-class discussions: the goal
of financial management.
Chapter 6 Banking and the Management of Mishkin, Chap. 9 Lectures: Bank operations,
Financial Institutions management of credit risk,
Criteria: Attendance,
6.1 The Bank Balance Sheet and interest rate risk
Behavior
6.2 Basic Banking In-class exercises: End of
9-10 1.5, 2.6 Tools: Rubric 1
6.3 General Principles of Bank Management chapter questions and Method: Attendance
6.4 Managing Credit Risk Problems. Check
6.5 Managing Interest-Rate Risk In-class discussions: Risks in
6.6 Off-Balance-Sheet Activities banks’ operation.
12
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
Chapter 7 Non-bank institutions Mishkin, Chap. On Lectures: basic operations, Criteria: Attendance,
7.1 Insurance the Web 2 major source and use of funds Behavior
7.2 Pension funds by non-bank institutions Tools: Rubric 1
7.3 Finance companies Method: Attendance
In-class exercises: End of
11 7.4 Securities market operations 1.5, 2.7 Check
chapter questions and
7.5 Mutual funds Problems.
7.6 Venture capital In-class discussions: role of
every institution in the
financial system.
Midterm test 2 1.1, 1.3, Tools: Rubric 2
12 1.5, 2.6, Method: Microsoft
2.7 Form
12 Chapter 8 Introduction to the central bank Mishkin, Chap. 14 1.4, 2.5 Lectures: Origin, functions, Criteria: Attendance,
8.1 Origins of the Federal Reserve System and operations of the central Behavior
8.2 Structure of the Federal Reserve System bank. Tools: Rubric 1
8.3 Structure and Independence of the Method: Attendance
In-class exercises: End of
European Central Bank Check
chapter questions and
8.4 Central Banks Round the World Problems.
In-class discussions: How are
Central banks different from
commercial banks and why
they are so economically

13
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]

Chapter 9 The money supply process
9.1 Three Players in the Money Supply
Process
9.2 The Fed’s Balance Sheet
9.3 Control of the Monetary Base
9.4 Multiple Deposit Creation: A Simple
13
Model
9.5 Factors That Determine the Money
Supply
14 Chapter 10 Monetary policy
10.1 Goals of Monetary Policy
10.2 The Market for Reserves and the
Federal Funds Rate
10.3 Conventional Monetary Policy Tools
10.4 Nonconventional Monetary Policy
Tools and Quantitative Easing
10.5 The Conduct of Monetary Policy:
Strategy and Tactics
powerful?
Mishkin, Chap. 15 Lectures: Illustrate how can a Criteria: Attendance,
central bank affect the Behavior
reserves of the banking Tools: Rubric 1
system and the process of Method: Attendance
money supply creation: simple Check
and complete model.
2.5
In-class exercises: End of
chapter questions and
Problems.
In-class discussions: Explain
the behavior of players in the
money supply process.
Mishkin, Chap. 2.5 Lectures: the markets for Criteria: Attendance,
16,17 Banks’ Reserves and monetary Behavior
policy tools; Strategies and Tools: Rubric 1
Tactics in monetary policy Method: Attendance
implementation. Check
In-class exercises: End of
chapter questions and
Problems.
In-class discussions: Goals of

14
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
monetary policy and the
central bank’s dilemma in
action.
Criteria: Attendance,
Behavior
Lectures:
15 Review and consolidation Tools: Rubric 1
In-class discussions: Method: Attendance
Check

Students take exams Rubric 3

- Final exam according to the university’s Paper-based, in-class
schedule exam

8. LESSON PLAN

Table 8.1. Lesson plan for the course

Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
1 Chapter 0 Introduction Mishkin, Chap. 3 1.1 Lectures: the concept of Criteria: Attendance,
Chapter 1 What Is Money? money and its functions Behavior
1.1 Meaning of Money
15
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
1.2 Functions of Money In-class exercises: End of Tools: Rubric 1
1.2.1. Medium of exchange chapter questions and Method: Attendance
1.2.2. Unit of account Check
Problems.
1.2.3. Store of value
1.3 Evolution of the Payments System In-class discussions: compare
1.4 Measuring Money functions of money, compare
money with Bitcoin, discuss
different types of money
2-3 Chapter 2 An Overview of the financial Mishkin, Chap. 2 1.2 Lectures: functions and Criteria: Attendance,
system structure of financial markets, Behavior
2.1 The function of Financial Markets financial institutions. Tools: Rubric 1
2.2 Structure of Financial Markets Method: Attendance
In-class exercises: End of
2.2.1. Debt and equity markets Check
chapter questions and
2.2.2. Primary and secondary markets Problems.
2.2.3. Exchange and over-the-counter markets In-class discussions: financial
2.2.4. Money and capital markets instruments and types of
2.3 Financial Market Instruments financial institutions. Role of
2.3.1. Money market instruments Information in financial
2.3.2. Capital market instruments markets and the Role of
2.4. The function of Financial Government
Intermediaries Analysis of recent IPO
2.4.1. Reduce transaction cost
2.4.2. Risk sharing

