Page 12 - CAPE Financial Services Syllabus Macmillan_Neat

UNIT 1
MODULE 1: INTRODUCTION TO FINANCIAL PRODUCTS AND SERVICES (cont’d)

SPECIFIC OBJECTIVES CONTENT
Students should be able to:
7. discuss the importance of financial (a) The reasons for the existence of
financial intermediation and
markets and financial mediation as intermediaries:
it relates to economic growth and
development; (i) reduce transaction cost;

8. describe the structure of financial (ii) reduce asymmetric
markets;
information;
9. describe securities (instruments)
traded in financial markets; (iii) regulation and money
production; and,

(iv) risk sharing and asset
transformation.

(b) How financial markets channel funds

from lenders/savers to

borrower/spenders.

(c) Differences between direct and
indirect finance.

Structure of financial markets:

(a) Debt and equity markets.

(b) Primary and secondary markets.

(c) Exchange and over-the-counter
markets.

(d) Money and capital markets.

Financial Instruments

(a) Money market instruments:

(i) treasury bills;

(ii) negotiable bank certificates of
deposit, and commercial
papers;

(iii) banker’s acceptances;

(iv) repurchase agreements; and,

(v) federal funds.

CXC A38/U2/16 7