Bang College of Business (BCB) Department of Accounting & Finance Spring Semester 2013 Course Syllabus for: FIN3101

Financial Institutions and Markets ___________________________________________________________________________ 1. Basic Information Course Code and Title: FIN3101 Financial Institutions and Markets Course Meeting Time and Place: Section 1: 10:00 11:15 (Tuesday & Thursday) in Hall #2/ New Academic Bldg. Section 2: 11:30 12:45 (Tuesday & Thursday) in Hall #1/ New Academic Bldg. Course Credit: Three (3) credits Instructor Information: Instructor: Aiman Issayeva, MSc, CFA Office: Room #214a, Dostyk (Administrative) Building Phone: 2 70 44 40 x 2357 E-mail: aiman_i@kimep.kz 2. Instructor Availability: Office Hours: 10:00 12:00 (Monday & Wednesday) Also available on Tuesday, Thursday and Friday by prior email appointment only. 3. Course Description/Overview Learning objectives The purpose of the course is to introduce the basic concepts and vocabulary relating to the operation of the financial system, to explore the fundamentals of interest rates and to examine the regulatory environment affecting financial institutions. The course introduces an overview to financial systems in general as well as in Kazakhstan. At the end of the course, students should be able to do the following: KNOWLEDGE Have general understanding of financial institutions and markets Understand the concepts of risk and return, and the trade-off between risk and return Understand how change in interest rates affects investment return Understand impact of monetary policy on interest rate changes, currency exchange rate etc. Understand the basic principles of forward rates, forward exchange rates etc. Get the principles of money markets, bond market, stock market and mortgage markets Understand how sustainability/ESG (economic, environmental, social & governance) issues and ethical standards affect investment decisions made by participants of the financial markets (institutional investors, corporate lenders, insurance companies, hedge funds and corporations).
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SKILLS Be able to calculate the annualized return on a security Calculate present value of annuity Use bond valuation and equity valuation formulas covered in the course Estimate % change and direction of change in exchange rates APPLICATION ABILITIES: Students will be able to apply knowledge and skills mentioned above to other courses in finance, as well as personal and business situations. Application abilities are developed through extensive problem-solving at the end of each topic. VALUES AND ATTITUDES: Students practice KIMEP Core Values Academic honesty Respect for peers and instructors 4. Instructional Resources Required Textbook: Financial Markets and Institutions, F. Mishkin, S.G. Eakins, 7th edition Additional Readings: Will be assigned as necessary 5. Teaching Methodology

As a course, which introduces basic concepts in finance, this course will primarily rely on the instructor-led lectures, followed by the class discussions, and in-class problem-solving. The students will be assigned the homework, which will not be graded. But students will have opportunity to earn bonus points for participating in the class by explaining the problem solution.

6. Assessment Scheme (tentative) A students performance will be evaluated based upon the following criterion:
a. Random

quizzes (10%): To test students understanding of the material, to motivate them to read the assigned materials and assess their level of preparation to the class, up to 11 quizzes will be conducted during the semester. Two lowest scoring quiz grades (including missed quiz) will be dropped, and the remaining quiz grades will be used to calculate the average quiz grade, which will be used to determine students Quiz Grade, which contributes 10% towards the final grade points. Quizzes will be conducted randomly, without prior notice, at any time during the class session. Your attendance is highly encouraged.
b.Mid-Term

Exam 1 & 2 (25% each): These exams are designed to test your knowledge and understanding of the issues discussed in the classroom. Each exam will comprise some combination of essay/short answers, problems, and multiple-choice questions. No make-up exam will be administered except for conflicts with official university business or extreme emergencies. In case of the former, please notify me (at least) one week in advance of the exam. Under both situations, you are expected to provide appropriate written documentation. You will be notified of the exact date of the exam at least one week in advance.

c. Final

Exam (40%): The final exam is designed to test your comprehensive knowledge and understanding of the issues discussed in the classroom. It will comprise some combination of essay/short answers, problems, and multiple-choice questions. No makeup exam will be administered except for conflicts with official university business or extreme emergencies. In case of the former, please notify me (at least) one week in advance of the exam. Under both situations, you are expected to provide appropriate written documentation. Final exam schedule will be posted officially by the Registrar closer to the semester end. Continuous Assessment Exam 1 Exam 2 Quiz grade Final Assessment Comprehensive final exam TOTAL 60% 25% 25% 10% 40% 40% 100%

Bonus In addition to the above, the students may earn up to 10 points during the semester for problemsolving in class, and for working on the bonus assignments. Bonuses are limited to 10 points maximum. Bonus assignments (if any) will be announced and explained in the class, and only timely submission of such assignments will qualify for the bonus points. 8. Grading Scale Letter grades for the course will follow the same standards as specified in the Catalog. See the following table for grading scale: Letter grade A+ A AB+ B BC+ C CD+ D DF Numerical scale or percentile 90-100 85-89 80-84 77-79 73-76 70-72 67-69 63-66 60-62 57-59 53-56 50-52 Below 50

9. Course Policies and Instructors expectations of students

Students must attend the classes; there will be random check of attendance (see Assessment section for details). Academic honesty: We have a zero tolerance policy for academic dishonesty. Check the catalog for details.
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Cell phones: should be turned off at the beginning of the class, or put it on vibrate or silent mode (in case of emergency). Information dissemination: Information regarding this course and assignments will be given by the instructor during the class or can be found on the L-drive. Enrollment in the course constitutes an agreement with the terms and requirements in this syllabus.

Period-by-period Schedule (Tentative) Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Topics Why Study Financial Markets and Institutions Overview of the Financial System Understanding Interest Rates The Behavior of Interest Rates The Risk and Term Structure of Interest Rates Exam 1 The Money Markets The Bond Market The Stock Market. The Stock Market. // Ethics and Sustainability in Financial Markets. The Mortgage Markets Exam 2 The Foreign Exchange Market Structure of Central Banking Conduct of Monetary Policy: Tools, Goals and Targets Chapter 15 Chapter 9 Chapter 10 Main reading Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 11 Chapter 12 Chapter 13 Chapter 13, slides Chapter 14