Course overview
- Study period
- Semester 2, 2024 (22/07/2024 - 18/11/2024)
- Study level
- Undergraduate
- Location
- St Lucia
- Attendance mode
- In Person
- Units
- 2
- Administrative campus
- St Lucia
- Coordinating unit
- Economics School
Analyses economics of modern banking theory and financial institutions management. Describes various types of financial institutions and examines means of managing their operations.
The course introduces students to the Australian financial system, and provides an overview of a financial system in a developed economy by describing its main components. Theﾠcourseﾠexplains the role of a financial system in the economy, the functioning of financial markets, the main characteristics of common financial products, the valuation of financial assets, the nature and management of financial institutions, the role of central banks in the payment system and the regulation of the financial system. Thus, the course does not exclusively focus on financial institutions management issues, as the title may suggest, but aimsﾠat providing aﾠwide picture of the different components making the Australian financial system, components that are present in a form or another in the financial systems of all developed economies.
The course provides the background recommended for students who plan to take more advanced topics in Financial Economics such as ECON3210 Financial Markets and Institutions. Although not a formal requirement, the course is also useful for students planning to study FINM2401 Financial Management, FINM3401 Corporate Finance or FINM3404 Banking and Lending Decisions.ﾠ The course has also been designed to appeal to students outside the BEL Faculty who are interested in obtaining an overview of the operation of the financial system. A basic level of maths is required for the course.
Course requirements
Assumed background
This course is an introduction to financial marketsﾠ and institutionsﾠ and therefore does not require any background in Finance. Due to its introductory nature, this course is NOT recommended for third year students who have taken more advanced Finance courses already, unless required by their degree.
Prerequisites
You'll need to complete the following courses before enrolling in this one:
ECON1010 or 1011
Recommended prerequisites
We recommend completing the following courses before enrolling in this one:
ECON1020
Course contact
School enquiries
Student Enquiries, School of Economics
All enquiries regarding student and academic administration (i.e. non-course content information, e.g., class allocation, timetables, extension to assessment due date, etc.) should be directed to enquiries@economics.uq.edu.au.
Enquiries relating specifically to course content should be directed to the Course Coordinator/Lecturer.
Course staff
Timetable
The timetable for this course is available on the UQ Public Timetable.
Additional timetable information
Tutorial Preferencing: Please refer toﾠMy Timetable (available via yourﾠmy.UQ dashboard) for more information on the tutorial preferencing and allocation process.
Tutorials will commence in Week 2.ﾠ
The timetable is published through the UQ Public Timetable found in the APPs section of myUQ.ﾠStudents should refer to the timetable prior to the commencement of classes to ensure that they have the most up to date information, as from time to time late room changes may occur.
Public Holidays: Wed 14 August (Royal Queensland Show), Mon 7 October (King's Birthday).
In-Semester Break: 23 - 29 September. Semester 2 classes recommence Mon 30 September.
Aims and outcomes
The course aimsﾠto introduce the student to the role of the financial system in the economy, the functioning of the financial markets and its products, the nature and management of financial institutions, and the regulation of the financial system.
The course teaches the key concepts of the discipline providing an overview of the financial system, whichﾠis the context of many other Economics courses, asﾠwell as providing solid foundations for those contemplating further studies in the area of Financial Economics or Finance.
Learning outcomes
After successfully completing this course you should be able to:
LO1.
Demonstrate comprehension of basic economics and finance news.
LO2.
Perform basic financial calculations.
LO3.
Demonstrate expertise in analysing and evaluating financial markets, instruments, and institutions.
LO4.
Evaluate the validity of economic theory by contrasting it with real world data.
LO5.
Analyse the implementation and impact of monetary policy in a modern economy.
LO6.
Create an analysis of a course related topic and present it clearly and freely to a peer audience.