16
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
2.4.3. Deal with asymmetric information
2.5. Types of Financial Intermediaries
2.5.1. Depository institutions
2.5.2. Contract saving institutions A recent Case of stock market
2.5.3. Investment intermediaries manipulation in Vietnam
2.6. Regulation of the Financial System
Chapter 3 the Meaning of Interest Rates Mishkin, Chap. 4
Lectures: calculate interest
3.1 Measuring Interest Rates
rate, return, present value,
3.2 Time value of money
and bond price. Criteria: Attendance,
3.2.1. Present value
In-class exercises: End of Behavior
3.2.2. Yield to maturity and bond price
4 1.3 chapter questions and Tools: Rubric 1
3.2.3. Measuring interest rate risk: Duration
Problems. Method: Attendance
3.3 The Distinction Between Interest Rates
In-class discussions: role of Check
and Returns
interest rate in investment,
3.4 The Distinction Between Real and
financial scams
Nominal Interest Rates
5-6 Chapter 4 the Behavior of Interest Rates Mishkin, Chap. 5 1.3, 2.1, Lectures: theory of asset Criteria: Attendance,
4.1 Determinants of Asset Demand 2.3, 2.4 demand, market for bond, and Behavior
4.1.1. Wealth market for money Tools: Rubric 1
4.1.2. Expected return Method: Attendance
In-class exercises: End of
4.1.3. Risk Check
chapter questions and
4.1.4. Liquidity Problems.

17
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
4.2 Supply and Demand in the Bond Market
4.2.1 Demand for bond
4.2.2 Supply of bond
In-class discussions: role of
4.3 Supply and Demand in the Market for
money supply and interest
Money
rate
4.3.1 Demand for money
4.3.2 Supply of money
4.4 Money and Interest Rates
7-8 Midterm test 1 1.1, 1.2, Tools: Rubric 2
1.3, 2.1, Method: Microsoft
2.3, 2.4 Form

Lectures: the concept of

Chapter 5 Introduction to finance and
Bringham, Chap. 1.1, 1.3 finance and the impact of Criteria: Attendance,
financial management
1, 8 forms of business on the risk Behavior
5.1 What is finance?
of the type of investment; Tools: Rubric 1
5.1.1 Areas of finance
calculate risk and return in the Method: Attendance
5.2 Forms of business
context of a single asset and a Check
5.3 The main financial goal
portfolio.
5.4 Risk and return
In-class exercises: End of
5.4.1 Measuring risk
chapter questions and
5.5 Risk in a portfolio context
Problems.
5.6 The relationship between risk and rates
In-class discussions: the goal
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 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
of return of financial management.
Chapter 6 Banking and the Management of Mishkin, Chap. 9
Financial Institutions
6.1 The Bank Balance Sheet
Lectures: Bank operations,
6.2 Basic Banking
management of credit risk,
6.3 General Principles of Bank Management Criteria: Attendance,
and interest rate risk
6.4 Managing Credit Risk Behavior
9-10 6.4.1 Screening and monitoring 1.5, 2.6 In-class exercises: End of Tools: Rubric 1
chapter questions and Method: Attendance
6.4.2 Longterm customer relationship
Problems. Check
6.4.3 Collateral
In-class discussions: Risks in
6.4.4 Credit rationing
banks’ operation.
6.5 Managing Interest-Rate Risk
6.5.1 Gap analysis
6.6 Off-Balance-Sheet Activities
11 Chapter 7 Non-bank institutions Mishkin, Chap. On 1.5, 2.7 Lectures: basic operations, Criteria: Attendance,
7.1 Insurance the Web 2 major source, and use of Behavior
7.2 Pension funds funds by non-bank institutions Tools: Rubric 1
7.3 Finance companies Method: Attendance
In-class exercises: End of
7.4 Securities market operations Check
chapter questions and
7.4.1 Securities companies Problems.
7.4.2 Exchange In-class discussions: role of
7.5 Mutual funds every institution in the

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 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
7.5.1 Hedge fund
7.6 Venture capital

financial system.

