Professional Documents
Culture Documents
2011/2012
GENERAL INFORMATION
Classes on:
Office times:
Mondays: 11 a.m. 1 p.m. Wednesdays: 3 p.m. 5 p.m. Please always check on the Internet for changes (Avvisi). Write to lucia.poletti@unipr.it to make an appointment on other days. Office on the first floor , Sezione Finanza Banca e Assicurazioni.
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We will spend considerable time discussing financial institutionsthe corporations, organizations, and networks that operate the so-called marketplaces. Banks and other financial institutions play a crucial role in improving the efficiency of the economy.
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When particular conditions occur, people (in particular poor people) may be excluded from the mainstream financial system. Lack of funds due to financial exclusion prevents small entrepreneurs from taking up opportunities offered by economic activities. Microfinance institutions provide financial services that allow people to save and invest in small businesses. Microfinance is widely used in development programs of international bodies and is heavily financed by donors. Microfinance does not work everywhere: it is important 6 to understand why.
In the first part of the course we will describe what a financial system is:
How does it work? What is the role of financial intermediaries? What is a market? What is the role of financial regulation? Why is the financial system particularly important to the whole economy? Textbook: Mishkin-Eakins
The second part of the course focuses on microfinance, a specific segment of the financial system.
What is microfinance? Why do we need it? In which countries can we find it? Does it really contribute to reducing poverty? Can it be a good investment? Textbook: Aghion-Morduch
ASSESSMENT
Non-attending students are only allowed to take the written exam (for up to 30 marks).
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ASSESSMENT
If you are an attending student and choose the Exam+Presentation option you have to:
Take a written exam (on the whole program) that counts for up to 25 marks. Give a presentation that counts for up to 5 marks. The presentation involves group work on a specific topic. For group work you will have 2 lessons. The final total mark is the sum of the two partial scores (ex.: 24+2=26). You can fail the exam in two cases:
If your final total mark is below 18 (ex.: 15+1=16). Or If you score less than 15 (out of 25) in the written exam. In this case you will fail the exam regardless of the score in your presentation. In order to pass the exam, you must gain at least 15 out of 25 in the 10 written exam (ex.: 13+5=18fail).
Groups of 4-5 people will be formed. Each group will choose a topic and prepare a presentation divided into 4-5 sections (according to the number of group members). Each group member will present his/her section (5 minutes per person). Each group members presentation will be assessed individually. The assessment will be based on the following items:
Are the structure and the objectives of the individual presentation clear? Are the structure and the objectives of the group work clear? Are the different parts well coordinated and organized? Considering the time available, has the topic been adequately dealt with?
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- Pension funds. Pension schemes come in many forms and are run by both the State and private sector. What are the characteristics of pension schemes in some of the main European countries? What is the role of pension funds?
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- Venture capital companies. Many start-ups or rapidly growing small companies find it difficult to raise finance from banks because they cannot provide sufficient asset security and are often regarded as high risk. What is the role of venture capital companies in some of the main European countries? What are their main activities?
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- Behavioural finance The field of behavioural finance seeks to explain why and how financial markets can be inefficient by bringing in insights from human psychology to explain the behaviour of financial market participants. What are the main findings of behavioural finance studies?
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- Forecasting interest rates Review information about the credit market in a recent issue of the Wall Street Journal and identify the factors that are given attention because they may affect future interest rate movements. Then create your own forecasts as to whether interest rates will increase or decrease in the next six months
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