Money and Banking I
This module asks why banks exist, what they do, and looks at the relationships between the lender and the borrower and rationing in the banking sector.
This module explores banking concepts that are relevant to many countries around the world, such as the microeconomics of banking and financial contracts.
All of the resources for this module are available on the ELE (Exeter Learning Environment).
Students obtain a good understanding of banking theory, which is essential for employment in the banking sector. They also develop their numerical and problem-solving skills.
Full module specification
|Module title:||Money and Banking I|
BEE1029 or BEE1030
BEE2025 or BEE2024
|Duration of module:||
Duration (weeks) - term 1: |
The aims of this module are to undertake a detailed analysis of various topics in the fields of monetary economics, banking and finance. The approach is geared towards analysing simple models of economic problems, and towards illustrating the policy implications of these models, and how well the models' predictions explain the real world.
ILO: Module-specific skills
- 1. explain why banks exist
- 2. explain what are the advantages of debt over equity finance
- 3. explain what are the causes of a banking crisis
- 4. explain simple models of bank runs
- 5. explain how did regulation in the banking sphere change in response to managerial incentive problems
ILO: Discipline-specific skills
- 6. demonstrate analytical skills, specifically their ability to use mathematical models to analyse economic problems
ILO: Personal and key skills
- 7. demonstrate written communication skills, improving reasoning ability
Learning activities and teaching methods (given in hours of study time)
|Scheduled Learning and Teaching Activities||Guided independent study||Placement / study abroad|
Details of learning activities and teaching methods
|Category||Hours of study time||Description|
|5||Tutorials, weeks 2, 4, 6, 8, 10|
|Form of assessment||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Questions posted on ELE||2-4 questions||1-7||Discussed during tutorials, solutions posted online.|
Summative assessment (% of credit)
|Coursework||Written exams||Practical exams|
Details of summative assessment
|Form of assessment||% of credit||Size of the assessment (eg length / duration)||ILOs assessed||Feedback method|
|Final Exam||80||2 hours||1-7||Written feedback|
|Assignment||20||1200-2500 words||1-7||Notes on grading coversheet|
Details of re-assessment (where required by referral or deferral)
|Original form of assessment||Form of re-assessment||ILOs re-assessed||Timescale for re-assessment|
|Referred: Exam and Assignment||Exam 100% (2 hours)||1-7||August Examination Period|
|Deferred: Assignment||Assignment 20% (1200-2500 words)||1-7||July Reassessment Period|
|Deferred: Exam||Exam 80% (2 hours)||1-7||August Examination Period|
- What is a bank, and what do banks do?
- Why do financial intermediaries exist?
- Modelling the banking sector
- Lender-Borrower relationship
- Rationing in the credit market
Indicative learning resources - Basic reading
Greenbaum, Stuart I., and Anjan Thakor, (2007) Contemporary Financial Intermediation. New York, USA:Dryden Press.(O)
NOTE: (O) is an optional text
Module has an active ELE page?
Last revision date