Assessment
Assessment summary
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Quiz, Tutorial/ Problem Set |
Online Test 1
|
10% |
24/07/2024 - 30/08/2024
4pm |
| Quiz, Tutorial/ Problem Set |
Online Test 2
|
10% |
21/08/2024 - 20/09/2024
4pm |
| Quiz, Tutorial/ Problem Set |
Online Test 3
|
10% |
18/09/2024 - 25/10/2024
4pm |
| Quiz, Reflection |
Warm Up Reading Quiz
|
10% (best 10 of 12 quizzes comprise 10*1%=10%) |
Wednesdays 5:05 pm |
| Practical/ Demonstration, Presentation, Project, Role play/ Simulation |
Team Presentation 1
|
20% |
2/09/2024 - 6/09/2024
Allocated time slot between 2/09/24 - 6/09/24 |
| Creative Production/ Exhibition, Performance, Practical/ Demonstration, Presentation, Project |
Team Presentation 2
|
40% |
4/11/2024 - 15/11/2024
Allocated time slot during examination period |
Assessment details
Online Test 1
- Online
- Mode
- Written
- Category
- Quiz, Tutorial/ Problem Set
- Weight
- 10%
- Due date
24/07/2024 - 30/08/2024
4pm
- Learning outcomes
- L02, L03
Task description
There will be 3 online, open book, non-invigilated tests. These tests replace the mid-semester exam and part of the final exam and will therefore be more difficult and longer than the Warm-Up Reading Quizzes. The format includes MCQ, SAQ, fill in the blanks, calculus and graphical answers. The idea is to attempt these tests parallel to the according lecture and in previous semesters, students used several hours for each test.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI and/or MT technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
on blackboard
Deferral or extension
You cannot defer or apply for an extension for this assessment.
These online tests are available for numerous weeks and are meant to be worked on continuously. The solutions are published shortly after due date.
Late submission
Penalties will be applied for late submissions as follows:
Less than 5 minutes late: 5% penalty
From 5 minutes to less than 15 minutes late: 20% penalty
More than 15 minutes late: 100% penalty
Online Test 2
- Online
- Mode
- Written
- Category
- Quiz, Tutorial/ Problem Set
- Weight
- 10%
- Due date
21/08/2024 - 20/09/2024
4pm
- Learning outcomes
- L02, L03, L04
Task description
There will be 3 online, open book, non-invigilated tests. These tests replace the mid-semester exam and part of the final exam and will therefore be more difficult and longer than the Warm-Up Reading Quizzes. The format includes MCQ, SAQ, fill in the blanks, calculus and graphical answers. The idea is to attempt these tests parallel to the according lecture and in previous semesters, students used several hours for each test.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI and/or MT technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
on blackboard
Deferral or extension
You cannot defer or apply for an extension for this assessment.
These online tests are available for numerous weeks and are meant to be worked on continuously. The solutions are published shortly after due date.
Late submission
Penalties will be applied for late submissions as follows:
Less than 5 minutes late: 5% penalty
From 5 minutes to less than 15 minutes late: 20% penalty
More than 15 minutes late: 100% penalty
Online Test 3
- Online
- Mode
- Written
- Category
- Quiz, Tutorial/ Problem Set
- Weight
- 10%
- Due date
18/09/2024 - 25/10/2024
4pm
- Learning outcomes
- L02, L03, L04, L05
Task description
There will be 3 online, open book, non-invigilated tests. These tests replace the mid-semester exam and part of the final exam and will therefore be more difficult and longer than the Warm-Up Reading Quizzes. The format includes MCQ, SAQ, fill in the blanks, calculus and graphical answers. The idea is to attempt these tests parallel to the according lecture and in previous semesters, students used several hours for each test.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI and/or MT technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
on blackboard
Deferral or extension
You cannot defer or apply for an extension for this assessment.
These online tests are available for numerous weeks and are meant to be worked on continuously. The solutions are published shortly after due date.
Late submission
Penalties will be applied for late submissions as follows:
Less than 5 minutes late: 5% penalty
From 5 minutes to less than 15 minutes late: 20% penalty
More than 15 minutes late: 100% penalty
Warm Up Reading Quiz
- Online
- Mode
- Written
- Category
- Quiz, Reflection
- Weight
- 10% (best 10 of 12 quizzes comprise 10*1%=10%)
- Due date
Wednesdays 5:05 pm
- Other conditions
- Student specific.
