Fundamentals of Finance

The aim of the course is to study theoretical and practical backgrounds of finance. In this course students acquire the basic knowledge of financial system structure and functions, the ability to analyze household and business activities, to evaluate their financial statements and prepare budgets, justify financial management decisions, based on financial mathematics methods.

The aim of the course - to teach students to apply the theoretical knowledge in Financial Management and time value of money calculation methods for assessing the financial decisions.

Microeconomics; Macroeconomics.

1. Financial system and functions 2. Household financial management: Life cycle hypothesis 3. Household Financial Management: Financial statements 4. Household Financial Plan 5. Financial calculations essence and its content 6. Interest calculation methods 7. The concept of cash flow and cash flow current and future values 8. Loan amortization 9. Bond evaluation 10. Government finance 11. Financial institutions and their operating principles 12. Financial markets and its functioning theoretical assumptions, financial markets instruments 13. Corporate Finance 14. Corporate financial information, company financial situation analysis

1. The student is able to recognize and describe basic financial concepts, demonstrate knowledge about the main actors of the financial system, their behavioral principles according to at least half of the criteria provided. 2. The student explains the basic principles of the functioning mechanism of the financial system and recognizes the components of the financial system according to at least half of the criteria provided. 3. The student prepares typical financial statements based on the solved tasks and calculates the main (profitability and liquidity) relative indicators according to at least half of the criteria provided. 4. The student solves elementary tasks using only the basic formulas for the present and future value of cash flows. 5. The student selects and applies methods for calculating future and present values, evaluating elementary typical financial decisions according to at least half of the criteria provided. 6. The student chooses a typical situation and fulfils the requirements for independent work, avoiding a broader and deeper analysis of the situation. 7. The student calculates the indicators of the given task, explains the reasons for the variation of these indicators and presents his/her opinion according to at least half of the criteria provided. 8. The student, together with other members of the working group, prepares an analytical written work on the basis of the requirements set. 9. The student, together with other members of the working group, prepares a public presentation according to at least half of the criteria provided. 10. The student demonstrates at least a minimal ability to communicate with others, share their work, to take responsibility for others.