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ELEMENTS OF FINANCE I Syllabus

 

Finance is an emerging discipline. The scope of finance has now been expanded to encompass areas like mathematics, statistics, working capital management, financial analysis, risk, insurance, and multinational Finance. 

 

Disclaimer: This is the old syllabus of NEB.
For 2076 Upadted syllabus with PDF download option,


ELEMENTS OF FINANCE I Syllabus
GRADE: XI
Full Marks: 100
Teaching Hrs:150
I.         INTRODUCTION
Finance is an emerging discipline. Traditionally finance was concerned with financial instruments and institutions only. But, the scope of finance has now been expanded to encompass areas like mathematics, statistics, working capital management, financial analysis, risk, insurance, and multinational Finance. The role of finance in a company’s success has become paramount as all business decisions and activities of a business have financial implications. As such finance as a subject has found a prominent place as one of the functional areas of commerce education at the higher secondary level
II.      GENERAL OBJECTIVES
The general objectives of ELEMENTS OF FINANCE I Syllabus course are to enable the students to understand the concepts and principles of elementary finance as a foundation for higher-level education and to impart skills required for understanding financial market and institutions, corporate finance and insurance.
III.  SPECIFIC OBJECTIVES
On completion of ELEMENTS OF FINANCE I Syllabus course, the student will be able to:
a.       describe the meaning and scope of business finance;
b.      explain the functions, types, role, and importance of financial institutions and financial markets:
c.       discuss and determine the various types of financial assets:
d.      learn the basic concept of interest and discounting factors and involve in finance: and
e.       explain the concept and types of risk of insurance:
IV.   CONTENTS AND UNIT-WlSE TEACHING HOURS
  Units   Chapters                                          Teaching Hours

1.                                        Overview of Finance                                      10
2.                                        Financial Markets                                          10
3.                                        Financial Institutions                                      20
4.                                        Financial Assets                                             15
5.                                        Interest                                                    15
6.                                        Present Value and Discounting Technique I                      15
7.                                        Present Value and Discounting Technique II                      15
8.                                        Risk and Insurance                                         20
9.                                        Life Insurance                                                 15
10.                                    Non-life Insurance                                          15
                            Total of 150
V. COURSE CONTENT
UNIT I: OVERVIEW OF FINANCE
Concept and importance of finance; Relationship of finance with economics and accountancy; Scope of finance: investments, corporate finance, financial institutions, and markets.
UNIT 2: FINANCIAL MARKETS
Concept: Types of financial markets: money and capital, primary and secondary markets; Financial intermediaries: deposit institutions, insurance companies other financial institutions; investment bankers, mortgage bankers: the secondary market: organized exchanges and the over-the-counter market.
UNIT 3: FINANCIAL INSTITUTIONS 
Introduction and types of financial institutions, the role of financial institution in financial markets; Introduction, functions, and role of central bank; Commercial bank; Development bank and other financial institutions: finance companies, finance cooperatives, mutual funds pension and provident fund.
UNIT 4: FINANCIAL ASSETS
Real vs. financial assets: Meaning and characteristics of financial assets: Instruments of financial assets: long-term vs. short-term, ownership vs. creditorship and fixed vs. variable instruments; Types of long-term instruments: common stock, preferred stock, and bonds; Concept of par value,  book value and market value of long term instruments and computation of book value of the common stock: Types and uses of short term instruments: treasury bill, bankers acceptance, commercial paper, promissory notes, bill of exchange, letter of credit, mutual funds, Telebanking Instruments; ATM, Debit Card, Credit Card and electronic transfer.
UNIT 5: INTEREST
Concept of interest: Nominal and the real rate of interest, the periodic and effective rate of interest, riskfree rate of interest: Determinants of interest rate: inflation premium, default premium, maturity premium, liquidity premium: Computation of interest rates.
UNIT 6: PRESENT VALUE AND DISCOUNTING TECHNIQUE I
Future value and compounding: investing for a single period, investing for more than one period. Present value and discounting: the single-period case, the multi-periods case, Loan amortization.
UNIT 7: PRESENT VALUEAND DISCOUNTING TECHNIQUE II
Concept of cash flows: Even and uneven, the timing of cash flows. Future and present values of multiple cash flows: future value with multiple cash flows present value with multiple cash flows. Annuities and perpetuities: present values for annuity cash flows, future values for annuities, annuities due, perpetuities.
UNIT 8: RISK AND INSURANCE
Risk: concept, nature, cost & management. Concept and evolution of insurance: functions of insurance: Benefits of insurance: Nature of insurable risks: Principle of insurance: Features or insurance contract; Meaning, objectives, and methods of reinsurance.
UNIT 9: LIFE INSURANCE
Concept and importance of life insurance: Elements of the life insurance contract: Procedures of affecting life insurance policy: Role of agents: Computation of life insurance premium; Types of life insurance;
UNIT 10: NON-LIFE INSURANCE
Concept of non-life insurance; Concept and importance, types of policy and procedures:
V.           INSTRUCTIONAL PROCEDURES

