Economics & Banking for Managers

Programme Overview

Economics and economic decision-making is part of basically every segment of life. In this course we firstly look at Economics in its two dimensions: Microeconomics and Macroeconomics, Banking sector which is the ‘life blood’ of any economy.
• Economics & Banking for Managers aims to provide participants with a good understanding of the main role players in the economy, the rationale behind decisions taken by them, and examining different types of markets (microeconomics).
• It also focusses on understanding the economy as a whole and investigating the meaning and interpretation of economic growth, inflation, exchange rates, etc. (macroeconomics).
• Within the banking part, the South African banking industry is explored, with specific attention paid to how banks function, what the role of the Reserve Bank is and what main risks banks are exposed to. This knowledge will enable the participant to better analyse the economy and banking sector, and to accurately interpret changes in the economy and the global economy as well as their implications for their organisations.


Learning Outcome

• Understanding how the economy works and explain how interest rates are determined, why there is an increase or decrease, and when an increase or decrease can be observed.
• Explain how exchange rates are determined, and why and when they can change.
• Understand globalisation and its effect on the South African economy.
• Identify factors influencing price sensitivity for a specific product.
• Understand how the market forces of demand and supply interact to determine price and output.
• Comprehend how market power and price regulation (such as price ceilings and price floors) impact on price and output levels of a specific product.
• Discern the functions and definitions of money and explain the creation and control of money.
• Distinguish between the money and the capital market.
• Identify and discuss the financial instruments and Think/reason about macro-economics.
• Highlight and explain the various financial institutions and their operations.
• Apply instruments of monetary policy in the South African context.
• Explain important exchange rate determinants and understand the political economy of South Africa.

Course Content

• The interaction of market forces of demand and supply in order to determine price and output.
• The impact of market power and price regulation (like price ceilings and price floors) on price and output levels of a specific product. Factors influencing price sensitivity for a specific product
• The interrelation of key concepts such as economic growth, inflation, interest rates, exchange rates, etc in the macro-economy. Globalisation, its economic impact and the key forces that are driving it.
• The different financial institutions and advantages of financial institutions and markets.
• The role of the different types of financial instruments in the operation of a modern economy.
The different types of financial markets, such as primary and secondary markets, money markets, capital markets, debt markets and foreign exchange markets. The role and functions of the SA Reserve Bank.