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Economics and Finance Major

The interdisciplinary B.Sc. Hons programme in Economics and Finance will help students to understand the principles of economics and its applications to financial systems and organisations.

The department recommends that students complete mathematics in Classes 11 and 12 to be eligible for any economics-related major or minor.

For students who have not studied mathematics in Classes 11 and 12 to be eligible for any economics-related major or minor, they need to:

a) Take MAT 1000: Calculus (a 1000-level course) offered by the Mathematics department in their first semester and

b) Secure at least an A- to be eligible

In addition to quantitative techniques in mathematics and statistics, the curriculum will also include advanced financial techniques such as derivatives pricing, risk management and portfolio management.

Finance Courses

Introduction to Finance 

This is a compulsory course for Second-year students Majoring in Economics and Finance.

The aim of this course is to introduce students to a broad range of financial markets operating in a modern economy and to provide you with a basic understanding of these markets. At the end of the module, students should develop a basic awareness of the day-to-day workings of such markets and an informed understanding of key events, such as the recent financial crisis. The topics covered include the role and types of various financial markets; the role and function of financial institutions and their regulation; and the conduct of monetary policy. Various financial markets such as the bond markets, government as well as corporate bonds; the money markets; the stock markets; and the markets for financial futures and options will be covered. The role of central banks and other regulatory institutions in ensuing the smooth functioning of these markets will be explored.

Financial Markets and Asset Pricing

This is an elective course in Finance offered to the third years.

This course focuses on international financial markets and exchange rates. Topics include pricing in the foreign currency and Eurocurrency markets, use of forward exchange for hedging, short-term returns and market efficiency in the international money markets, foreign currency options, international capital asset pricing, pricing of foreign currency bonds, currency swaps, Eurocurrency syndicated loans, foreign currency financing and exposure management.

Managing Financial Institutions

This is an elective course in Finance offered to the third years.

What are financial institutions and why are they special? This course will introduce you to a range of different financial institutions (FIs) – banks, insurance companies and asset management companies – and the services they provide. Common to all FIs is the need to manage financial risk. In this course, we will analyse the different types of financial risk faced by FIs, understand the methods used to measure them, as well as the instruments and processes used to mitigate them. Finally, this course will cover the need for and the extent of regulation of FIs. In particular, we will focus on the financial crisis of 2008 and the changes to the global financial regulatory regime that have taken place as a result of it.

Advanced Financial Management

This is an elective course in Finance offered to the third years.

This is an applied finance course that tackles some of the common problems faced by corporate managers in business settings. Topics covered include project evaluation, capital structure theory, equity valuation, dividend policy, mergers and acquisitions, and equity issuance (IPOs and SEOs).

International Finance

This is an elective course in Finance offered to the third years.

This course will survey a variety of topics in international finance and open-economy macroeconomics. The stress will be on an understanding of the intuition behind the theories, not on mathematical proofs or on replicating empirical results from the literature. The course will not shy away from complex ideas but will try to make the ideas as accessible as possible. The course will address the following main topics: balance of payments, exchange rate determination in open economy models, parity relationships between spot and future exchange rates, risks in global finance (foreign exchange risk and country risk), the management of foreign exchange risk with forwards and options, term structure of interest rates, basic characteristics of trade finance and investment instruments and international capital flows.

Major Requirements

The foundation course requirements for this major are as given in the pure Economics major page. In addition, students pursuing this major need to complete 15 courses in economics and 4 courses in finance. The required 15 courses in economics are identical to those in the pure economics major.

Sample Curriculum Structure

Economics and Finance

Semester I Semester II Semester III Semester IV Semester V Semester VI
Introduction to Critical Thinking Foundation Course 4 Foundation Course 6 Foundation Course 8 Development Economics Economics Elective Course 4
Foundation Course 1 Foundation Course 5 Foundation Course 7 Econometrics Economics Elective Course 1 Economics Elective Course 5
Foundation Course 2 Introduction To Economics Microeconomics Theory I  Microeconomics Theory II Economics Elective Course 2 Economics Elective Course 6
Foundation Course 3 Mathematics for Economists Macroeconomics Theory I  Macroeconomics Theory II Economics Elective Course 3 Financial Elective Course 2
Statstics for Economists Introduction to Finance Financial Elective Course 1 Financial Elective Course 3

The above table is only a sample curriculum structure. There could be other possibilities, e.g. taking the 7th Foundation Course in 6th semester and taking three Economics electives in the 5th semester.

Study at Ashoka

Study at Ashoka