PD Dr. Markus Pasche

The examination consists of several parts: there are 3 assignments (maximum score 20 each) during the semester and a final written exam (maximum score 40). The scores of all assignments and the score of the exam are added and translated into a grade. 

In case of a fail, only those parts of the exam have to be repeated where points are less than 50%; the points of the other parts are preserved. 

If the first part of the examination is due within the usual registration period of the examination regulations, the special regulations issued by the examination board apply for the latest possible registration and deregistration before the first partial performance.

to be announced

English

021 M.Sc. Betriebswirtschaftslehre, 684 M.Sc. Economics, 276 M.Sc. Wirtschaftsmathematik, 181 M.Ed. Wirtschaftspädagogik: Wahlpflichtmodul

Lecture (2 h per week), Exercise (2 h per week)

Typology of financial assets and financial markets; Theory of interest rate, i.e., risk structure and term structure; Principles of banking: managing risk, return, liquidity, and solvency; Agency problems in financial markets (adverse selection, moral hazard); Monetary aggregates, money supply process and demand of money; Goals and strategies of central banking, transmission of monetary policy, inflation targeting

• Students are familiar with different types of financial assets (debt-type, equity-type).
• Students know stylized balance sheets of banks and can explain the various managements tasks of banks (risk, return, liquidity, solvency), including Portfolio and Value at Risk Approach.
• Students have a theoretical comprehension of nominal and real interest rates, their risk and term structure. They are able to interpret risk spreads and Yield Curves (with empirical data).
• Students can explain how principal-agent problems emerge in financial contracts and how they can be solved or mitigated.
• Students can distinguish different forms of monetary aggregates. They can explain how money is created in a reserve banking system, and how the central bank influences this process. They can explain the main determinants of money demand.
• Students are able to explain why inflation is a concern, how monetary policy is transmitted via various channels in order to control inflation, and why central bank independence might be useful. They can explain the function of different monetary policy tools (including unconventional measures).
• In the assignments they apply their knowledge in different contexts, check theoretical arguments by using empirical data, and develop a concise and coherent argumentation in their written answers.