Economics & Statistical Analysis

Course overview

Economics & Statistical Analysis provides the basic theoretical framework for analysis of commercial activity. It also provides a framework for the analysis of interest rate and foreign exchange markets. Combined with basic statistical analysis, its application to a treasury environment provides an understanding of economic history, current economic trends and a basis for forecasting economic trends.

Economics & Statistical Analysis is only available as part of the AMCT Diploma in Treasury. It is not a standalone qualification.

Economics & Statistical Analysis is one of four compulsory foundation papers which comprise stage one of the AMCT Diploma in Treasury – the ACT’s core treasury qualification. Only students enrolling on AMCT can book this paper.

Exemptions

• Exemptions from stage one of AMCT are available where prior knowledge can be demonstrated in the form of a relevant qualification.
• Automatic exemptions from stage one of AMCT is available for all UK accountancy qualifications under the fast-track route.

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Learning outcomes

Following completion of the course you will be able to:

• Understand the basics of micro and macro-economics and the overall scope and nature of economic theory.
• Understand the interaction between economic policy and the business environment.
• Understand and assess the theoretical concepts underlying economic commentary, and their relevance to the business and treasury environment.
• Understand the impact of market data on interest rates and foreign exchange rates in a treasury environment.
• Use statistical methods to analyse past data and infer future trends.

Course content

Study Unit 1 – Statement of the economic problem

The scope of economics
Scarcity - the economic problem
Economic systems

Study Unit 2 – Elementary theory of demand and supply, price equilibrium, monopoly and oligopoly

The theory of demand
The theory of supply
The market mechanism
Demand elasticities
Supply elasticity
Profit maximisation
Market forms

Study Unit 3 – Macro-economics

The difference between macro and micro-economics
The circular flow of income
Aggregate demand

Study Unit 4 – Monetarism versus Keynesianism

Introduction to macroeconomics, Keynesian theory and Monetarist theory
The impact of monetary policy
The impact of fiscal policy
The impact of supply side policy
Macroeconomic goals
Government policy through time

Study Unit 5 – Interaction between government, business and the corporate treasury environment

Financial markets
Central banks
Inflation
Measuring unemployment
Major central bank announcements
Interest rates and exchange rates
The transmission mechanism

Study Unit 6 – Business statistics

Introduction
Sources
Accuracy
Data presentation
Index numbers
Weighted indices
Graphs and charts
Sampling and significance testing
Frequency distributions
Computational techniques
Frequency distribution computations
Measures of dispersion
Measure of skew

Study Unit 7 – Probability theory

Introduction
Probability of an event
Conditional probability and independence
Binomial distribution
Poisson distribution
Normal distribution
Estimation
Statistical decision making – hypothesis testing

Study Unit 8 – Statistical inference and econometric modelling

Overview
Modelling methods
Linear regression
Correlation
Moving averages
Exponential smoothing
Time series

Study tools

• A comprehensive course manual
• e-learning website providing access to the course manual, past/pilot papers, glossary, student resources and ask the tutor

What’s included: Course manual (print and online) and access to the e-learning website.

You will need: Access to a computer with internet connection.

Entry requirements

Due to the course being written and examined in English, students will need to possess a good standard of both written and spoken English.

Tuition and revision

Optional tuition

The four day optional tuition course covers core topics. Tuition has been tailored to cover the key areas of the course – reinforcing and improving knowledge. Tuition days complement your home study; each day is intensive, covering a number of topics in detail with lecturers, worked examples and tutorial sessions.

Optional revision

The three day optional revision course covers exam preparation techniques, revision, tutor-structured solutions and exam question practice. The objective of the revision course is to revise material covered earlier, to enhance your confidence in attempting exam standard questions in the topics covered. Coverage is not comprehensive, but is designed to complement your final exam preparations and the previous tuition course and/or home study programme.

You can book onto the optional tuition and revision courses when you enrol or up to10 days before the start of the courses.

• Meet the tutors

Assessment and examination

Students are assessed by a three-hour written exam.

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