| Unit name | Financial Crises |
|---|---|
| Unit code | ACFI30008 |
| Credit points | 20 |
| Level of study | H/6 |
| Teaching block(s) |
Teaching Block 1 (weeks 1 - 12) |
| Unit director | Mr. Diedrich |
| Open unit status | Not open |
| Units you must take before you take this one (pre-requisite units) |
Principles of Finance (ACFI20001) or Financial Markets, Institutions and Instruments (EFIM10029) |
| Units you must take alongside this one (co-requisite units) |
None |
| Units you may not take alongside this one |
None |
| School/department | School of Accounting and Finance - Business School |
| Faculty | Faculty of Social Sciences and Law |
Why this unit is important?
Financial markets help society in managing risk and in channelling funds to worthwhile projects. When markets become overheated or dry up, they fail to perform these functions well. The unit studies the mechanisms through which such crises come about. This helps you in better understanding how markets operate (or fail to operate) and how financial institutions can deal with a deep crisis.
How does this unit fit into your programme of study?
The unit is offered as an elective to several finance-related programmes. Taking part in this unit will complement your core studies by additional in-depth exploration of an important finance topic. The elective will deepen your understanding of the sources of financial crises and of the ways investors can navigate such crises. On a more general level, the unit also develops your skills in taking general finance tools and applying these tools to specific financial problems.
An overview of content
The unit provides you with a conceptual and analytical understanding of key aspects of financial crises. We analyse the dynamics of price bubbles (and the crashes that follow them), and we study trading strategies that employed by investors in different phases of the crisis. Dimensions of a crisis include liquidity failures (no buyers for my assets), payment defaults (no payments from my assets), and credit shortages. We look at a range of financial instruments that help investors navigate difficult market conditions, and we study how such instruments may either contain or amplify a crisis. We pay particular attention to the role of securitization (eg, CDOs in the 2007/08 crisis). Key financial crises from history and from the recent past serve as reference points.
How will students personally be different as a result of the unit?
You will gain confidence in applying general finance tools to the specific circumstances of a financial crisis. You will develop a sharpened awareness of how a financial crisis may emerge and how the investor can devise protective strategies for such events.
Learning Outcomes
Upon successful completion of the unit, students will be able to:
The weekly 2-hour lecture combines presentation by the lecturer with short exercise breaks that re-enforce the learning. In most weeks there is also a set of additional exercise classes (in smaller groups). You are given exercises in advance, these are discussed with your peers and your tutor in class, and full solutions are published after class. The moderated online Forum allows you further to explore your queries with your peers and with the lecturer.
Your total learning time for this unit is expected to be some 200 hours. This is made up of contact time, directed learning tasks, independent learning and assessment activity.
Tasks which help you learn and prepare you for summative tasks (formative):
Lectures include regular breaks to compare notes with other students and put questions to the lecturer. Weekly exercise classes offer an opportunity to receive feedback from the tutor and from your peers. Full written answers to all exercises are published, and a moderated online Discussion Forum offers an additional feedback loop.
Tasks which count towards your unit mark (summative):
100% CW, an individual 3,000 word essay assignment assessing ILO1, ILO2, ILO3 and ILO4
When assessment does not go to plan
As this is a final year unit reassessment is not normally permitted. However, where it is permitted it will be like for like in form of a 3000 word essay
If this unit has a Resource List, you will normally find a link to it in the Blackboard area for the unit. Sometimes there will be a separate link for each weekly topic.
If you are unable to access a list through Blackboard, you can also find it via the Resource Lists homepage. Search for the list by the unit name or code (e.g. ACFI30008).
How much time the unit requires
Each credit equates to 10 hours of total student input. For example a 20 credit unit will take you 200 hours
of study to complete. Your total learning time is made up of contact time, directed learning tasks,
independent learning and assessment activity.
See the University Workload statement relating to this unit for more information.
Assessment
The assessment methods listed in this unit specification are designed to enable students to demonstrate the named learning outcomes (LOs). Where a disability prevents a student from undertaking a specific method of assessment, schools will make reasonable adjustments to support a student to demonstrate the LO by an alternative method or with additional resources.
The Board of Examiners will consider all cases where students have failed or not completed the assessments required for credit.
The Board considers each student's outcomes across all the units which contribute to each year's programme of study. For appropriate assessments, if you have self-certificated your absence, you will normally be required to complete it the next time it runs (for assessments at the end of TB1 and TB2 this is usually in the next re-assessment period).
The Board of Examiners will take into account any exceptional circumstances and operates
within the Regulations and Code of Practice for Taught Programmes.
