Advanced FICM Course Guide Book
Advanced FICM Course Guide Book
Advanced FICM Course Guide Book
Postgraduate Program
Course Description
This course will provide students with an understanding of the financial system in general and the
operation and structure of financial markets and institutions in particular. It will also emphasize on the
characteristics and pricing of various financial instruments including derivative instruments. It aims to
develop awareness of the theoretical and practical problems associated with different systems of financial
markets regulations. The course covers topics such as financial assets and their pricing, equity markets,
bond markets, money markets, Foreign exchange markets, mortgage markets and asset securitization,
derivative markets, financial institutions, central bank and money creation and regulation of financial
institutions and markets.
Course Objectives
After successfully completing this course, students are expected to be able to:
Explain the role of financial system in a nation
Understand the structure and operation of depository financial institutions
Understand the structure and operation of non-depository financial institutions
Understand how the central bank creates or destroys money
Understand the characteristics and pricing of financial assets
Discuss the different forms of financial markets and their operations and
Describe the rational for and systems of financial regulation.
Course Content
Chapter 1: An Overview of the Financial System.
1.1 The role of financial system in the economy
1.2 Financial assets
1.3 Financial markets: role, classifications and participants
1.4 Financial Institutions
1.5 Regulation of financial systems
Chapter 2: Financial Institutions in the Financial System
2.1 Introduction
2.2 Depository financial institutions
2.2.1 Commercial Banks
2.2.2 Saving and Loan Associations
2.2.3 Credit Unions
2.2.4 Microfinance institutions
2.3. Non Depository Financial Institutions
2.3.1 Insurance companies
2.3.2 Pension funds
2.3.3 Mutual funds
2.3.4 Investment Banking Firms
Chapter 3: Central Banking System
3.1 Evolution of Central Banking
3.2 Central Banking Functions
3.3 Monetary Policy & its Objectives
3.4 The Money Supply Process
Chapter 4: Determinants of asset price and interest rates
4.1 Properties and pricing of financial assets
4.2 The level and structure of interest rates
4.3 The term structure of interest rates
Chapter 5: Financial Markets In The Financial System
5.1 Organization and Structure of Markets
5.2 Primary and secondary markets
4.1 The Money Market
4.2 Capital Market
4.2.1 Debt Market
4.2.2 Equity Market
4.3 Foreign Exchange Markets
4.4 The Derivative Market
4.4.1 Financial futures market
4.4.2 Options markets
4.4.3 Swaps, caps, floor and credit derivatives
Prepared by:
Elefachew Mossisa (PhD,
Approved by:
Department Head
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College Dean
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