EPPE6524 Islamic Money and Capital Markets

Course Assessments

This course follows a formative coursework which is unassessed. It is designed to

help prepare you for summative assessment which counts towards the course mark
and to the degree award. This course uses a range of formative assessment, such as
essays, problem sets, case studies, and reports. Summative assessment may be
conducted during the course. An indication of the formative coursework and
summative assessment for this course can be found below.

Essays (30%):
a. Curiosities from the Excess Reserve: A Central Bank Miscellany
b. Relationship between Excess Liquidity and Islamic Money Market Rate
c. An essay on Islamic capital market and social capital
d. Essays on Imperfect Islamic Capital Market

Case Studies (30%):

a. Sukuk KLIA2: A Comment
b. Sukuk Port of Djibouti: A Comment
c. Sukuk Top Glove: A Comment
d. Sukuk Khazanah Nasional: A Comment

Reports (Prepare a report) (25%):

a. Development of Islamic Money Market in Malaysia
b. Development of Islamic Capital Market in Malaysia

Problem Sets (15%)

a. In an economy where the of Islamic money market is initially in equilibrium

when the economy begins to slide into a deflation – (i) Using the
accompanying diagram, explain what will happen to the benchmark rate if
the central bank keeps the money supply constant at M1; (ii) If the central
bank is instead committed to maintaining a benchmark rate target of r 1, then
as the economy slides into deflation, how should the central bank react?
Using your diagram from part a, demonstrate the central bank’s reaction
b. Our discussion on consumer decisions and the production decisions of firms,
we have focused on only labor and the decisions that individuals make about
whether or not to work. We know from our study of production functions
that firms also use capital to produce output. Where does capital come from?
Not surprisingly, it is the result of another consumer decision, the decision of
whether or not to save. Please analyse in the context of the decisions
consumers and firms make in the capital market.

Note: a group of 3 students is assigned for each assessment