- Learning outcomes
- L01, L02, L03
Task description
There will be 12 short online quizzes with 10 - 15 questions each. Each quiz will be available for several days and is not timed. The quiz questions will relate to reading exercises for future classes and / or topics from previous lectures. The exact timing of the quizzes will be announced on blackboard. Each quiz will be due at the beginning of class and no extension will be granted, as these are ensuring that you have done the pre-class readings. You are strongly encouraged to do the reading and quiz BEFORE class (UQ policy requires due date during class time or by 5pm in the evening beforehand ... I set the due date to the beginning of the class to enable students to do the reading and quiz at a time that is most convenient). Each quiz counts for 1% of the total. Only the best 10 quizzes count toward your final mark. This allows you to miss two quizzes without any impact on your mark.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI and/or MT technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI tools.
Submission guidelines
Blackboard
Deferral or extension
You cannot defer or apply for an extension for this assessment.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
This is a pre-class reading quiz. Late reading / submission would undermine the preparation for class. Only the best 10 out of 12 count, so you can miss 2 quizzes without penalty.
Team Presentation 1
- Identity Verified
- Team or group-based
- In-person
- Mode
- Activity/ Performance, Oral
- Category
- Practical/ Demonstration, Presentation, Project, Role play/ Simulation
- Weight
- 20%
- Due date
2/09/2024 - 6/09/2024
Allocated time slot between 2/09/24 - 6/09/24
- Other conditions
- Student specific, Peer assessed.
- Learning outcomes
- L06
Task description
Student create teams early in the semester and get allocated a topic that they have to analyse using the tools from class. We recommend forming teams in tutorials, but you are allowed to form teams across tutorials as well. The task is to use the knowledge from the lecture / textbook material combined with very limited independent research to present their topic to their fellow students. A detailed task sheet / marking rubric will be provided 2 weeks before presentations start. The presentation time slot will be allocated in coordination with the teams' preference and is OUTSIDE of tutorial / lecture times. This presentation also serves as practice run for the more important end of semester presentation.
Duration:
6 minutes for a team of 3 students + 5 minutes question time (smaller / larger teams require written exception and time is adjusted proportionately, i.e. 2 minutes per student)
Format:
Students present in allocated time slots. Simply reading (e.g, notes) is not allowed. All team members shall participate equally.
All presentations are recorded.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance. A failure to reference AI use may constitute student misconduct under the Student Code of Conduct. To pass this assessment, students will be required to demonstrate detailed comprehension of their submission independent of AI tools.
Submission guidelines
Presentation will be given at allocated / chosen timeslot. The performance during that presentation and Q&A is marked. The slide set submission after the presentation is just a formality required to receive the marks from the actual presentation.
Deferral or extension
You may be able to apply for an extension.
Since this is a live team presentation in front of a live audience extensions can be granted only in exceptional circumstances and require a medical certificate for the presentation day. To ensure that medical certificates are not abused to gain more preparation time, the teams have to submit their prepared slide-set and the decision for the extension is based on the state of preparation. In case the medical certificate is covering at least 8 days before the due date, the team will be split up and an alternative oral assessment will be granted to the team member with medical certificate.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
This is a live presentation in front of a live audience.
Team Presentation 2
- Identity Verified
- Team or group-based
- In-person
- Mode
- Activity/ Performance, Oral
- Category
- Creative Production/ Exhibition, Performance, Practical/ Demonstration, Presentation, Project
- Weight
- 40%
- Due date
4/11/2024 - 15/11/2024
Allocated time slot during examination period
- Other conditions
- Student specific, Peer assessed.
- Learning outcomes
- L02, L03, L04, L05, L06
Task description
Students are allowed to use the same team as for presentation 1 or change teams. Each team will create / choose a specific topic in coordination with the lecturer / tutor to analyse and present. It is your job to impress us with your work using the analytical tools learned in class.
Duration:
12 minutes for a team of 3 students + 5 minutes question time (smaller / larger teams time is adjusted proportionately)
Format:
Students present in allocated time slots. Simply reading (e.g, notes) is not allowed. All team members shall participate equally.
