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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. One must have studied Mathematics in Classes 11 and 12 for pursuing this interdisciplinary major.

 

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

 

For the cohort of 2016-2019: in addition to the requirements for a pure Economics major, students will have to take four courses in Finance, of which Introduction to Finance is compulsory. The other three courses in Finance are elective courses that need to be chosen from a list of four: Financial Markets and Asset Pricing, Managing Financial Institutions, Advancing Financial Management and International Finance. In total, a student needs to take 28 courses over the span of three years: 24 courses needed for a pure Economics major and 4 Finance courses. The 24 courses for a pure Economics major include Foundation Courses and Critical Thinking Seminars, seven (7) compulsory Economics courses and the requisite number of elective courses in Economics which are offered in the 5th and 6th semesters. The number of elective courses one should take will depend on one's cohort (2015-2018 or 2016-2019) and the number of foundation courses and critical thinking seminars one is taking/ intends to take. For more information see the requirements for a pure Economics major.

 

The following is applicable ONLY for the cohort of 2016-2019: students who wish to do 2 Critical Thinking and 8 Foundation courses, can take either of the following courses in Spring Semester 2018 instead:

 

Introduction to Computer Programming (CS101): This course from computer science will be crosslisted with Economics and will be considered an economics elective only for the current academic year, 2017-2018.

 

Networks, Markets and Crowds: This is an Economics elective  course which may be taken in the second year for this academic year, that is, 2017-2018 only.

 

Please note that the above information is relevant for the students of the cohort of 2016-2019 pursuing their interdisciplinary major in Economics and Finance for the current academic year, 2017-2018 only.

 

 

For the cohorts of 2017-2020 and onwards: in addition to the requirements for a pure Economics major, students will have to take four courses in Finance, of which Introduction to Finance is compulsory. The other three courses in Finance are elective courses that need to be chosen from a list of four: Financial Markets and Asset Pricing, Managing Financial Institutions, Advancing Financial Management and International Finance. In total, a student needs to take 28 courses over the span of three years: 24 courses needed for a pure Economics major and 4 Finance courses. The 24 courses for a pure Economics major include seven (7) Foundation Courses and  two (2) Critical Thinking Seminars, nine (9) compulsory Economics courses and six (6) elective courses in Economics which are offered in the 5th and 6th semesters.  For more information see the requirements for a pure Economics major.

Sample Curriculum Structure

The following sample curriculum structure is applicable to the cohort of 2016-2019:

 

Semester I

Semester II

Semester III

Semester IV

Semester V

Semester VI

Introduction to Critical Thinking

Critical Thinking Seminar I

Critical Thinking Seminar II

Foundation Course 7

Economics Elective 1

Foundation Course 9

Foundations of Economic Reasoning

Foundation Course 4

Foundation Course 6

Foundation Course 8

Economics Elective 2

Economics Elective 3

Foundation Course 2

Foundation Course 5

Intermediate Microeconomics

Econometrics

Development Economics

Economics Elective 4

Foundation Course 3

Math for Economics

Intermediate Macroeconomics

Game Theory

Finance 2

Finance 4

 

 

Statistics for Economics

Finance 1

Finance 3

Economics Elective 5

The above table is only a sample curriculum structure. It shows how the course structure would look like for a major who is taking 3 CTS and 9 FC. Individual curriculum structure will vary depending on the number of FC and CTS one takes.

 

The following sample curriculum structure is applicable to the cohorts of 2017-2020:

 

Semester I

Semester II

Semester III

Semester IV

Semester V

Semester VI

Introduction to Critical Thinking

Critical Thinking Seminar

Foundation Course 5

Foundation Course 7

Economics Elective 1

Economics Elective 3

Foundation Course 1

Foundation Course 4

Foundation Course 6

Microecoomic Theory II

Economics Elective 2

Economics Elective 4

Foundation Course 2

Introduction to Economics

Microeconomic Theory I

Macroeconomic Theory II

Development Economics

Economics Elective 5

Foundation Course 3

Math for Economics

Macroeconomic Theory I

Econometrics

Finance 2

Finance 4

 

 

Statistics for Economics

Finance 1

Finance 3

Economics Elective 6

The above table is only a sample curriculum structure. There could be other possibilities, e.g. taking a foundation course in the 6th semester and taking three economics electives in the 5th semester; or, taking Finance 2 in the 5th semester and Finance 3 and 4 in the 6th semester.

 

Color code:

  • Two additional co-curricular courses, max one  per semester

  • Blue colored boxes: Foundation Courses (FC) or Critical Thinking Seminars

  • Red colored boxes: Economics Compulsory Courses

  • Peach colored boxes: Economics Optional Courses

  • Grey colored boxes: Finance Courses

Faculty

The Department of Economics at present has 16 permanent faculty members, with research and teaching interests that span a broad range of fields which include economic theory, game theory, behavioral economics, experimental economics, macroeconomics, monetary economics, economic growth, development economics, and different areas of applied microeconomics. More details about the Economics faculty can be found here: Economics Faculty

Economics and Finance Programme