5L5Z0053: Show a basic understanding of financial markets: Economics of Money & Banking

Unit Learning Outcomes (LOs):

1.  Show a basic understanding of financial markets by describing the components of financial markets and the different types of financial intermediaries.

2.  Provide an assessment of evolving definition and role of money and interest rates, as well as the pivotal role financial intermediaries play in the economy.

3.  Utilise behavioural economics concepts to demonstrate how the financial sector can cause macro-economic volatility

4. Describe the causes and consequences of 2007-2009 global financial crisis (GFC), identify gaps in current financial regulations and how they can be addressed with future regulatory changes.

 This is an individual essay worth 100% of the unit grade. The following key concepts need to be incorporated and addressed in the essay:

1.  Explain the key functions of money.

2. Evaluate whether the key cryptocurrencies meet all the functions of money as outlined in (1) above.

3.  With reference to money supply and money demand theory, assess the surge in the price of Bitcoin (and other cryptocurrencies) and comment on their sustainability.

4. Draw on Professor Nouriel Roubini’s work & view on cryptocurrencies and account for its merits and potential demerits.

5. Briefly explain the challenges posed to central banks by the wider use of cryptocurrencies