BFIP025 - Economics for Banking and Finance

Module Code BFIP025
Semester Autumn
Prerequisite N/A
Level 11
Credit Value 10
Module Co-ordinator Dr Maria Grydaki 
Assessment 100% Coursework

MODULE INTRODUCTION, AIMS AND OBJECTIVES

The first half of this module introduces microeconomics. At the heart of every economy, consumers maximize their utility from the consumption of goods and firms maximize profits from the production of goods. In microeconomics, we focus on individual consumers and firms and analyse their demand and supply patterns when interacting in markets. 

The second half of the module provides an introduction to macroeconomics. Macroeconomics analyses the economy as a whole. This involves aggregate demand and aggregate supply. We study determinants of national output and its growth over time and try to find explanations for macroeconomic problems such as recession, unemployment, inflation and the balance of international payments. Finally, we discuss policies adopted by governments to deal with these problems.

The objectives are

  • To introduce students to economics as a discipline.
  • To develop a basic understanding of micro- and macro mechanisms driving the economy.
  • To focus on economic aspects most relevant for later modules and a career in banking business, or finance.

LEARNING OUTCOMES AND SKILLS DEVELOPED

Microeconomics:

  •  Consumers in the marketplace: the best price for a product given consumers’ reaction to price changes
  • Firms in the marketplace: how firms maximize their profits given factor input costs
  • Markets in action: Supply and Demand

 Macroeconomics:

  •  main macroeconomic goals that are generally of most concern to governments, such as economic growth, employment, inflation, and their relationship.
  • the policies adopted by government regarding taxation and spending and interest rates, and their relationship with national income
  • why international trade is usually good for a nation

RECOMMENDED READING LIST

The core text book for this module is:

Begg, D. and Ward, D., Economics for Business 5th ed., McGraw-Hill, 2016. (BW)

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