Midterm test 2 1.1, 1.3, Tools: Rubric 2

12 1.5, 2.6, Method: Microsoft
2.7 Form
Chapter 8 Introduction to the central bank Mishkin, Chap. 14 Lectures: Origin, functions, Criteria: Attendance,
8.1 Origins of the Federal Reserve System and operations of the central Behavior
8.2 Structure of the Federal Reserve System bank. Tools: Rubric 1
8.2.1 Board of Governors Method: Attendance
In-class exercises: End of
8.2.2 The FOMC Check
chapter questions and
12 8.3 Structure and Independence of the 1.4, 2.5 Problems.
European Central Bank In-class discussions: How are
8.4 Central Banks Round the World Central banks different from
commercial banks and why
they are so economically
powerful?

20
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
Chapter 9 The money supply process Mishkin, Chap. 15 Criteria: Attendance,
Lectures: Illustrate how can a Behavior
9.1 Three Players in the Money Supply
central bank affect the Tools: Rubric 1
Process
reserves of the banking Method: Attendance
9.1.1 Central bank
system and the process of Check
9.1.2 Commercial banks
money supply creation: simple
9.1.3 Depositors
and complete model.
13 9.2 The Fed’s Balance Sheet 2.5
In-class exercises: End of
9.3 Control of the Monetary Base
chapter questions and
9.4 Multiple Deposit Creation: A Simple
Problems.
Model
In-class discussions: Explain
9.5 Factors That Determine the Money
the behavior of players in the
Supply
money supply process.
9.5.1 The Money Multiplier
14 Chapter 10 Monetary policy Mishkin, Chap. 2.5 Lectures: the markets for Criteria: Attendance,
10.1 Goals of Monetary Policy 16,17 Banks’ Reserves and monetary Behavior
10.2 The Market for Reserves and the policy tools; Strategies and Tools: Rubric 1
Federal Funds Rate Tactics in monetary policy Method: Attendance
10.3 Conventional Monetary Policy Tools implementation. Check
10.4 Nonconventional Monetary Policy In-class exercises: End of
Tools and Quantitative Easing chapter questions and
10.5 The Conduct of Monetary Policy: Problems.
Strategy and Tactics In-class discussions: Goals of

21
 Readings Teaching and Learning Assessment tools and
Week Content CLO
requirement Activities criteria
[1] [2] [3] [4] [5] [6]
10.5.1 The Price Stability Goal and the
Nominal Anchor.
monetary policy and the
10.5.2 Inflation Targeting
central bank’s dilemma in
10.5.3 Tactics: Choosing the Policy
action.
Instrument
10.5.4 Tactics: The Taylor Rule
Criteria: Attendance,
Behavior
Lectures:
15 Review and consolidation Tools: Rubric 1
In-class discussions: Method: Attendance
Check
1.3, 1.4,
Students take exams Rubric 3
1.5, 2.4,
- Final exam according to the university’s Paper-based, in-class
2.5, 2.6,
schedule exam
2.7

9. COURSE REQUIREMENTS & EXPECTATIONS

9.1. Requirements for taking final /terminal exams
 Students are allowed to take the final exam if their attendance score reaches 5 points or more (on the scale of 10).

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9.2. Requirements for attending classes
 Students are responsible for attending all classes. In case of absence from school due to force majeure reasons, sufficient and
reasonable proofs must be provided. For each absence, 1 point will be deducted 1 point. Students who miss any classes more than
3 times, with or without reason, will be considered as failing to complete the course and have to re-register.
 Students will be awarded points for constructive comments these points are added to attendance points and group assignments.
 Groups who do not submit the group work will receive a score of 0 (zero). Late submissions will be deducted for each day of late
submission.
9.3. Requirements for in-class behaviour
 The course is conducted on the principle of respecting learners and lecturers. Any behaviour that affects the teaching and learning
process is strictly prohibited.
 Students must come to class on time. Students who are late more than 10 minutes after class starts will not be allowed to attend
the class. Do not make noise and affect others during the learning process.
 Laptops and tablets are only used for the purpose of taking notes for and calculating for lectures and exercises, absolutely
forbidden to use for other purposes.

Faculty Dean NEU’s President

Prof. Pham Hong Chuong

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