        Lecture and discussion
        Case observation
        Field Visit
        Library Assignment
        Project Work
        Group and Individual Work
        Presentation
VI.        ASSESSMENT TECHNIQUES
     Written Examination 100 (100%)
VII.     EVALUATION SCHEME
Units
Title
Number of question
Marks allocated
Th.
Pr.
Total
Th.
Pr.
Total
1
Overview of Finance
1
1
5
5
2
Financial Markets
1
1
5
5
3
Financial Institutions
2
2
15
15
4
Financial Assets
1
1
2
5
5
10
5
Interest
1
1
10
10
6
Present Value and Discounting Technique I
1
1
10
10
7
Present Value and Discounting Technique II
1
1
10
10
8
Risk and Insurance
2
2
15
15
9
Life Insurance
1
1
2
5
5
10
10
Non-life Insurance
1
1
10
10
Total
9
5
14
60
40
100
       Note: Some questions may combine theory and computational problems.

VIII.  REFERENCES
1.         Joshi, Padam Raj, Elements of Finance-XI, Asmita Books Publication,    Ktm
2.         Brigham Eugen F. Fundamentals of Financial Management: The Dryden Press, Orlando.
3.         Dahal, Bhuwan and Dahal Sarita. A Hand-Book to Banking: Asmita Publications, Kathmandu.
4.         Joshi Padam Raj and Adhikari, Shivahari, Byabasthapan Ka Lagi Bitta Sastra: Taleju Prakashan, Kathmandu.
5.         Joshi, Shyam and Adhikari, Shivahari, Byabasthapan Ka Lagi Bitta Sastra: Taleju Prakashan. Kathmandu.
6.         Manandhar, Kamal Dass et.al. Fundamentals of Financial Management: Khanal Books and Stationery, Kathmandu.
7.         Panda G.S, Principle and Practice of Insurence: Kalyani Publishers, Ludhiana.
8.         Paudel, Rajan B. et.al. Fundamentals of Financial Management: Asmita Books & Publishers, Kathmandu.
9.         Rejda, George E. Principles of Risk Management & Insurance: Pearson, Delhi.
10.     Shrestha, M.K. et.al, Fundamental Principles of Financial Management: Taleju Prakashan, Kathmandu.
11.     Shrestha, Madhusudan, Fundamental of Banking: Buddha Academic & Publishers, Kathmandu.
12.     Pradhan Dr. Radlieshyam & Kathiwada RudraMani, Bitta Byabasthapan: Buddha Academic Enterprises Pvt. Ltd. Educational Publishers & Distributers Kathmandu.

 

People who read this may also like to read  All others Grade XI/XI NEB Syllabus.
Or Download All NEB updated syllabus NEB 2076 Updated Syllabus

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