BANKING ACADEMY OF VIETNAM

BANKING FACULTY/ MONETARY DIVISION

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UNIT OUTLINE
(Year applied: 2022– 2023)

1. Course name: Finance - Money

2. Course code: FIN86A
3. Qualifications/ Training mode: Full-time students
4. Prerequisites: Studied subjects: Macroeconomics
5. Number of credits: 03
6. Brief description of the course:
After completing the course, students are able to handle knowledge and understand and
finance topics to write scientific reports.
The course helps students develop analytic and tactical ability as well as capture economic
operating process at a certain extent to be able to fit different job positions in banking and finance
fields. This course includes 8 chapters, covering contents relating to financial systems, public
finance, corporate finance, financial markets & interest rate, financial institutions, money supply-
demand, central banks and conduct of monetary policy.
7. Targets/ Outcome standards of the course:
After completing the course, students are able to:
- Understand concepts and terminologies related to money-finance issues, financial system
and monetary policy, basic operation of financial market, financial institutions, public finance
and corporate finance.
- Apply knowledge to identify the situation of money-finance issues, financial system and
monetary policy at a certain extent. Figure out changes of money supply and demand, money
base; set up central banks!"balance sheet; establish yield curve, calculate stock price.
- Explain, analyze fundamental phenomena occurring in the economy as interest rate
fluctuations, inflation, changes in financial operations of public sectors, private sectors and
financial institutions, central banks!" selections of monetary policy goals, instruments. On this
basis, giving appropriate policy recommendations.

8. Assessing requirements for students:

Outcome standards Assessing requirements

1- Understand concepts and - Present concepts, terminologies related to monetary issues,

terminologies related to monetary financial system and monetary policy.
issues, financial system, - Explain and understand the meaning of studying those
monetary policy, and operations concepts and terminologies.
of financial institutions, public
finance and corporate finance.
2- Apply knowledge to identify - Define the situation of monetary issues, financial system,
the situation of monetary issues, and monetary policy.
financial system and monetary - Set up central banks!"balance sheet, define monetary base
policy at a certain extent. Figure and its sources.
out changes of money supply and - Figure out changes of money demand, money supply,
demand, monetary base; set up money multipliers and monetary base with given
central banks’ balance sheet; assumptions.
establish yield curve, predict - Establish yield curve
stock price. - Figure out stock price related to market interest rate
movements.
3- Explain, analyze fundamental - Explain the evolution of money; Characteristics and
phenomena occurring in the operations of financial system.
economy as interest rate - Explain expenditure revenue activities of government in
fluctuations, inflation, changes in reality, causes and solutions for budget deficit.
financial operations of public - Explain financial activities of businesses, ways to mobilize
sectors, corporate sectors and funds and invest on corporate!s assets.
financial institutions, central - Explain activities of some financial institutions
banks!"selections of monetary - Explain operations and fluctuations of financial markets.
policy goals, instruments and - Explain interest rate operating mechanism, causes of
tools. On this basis, giving fluctuations of interest rates, relationship between interest
appropriate policy rates and stock prices, analysing the meaning of yield curve.
recommendations. - Understand causes of inflation, relationship between money
supply and inflation, governments and central banks’
measures to control inflation.
- Explain money supply process, money creation through
banking system, the role of financial intermediaries
- Explain central banks!"selections of monetary policy goals
and tools in specific conditions; analyze their affecting
mechanism, pros and cons of monetary policy tools.
- Forecast interest rate movements, inflation and stock prices
at a certain extent.
- Evaluate impacts of these forecasts to operations of the
financial system, the central banks!" implementation of
monetary policy and macroeconomic variables.
- Give policy recommendations.

 9. Assessments:
-
Mid-term test: 15%
-
Assignment: 15%
-
Final exam: 60%
-
Attendance: 10%
Assessment plan is demonstrated by the following table:
Outcome standards Assessment form Time

1- Combinations of outcome standards related to Mid-term exam th

8 section
the overview of money-finance, corporate
finance, public finance and financial market and
interest rate.
2- Combinations of outcome standards related to Assignment th th
13 & 14
commercial bank and financial institutions,
sections
money supply/ demand, central banks and
monetary policy.
3- All outcome standards Final exam End of
semester

10. Timing for teaching and studying:

Teaching in class: 70%
Essays, assignment: 30%
11. Teaching and studying method:
Instructors will focus on guiding, consulting students; giving feedbacks on discussion results,
assignments, test results and theoretical issues in every topic depends on specific requirements.
During the studying process, students are encouraged to present their varied point of views,
ideas, models and instruments.
12. References (in Vietnamese and English):
Textbook:
- Frederic S. Mishkin, (2019), The economics of money, banking and financial markets,
th
12 Edition, Pearson Press.
-
Assoc. Dr. To Kim Ngọc & Dr. Nguyen Thanh Nhan (2020), Money - Banking Textbook,
Banking Academy, World Publisher
- Assoc. Dr. Mai Thanh Que & Assoc. Dr. Le Thi Dieu Huyen (2019), Financial Theory
Textbook, Banking Academy, Labour Publisher
Other references:

- Jonathan Gruber, (2015), Public Finance and Public Policy, 5th Edition , Worth
Publishers

 - Ross, Westerfield, and Jaffe, (2012), Corporate Finance, 10th Edition, McGraw-Hill
Education
- Peter Howells & Keith Bain (2008), The Economics of Money, Banking and Finance,
4th Edition, 2008

- Harvey S. Rosen , Ted Gayer, (2010), Public Finance, 8th Edition , McGraw Hill Higher
Education
- William L. Megginson, (2008), Corporate Finance: The Core , Cengage Learning EMEA
- Annual reports of State bank of Vietnam and financial statements of commercial banks
Specialized documents and regulations:
- SBV Law and guiding documents
- Legal documents of SBV
E-documents/ websites:
- Websites of WB, IMF, ADB, BIS, other central banks, SBV, commercial banks, financial
companies, insurance companies, etc...
13. The course!s content
Topic Targets/ Outcome standards Main contents Timing

Topic 1: After completing topic 1, students can - Basic knowledge of 06 lessons

Overview of understand: money
money and - Concept, functions and roles of money - Basic knowledge of
finance - Evolution of money finance
- Concept, functions and roles of finance
- Concept, components, classification and
structure of financial system.
- Vietnamese financial system

Topic 2: After completing topic 2, students can - Overview of public 03 lessons

Public understand: finance
Finance - Introduction to public finance: - Expenditures and
Concepts, characteristics, and roles of revenues of government
public finance - Budget balance and
- Government expenditures Fiscal policy
- Government revenues
- Budget balance and fiscal policy





 - Overview of corporate
After completing topic 3, students can
finance
understand:
- Assets, liabilities, and
- Introduction to corporate finance:
equity
Topic 3: Concept, classification of assets and
- Revenues, expenses,
Corporate capital of a corporate 03 lessons
and income
Finance - Assets, liabilities, and equity
- Capital Budgeting,
- Revenues, expenses, and income
Capital Structure, and
- Main areas of corporate finance
Working Capital
Management

After completing topic 4, students can * Functions and roles of

understand: financial markets
Topic 4:
- Functions and roles of financial - Classification of
Financial
markets. financial markets 09 lessons
markets and
- Classification of financial markets - Financial market
interest rate
and their characteristics instruments

After completing topic 5, students can

understand:
Topic 5: - Concept of financial institutions. - Financial
Financial - Classification of financial institutions. intermediaries 03 lessons
institutions - Features and roles of financial - Other financial
institutions institutions (self-study)

After completing topic 7, students can

understand:
- Concept and theories of money demand
Topic 6: - Money stocks in the economy, measures
- Money demand
Money of money supply
- Money supply
supply – - Money supply process in the economy 6 lessons
- Inflation
demand and - Central bank’s controlling money supply
inflation - Concept, indicators, and classification of
inflation
- Measures to control inflation.
- Inflation in Vietnam




















 After completing topic 8, students can

understand: - Concept of central
- Concept, functions and roles of central banks
banks. - Models of central
- Models of central banks, pros and cons banks and its
Topic 7: of each model. dependence in each
Central - Central banks!"independence and its model
banks and impact on the implementation of - Functions of central 6 lessons
Monetary monetary policy. banks
Policy - Targets of monetary policy, how to - The introduction of
select targets, relationship among targets. monetary policy –
- Concepts, features and affecting Targets of monetary
mechanism of monetary policy tools. policy, Instruments of
- SBV!s monetary policy in different monetary policy
periods.

14. Lecturers!"contacts:

No. Lecturer Phone number E-mail Office

1 Vu Mai Chi 0983 293388 [email protected] Room 504, 7-floor

building, Banking
Academy of Vietnam
2 Than Thi Vi Linh 0985276611 [email protected] Room 504, 7-floor
building, Banking
Academy of Vietnam
3 Le Thanh Binh 032 640 1312 [email protected] Room 504, 7-floor
building, Banking
Academy of Vietnam
4 Le Ha Thu 0902222336 [email protected] Room 504, 7-floor
building, Banking
Academy of Vietnam














