Monetary Theory and Policy
- Management Sciences
- 300 level
- 3 credit units
- 274 pages
- 21 units
This course explores monetary theory and policy, providing a comprehensive overview of money, its demand and supply, and the role of financial institutions. It covers inflation, deflation, monetary policies, and the Nigerian capital and money markets. The course also delves into international trade, balance of payments, public finance, taxation, and budgeting in the Nigerian public sector. Students will gain insights into economic growth, development planning, unemployment, and the management of foreign operations and international trade.
About this course
- Difficulty
- Intermediate
- Study hours
- 208 hours
- Maths
- Basic
- Content
- Theoretical
- Practical work
- No
- Assignments
- Tutor Marked Assessments
- Final Examination
What you'll read
The real module and unit structure of BFN302, taken from the course material NOUN publishes.
One paragraph, so you can see how it reads
BFN302 · UNIT 1 MONEY
Money as a basis of adjustment: to carry on trade in a proper manner, the adjustment between money market and capital market is done through money. Similarly, adjustments in foreign exchange are also made through money. Further, international payments of various types are also adjusted and made through money.
What you should be able to do
- Define and explain key monetary concepts
- Analyze the role of financial institutions
- Evaluate the impact of monetary policies
- Understand international trade dynamics
- Apply public finance principles
What it prepares you for
- Financial Analyst
- Bank Manager
- Investment Advisor
- Economist
- Policy Analyst
- Banking
- Finance
- Government
- Consulting
- International Trade
Where it gets hard
The units students slow down on, and what makes each one heavy.
- Module 2: Financial Control and Markets
Unit 4: Tools of Monetary Policies
The unit requires understanding of complex financial instruments and their impact on monetary policy effectiveness.
- Module 3: International Economics
Unit 2: The Balance of Payments
Requires understanding of complex international trade models and their implications for developing economies.
A suggested way through it
13 weeks, about 106 hours in total. Yours will differ.
- Week 1Module 1: Introduction
Unit 1: Money · 8 hours
Define money and its evolution. Identify types of money. Explain functions of money. Compare market and subsistence economies.
- Week 2Module 1: Introduction
Unit 2: Demand for Money · 7 hours
Explain the difficulties of Trade by Barter. Explain the qualities of money. Discuss the role of money in the economy.
- Week 3Module 1: Introduction
Unit 3: Supply of Money · 8 hours
Define the Supply of Money. Evaluate the determinants of Money Supply. Estimate the money stock.
- Week 4Module 1: Introduction
Unit 4: Types of Financial Institutions · 7 hours
Define Financial Institutions. Identify the various types of Financial Institutions. Explain bank and non-bank financial institutions.
- Week 5Module 1: Introduction
Unit 5: Functions of Financial Institutions · 8 hours
Identify the functions of bank financial institutions. Explain the functions of non-bank financial institutions. Differentiate between the functions of specialised banks.
- Week 6Module 2: Financial Control and Markets
Unit 1: The Control of Financial Institutions · 7 hours
Examine how Central Bank of Nigeria controls Financial Institutions. Explain the importance of the Federal Ministry of Finance. Explain the activities of the Securities and Exchange Commission (SEC).
- Week 7Module 2: Financial Control and Markets
Unit 2: Inflation · 8 hours
Define inflation. Itemize the types of inflation. Explain the causes of inflation in Nigeria. Explain the effects of inflation.
- Week 8Module 2: Financial Control and Markets
Unit 3: Deflation · 7 hours
Define deflation. Determine the effects of deflation. Examine the various ways of controlling deflation.
- Week 9Module 2: Financial Control and Markets
Unit 4: Tools of Monetary Policies · 8 hours
Explain the meaning, objectives and stance of monetary policy. Discuss the various tools and techniques of monetary policy. Examine the administrative procedure of formulation of monetary policy.
- Week 10Module 2: Financial Control and Markets
Unit 5: The Nigerian Capital and Money Markets · 7 hours
Define the meaning of financial market, money market, capital market and their operators, instruments. Identify the money market instrument and institutions. Explain the functions of the Nigerian Money Market.
- Week 11Module 3: International Economics
Unit 1: International Trade · 8 hours
Explain the concept, reasons for and importance of International Trade. Quote the classical Theories of International Trade. Identify the advantages and disadvantages of International Trade.
- Week 12Module 3: International Economics
Unit 2: The Balance of Payments · 7 hours
Differentiate between Balance of Trade and Terms of Trade. Explain the meaning of Balance of Payments and its various items. Evaluate the consequences of chronic balance of payment deficits.
- Week 13Module 3: International Economics
Unit 3: Scope of Public Finance · 8 hours
Explain the meaning of Public Finance. Differentiates between Public Sector and Private Sector of the economy. Examine the objectives of Public Finance.
Unit 4: Taxation and Fiscal Policies · 8 hours
State clearly the reasons why Government levy tax or tax objectives. Define the principles of taxation. Point out the characteristics or features of a good tax system.
Preparing for the exam
- Create flashcards for key terms in Units 1-5 (money supply, inflation)
- Practice graphical analysis of supply/demand from Units 7-9
- Review past TMA questions and solutions thoroughly
- Focus on Nigerian economic examples in Units 10-13
- Allocate study time proportionally to unit weightings in syllabus
Questions students ask about this course
What is BFN302 about?
This course explores monetary theory and policy, providing a comprehensive overview of money, its demand and supply, and the role of financial institutions. It covers inflation, deflation, monetary policies, and the Nigerian capital and money markets. The course also delves into international trade, balance of payments, public finance, taxation, and budgeting in the Nigerian public sector. Students will gain insights into economic growth, development planning, unemployment, and the management of foreign operations and international trade.
How many units does BFN302 have?
BFN302, Monetary Theory and Policy, has 21 units across 4 modules, over 274 pages of course material. You can read it one unit at a time.
How many credit units is BFN302?
BFN302 carries 3 credit units, at 300 level in Management Sciences.
Is BFN302 hard?
BFN302 is rated intermediate level, with basic mathematical content. It is mostly theoretical work.
How long does BFN302 take to study?
About 208 hours of study, spread across its 21 units.
How is BFN302 assessed?
BFN302 is assessed by Assignments, Tutor Marked Assessments and Final Examination.
What can I do with BFN302?
Financial Analyst, Bank Manager, Investment Advisor, Economist and Policy Analyst.