About this Course

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Intermediate Level
Approx. 23 hours to complete
English
Subtitles: English
Shareable Certificate
Earn a Certificate upon completion
100% online
Start instantly and learn at your own schedule.
Flexible deadlines
Reset deadlines in accordance to your schedule.
Intermediate Level
Approx. 23 hours to complete
English
Subtitles: English

Offered by

Moscow Institute of Physics and Technology logo

Moscow Institute of Physics and Technology

American Institute of Business and Economics logo

American Institute of Business and Economics

Syllabus - What you will learn from this course

Week
1

Week 1

4 hours to complete

Perfect Capital Markets. Problems Caused by Private Information

4 hours to complete
12 videos (Total 104 min), 6 readings, 2 quizzes
12 videos
1.1. Introduction – perfect capital markets5m
1.2. Demand for the financial intermediation6m
1.3. Model of private information – key assumptions6m
1.4. Model of moral hazard14m
1.5. Co-insurance as a market solution to the moral hazard problem4m
1.6. Moral hazard in insurance (1) – a more advanced model12m
1.7. Moral hazard in insurance (2) – incomplete insurance8m
1.8. Model of adverse selection11m
1.9. Adverse selection in credit markets (1) – expected cash flows to the bank12m
1.10. Adverse selection in credit markets (2) – credit rationing8m
1.11. Moral hazard from increasing interest rates9m
6 readings
Konstantin Kontor10m
AIBEc. The American Institute of Business and Economics10m
Grading10m
Handouts – an important comment10m
1.1. Why do financial institutions exist?10m
1.2. Problems caused by private information10m
2 practice exercises
1 (Practice)20m
1 - Moral hazard, adverse selection, and the adventures of the greedy monopolist bank1h
Week
2

Week 2

3 hours to complete

ALLEVIATION OF MORAL HAZARD – DEBT AND EQUITY CONTRACTS. BANKS (1) – DIVERSIFICATION AND MONITORING

3 hours to complete
7 videos (Total 50 min), 2 readings, 2 quizzes
7 videos
2.2. Debt contract with liquidation (DCL) as a means of alleviation of moral hazard. The inefficiency of DCL6m
2.3. Monitoring as a universal and efficient way of overcoming unobservability5m
2.4. Multiple lenders (1) – the model8m
2.5. Multiple lenders (2) – bank contracts5m
2.6. Delegated monitoring (1) – the interaction of the parties and bank’s profit12m
2.7. Delegated monitoring (2) – banks’ vulnerability to runs5m
2 readings
2.1. Alleviation of moral hazard – debt and equity contracts1h
2.2. Diversification and the feasibility of delegated monitoring10m
2 practice exercises
2 (Practice)20m
2 - Debt contracts and the anatomy of bank financing1h
Week
3

Week 3

3 hours to complete

Banks (2) – Asset Transformation and Liquidity Creation. Banks’ Vulnerability with Respect to Runs

3 hours to complete
8 videos (Total 74 min), 2 readings, 2 quizzes
8 videos
3.2. Liquidity creation (1) – the model of liquidity11m
3.3. Liquidity creation (2) – the mechanism10m
3.4. Banks’ vulnerability with respect to runs15m
3.5. Ways to fight bank runs (1) – suspension of convertibility4m
3.6. Ways to fight bank runs (2) – deposit insurance9m
3.7. Problems of deposit insurance12m
3.8. Deposit insurance and the need to regulate6m
2 readings
3.1. Banks – illiquid asset transformation10m
3.2. Banks – creation of liquidity and bank runs10m
2 practice exercises
3 (Practice)20m
3 - Asset transformation – “black boxes” and “red triangles”1h
Week
4

Week 4

3 hours to complete

Bank Regulation and Reform. Payment Services. Mobile Banking. Bank 3.0

3 hours to complete
8 videos (Total 78 min), 1 reading, 2 quizzes
8 videos
4.2. The S&L crisis of the 1980’s. Zombie S&L’s. The sources and reasons of bank regulation8m
4.3. Bank regulation (1) – nature, goals, and importance13m
4.4. Bank regulation (2) – mechanism. The Basel Accords14m
4.5. Payment services – history, development, and technology5m
4.6. Mobile banking (1) – technology and services. Bank 3.011m
4.7. Mobile banking (2) – loans and monitoring at Bank 3.012m
4.8. Private banking. Mobile banking and traditional banking – from conflict to synergy7m
1 reading
4. Bank regulation and reform – an overview of articles10m
2 practice exercises
4 (Practice)20m
4 - From the Great Depression to Bank 3.01h

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About the Understanding Modern Finance Specialization

This Specialization is designed for a wide audience of those interested in finance either professionally or just of curiosity, including managers of different levels specializing in finance, accounting, business planning, strategy, consulting, and project management, IT specialists engaged in the area of finance, fin-tech, big data, and valuation, etc. Through four courses and the final Project, you will cover the theory and practice of capital markets and financial institutions, corporate finance and project valuation, financial and managerial accounting as applied to finance, as well as the M&A market as the ultimate judge of financial efficiency and value creation. The Specialization will prepare you to understand and use the applications of financial ideas, concepts, models, strategies, and tools to build a successful career in finance and in business, as well as to take advantage of opportunities offered by financial markets....
Understanding Modern Finance

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