 15. Studying process:
Lesson Teaching and studying operations

1-6 Topic 1: Overview of money and nance

- Lecturer: introduce theory of definition, functions, roles of money; The evolution of
money; Definition, functions, and roles of finance; Definition, components,
classifications and structure of financial systems. Instruct students to self-study and
discuss the situation of financial system in Vietnam.
- Reference: Chapter 2 and 3 Frederic S. Mishkin, (2019), The economics of money,
th
banking and financial markets, 12 Edition, Pearson Press.
- Students!"main operations: listen to lecturer, contribute to the lecture, self- study and
discuss the situation of financial system in Vietnam.
- Test/ assessment forms applied: attendance
7-9 Topic 2: Public Finance
- Lecturer: introduce concepts, characteristics and roles of public finance; Concepts
and characteristics of government!s expenditure and revenue; Budget balance and
fiscal policy. Instruct students to self-study and discuss expenditure and revenue
activities of Vietnamese government.
- Reference: Chapter 1, Jonathan Gruber, (2015), Public Finance and Public Policy,
th
5 Edition , Worth Publishers
- Students’ main operations: listen to lecturer, contribute to the lecture, self- study and
discuss expenditure and revenue activities of Vietnamese government.
- Test/ assessment forms applied: attendence

10-12 Topic 3: Corporate Finance

- Lecturer: introduce to corporate finance; Concepts, classifications assets, liabilities,
and equity of businesses; Expenses, revenues, and benefits; Benefits distribution;
Capital Budgeting, Capital Structure, and Working Capital Management
- Reference: Ross, Westerfield, and Jaffe, (2012), Corporate Finance, McGraw-Hill
Education
- Students!"main operations: listen to lecturer, contribute to the lecture, self- study and
discuss
- Test/ assessment forms applied: attendence

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 13-21 Topic 4: Financial markets and interest rate

- Lecturer: introduce concepts, functions, roles of financial markets, classification of
financial markets and features of each market. Instruct students to self-study and
discuss financial market instruments, the situation of financial markets in Vietnam;
introduce concepts, types of interest rates, factors in uence interest rates from
different view points. Instruct students to solve problems related to interest rates, read
and do research on interest rate movements in Vietnam and interest rate policy of
different central banks.
- Reference: Chapter 2, 4 and 5, Frederic S. Mishkin, (2019), The economics of
money, banking and financial markets, 12th Edition, Pearson Press.
- Students’ main operations: listen to lecturer, contribute to the lecture, self-
study and discuss financial market instruments, the situation of financial market in
Vietnam.
- Test/ assessment forms applied: attendance
22-24 Mid-term exam

25-27 Topic 5: Financial institutions

- Lecturer: introduce concepts, types, features of commercial banks. Instruct students
to self-study and discuss other financial institutions and the financial intermediary
system in Vietnam.
- Reference: Chapter 2,8,9, and 10 Frederic S. Mishkin, (2019), The economics
of money, banking and financial markets, 12th Edition, Pearson Press.
- Students’ main operations: listen to lecturer, contribute to the lecture, self-study and
discuss other financial institutions and the financial intermediarysystem in Vietnam.
- Test/ assessment forms applied: attendence

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 28-33 Topic 6: Money supply - demand and in ation

- Lecturer: introduce concepts, theories of money demand; introduce concepts,
measures of money supply, money supply process, central banks’ ability to
control money supply. Instruct students to solve problems related to money
supply – demand, self-study and do research on central banks’ ability to control
money supply. Introduce concepts, measures, types, causes, effects of inflation
and measures to control inflation. Instruct students to self-study and do
research on inflation in different countries and Vietnam.
Reference: Chapter 3,15,16 and 22 Frederic S. Mishkin, (2019), The economics of
th
money, banking and financial markets, 12 Edition, Pearson Press
- Students!"main operations: listen to lecturer, contribute to the lecture, solve problems
related to money supply – demand, self-study and do research on central banks!"ability
to control money supply and inflation in different countries and Vietnam.
- Test/ assessment forms applied: attendence
34-39 Topic 7: Central banks and Monetary Policy
- Lecturer: introduce concepts, models and functions of central banks. Introduce the
basis of monetary policy, targets and instruments of monetary policy. Instruct students
to self-study and do research on the implementation of monetary policy in different
countries including Vietnam.
- Reference: Chapter 14,17 Frederic S. Mishkin, (2019), The economics of
money, banking and financial markets, 12th Edition, Pearson Press
- Students’ main operations: listen to lecturer, contribute to the lecture, self- study and
do research on central banks’ models in differenct countries and the implementation of
monetary policy in different countries including Vietnam.
- Test/ assessment forms applied: attendence
40-45 Discussion about assignments
- Lecturer: introduce assessment criteria, give comments and mark students!"
assignments.
- Students!"main operations: present their group!s assignment, listen to other groups!"
presentations, raise questions and give comments to contribute to other groups!"
assignments.
- Test/ assessment forms applied: assignment




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