EH AFTER I

↳ Why study Money Banking , ,

and Financial Markets ?

Direct finance [ through capital Markets ][ Face to face ]

1992 →
In Direct finance [ through Banking Sys or
leasing]

OF ¥
the value of the [ exchange rate ] related to the trade rate
currency is .

TND is
loosing value ← importation days

central Bank objectives stability

:
[ price

spricestobil.it#:
-
Banking Sys stability

_
interest rate [ it .
_ ,
cost of loans ↑ ]
-
exchange rate

of ¥0

loosing international position ← low trade Balance / low exchange rate .

Efficiency : _
productive
-
informative

- 2 / locative

- private Banks
central Banks of Tunisia
-
public Banks
-
Foreign Banks
Lending specialized Banks

Banks w/ particular status

Banks financial institutions

off shores Banks Agencies rep

foreign Banks

in Tunisia .

Leasing companies factoring companies Merchant Banks

of ¥
stocks :
give you the ownership in a Corporation .

bonds loans from to the

:
you company .

Financial liberalisation →
internal liberalisation interest rate , banking Sys ,
central banks intervention
[ External
.

liberalisation movement of capitals

-
of ¥
Bond market → Variable : interest rate -
Portfolio investment PI

[
.

" "
stock market → Variable : Price . -
foreign direct investment FDI
ooiedoo.carrefovr-geo.nl
L
> stable long run
short run capital
> PI
capital

t
stock exchange market .

-
Remittances more strobe
+ relation between recession and remittances
Mi :
currency in circulation [ bills and coins]
.

M2 : Mit Banking accounts [ Money .

supply ]

Blockchain :

Decentralized storage to the data [ blockchain is a

group of notes ]

AMP / TMM / = 7.03%

i AMP
Bank = +
Margin

= 7.03 +
Margin
Icar = 7.03+3 = 10.03-1 .

i
House = 7.03 + 2.25 = 9.28-1 .

=, the more efficient the financial Sys the more efficient the
economy .

Classification of financial market

Dept market :

short term / / Money market

maturity < 1
year
-

long term ( maturity > 1

) capital market
year
-

Equity market :

common stock

Primary market :

New
security issues sold to initial buyers .
 stock and bonds structure ofbanking sys

stock -public
give u ownership in a
carpony -private
-
foreign
bonds.
a
give loon to the
company Reting agencies. states.
Tunisia
united
interest on a band:coupon L
b
I
d I >

AAA BBB CCC DD

< Commential paper/bills

<i <10 notes (

10
(i730 bonds the more
risky
Rating the
ability of the country to
pay
back their loans.

DEf1: the new method of financing.

Cripto currency, blockchain, mobile payment fintech

Central Bank:

asis dos s0,396.53%I

>
es.
Ifti
finance irect finance.

Role of
money:
medium of exchange

3
-

-reserve
storage/store of value (bitcoin]
-unit of account

Central Bank:DCfI

- preserve the
stability of the price (inflation] use interest rote to stabilize
-stability of the
banking sys

the first payment sys is barter.

< "I5

M1 = coins; bills

Me= M1 +
beaking accounts money supply -

M.
stocks Me Mu
MC M2 = + - S M3

Mu=M3 + special account and foreign currencies

supply economy Demond

economy -fiscalpolisanolic
the
change in financial
sys:
financial liberalisation.
-ev ->

1 F DF DEFI
power of monetary
O-crestioninthe
crustionin
Keynes nehmen
1929 ge internations, 200

solar-pos
1982

"rencia
* >

1971 - asion crisis

financial crisis:
- lot of 5) orgentinian
Crisis
no more -
↳ first

I
level redeemable Crisis step toward the
- low prices in
gold creation of Shifting to
- Mexican crisis crypto currencies.

-"Financial crisis
- blockchain. more digitalistice.
I I -financial innovations.

-fintech.
-fixed exchang rete -
flexible exchange rate
- control ofcapitals - movement ofcapitals
-central Bank power of -central Bank lost the power
the mometery policy
invisible hand:
free market

money, transaction
3
classical theory... non intervention of the
government

s precaution

3
money >transaction Keynesianism theory. id = Ix= R4
= S4

s precaution
speculation
 id term: chops
7
stock market: stocks two main products
exchange ,

I bonds chapu
Hedging strategy
you buy some products to cover the risks. quing next week:Classical school

"Trep of
liquidity"
when the interest rate falls to
certain level that
a
everyone
currency:paper and coins prefers holding cash than Holding
edebt
Money =

classical theory:non intervention of

Evolution of the payment system: commodity

-
money:barter economy
the
gor [supply]
-fist
money:currencies
-
cheques:
-Electronic payment
-E-money:Bitcoin
Bitcoin.- an asset

the origin of themexican crisis Iggy

insolvency:the non-payment of credit to Banks (mortege loans] risk sharing:

determinant of
risks = -
interest rote

-
exchange rate

-
velatility in the stock market