All presentations are recorded.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance. A failure to reference AI use may constitute student misconduct under the Student Code of Conduct. To pass this assessment, students will be required to demonstrate detailed comprehension of their submission independent of AI tools.
Submission guidelines
After the presentation, the slides are uploaded on blackboard as a formality. The marks are determined by the actual presentation.
Deferral or extension
You may be able to apply for an extension.
Since this is a live team presentation in front of a live audience extensions can be granted only in exceptional circumstances and require a medical certificate for the presentation day. To ensure that medical certificates are not abused to gain more preparation time, the teams have to submit their prepared slide-set and the decision for the extension is based on the state of preparation. In case the medical certificate is covering at least 8 days before the due date, the team will be split up and an alternative oral assessment will be granted to the team member with medical certificate.
Late submission
You will receive a mark of 0 if this assessment is submitted late.
Course grading
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0% - 29% |
Absence of evidence of achievement of course learning outcomes. |
| 2 (Fail) | 30% - 46% |
Minimal evidence of achievement of course learning outcomes. |
| 3 (Marginal Fail) | 47% - 49% |
Demonstrated evidence of developing achievement of course learning outcomes |
| 4 (Pass) | 50% - 64% |
Demonstrated evidence of functional achievement of course learning outcomes. |
| 5 (Credit) | 65% - 74% |
Demonstrated evidence of proficient achievement of course learning outcomes. |
| 6 (Distinction) | 75% - 84% |
Demonstrated evidence of advanced achievement of course learning outcomes. |
| 7 (High Distinction) | 85% - 100% |
Demonstrated evidence of exceptional achievement of course learning outcomes. |
Additional course grading information
A student's final overall end of semester percentage mark will be rounded to determine their final grade. For example, 64.5% rounds to 65%, while 64.4% rounds to 64%.
Supplementary assessment
Supplementary assessment is available for this course.
Additional assessment information
Plagiarism
The School of Economics is committed to reducing the incidence of plagiarism. Further information on plagiarism and how to avoid an allegation of plagiarism is available in this course profile under Policies & Guidelines. Please refer to the Academic Integrity Module (AIM). It is strongly recommended that you complete the AIMﾠif you have not already done so.
Learning resources
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Library resources
Find the required and recommended resources for this course on the UQ Library website.
Additional learning resources information
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Learning activities
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
Please select
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 (22 Jul - 28 Jul) |
Lecture |
Lecture 1 The financial system & bond finance. Learning outcomes: L01, L02, L03, L04 |
Week 2 (29 Jul - 04 Aug) |
Lecture |
Lecture 2 Risk & term structure. Learning outcomes: L01, L02, L03 |
Week 3 (05 Aug - 11 Aug) |
Lecture |
Lecture 3 Equity finance & the share market. Learning outcomes: L01, L02, L03 |
Week 4 (12 Aug - 18 Aug) |
No student involvement (Breaks, information) |
Wednesday Royal Show - No lecture Students who normally attend a tutorial on Wednesday are invited to attend another tutorial for this week only. |
Week 5 (19 Aug - 25 Aug) |
Lecture |
Lecture 4 The FX market. Learning outcomes: L01, L02, L03 |
Week 6 (26 Aug - 01 Sep) |
Lecture |
Lecture 5 Derivatives. Learning outcomes: L01, L02, L03 |
Week 7 (02 Sep - 08 Sep) |
Lecture |
Lecture 6 Why do we have financial institutions? Learning outcomes: L01, L03, L04 |
Week 8 (09 Sep - 15 Sep) |
Lecture |
Lecture 7 Basic banking. Learning outcomes: L01, L02, L03, L04 |
Week 9 (16 Sep - 22 Sep) |
Lecture |
Lecture 8 Liquidity risk and money market. Learning outcomes: L01, L02, L03, L04, L05 |
Mid Sem break (23 Sep - 29 Sep) |
No student involvement (Breaks, information) |
Mid-Semester Break |
Week 10 (30 Sep - 06 Oct) |
Lecture |
Lecture 9 Solvency risk and bank regulation. Learning outcomes: L01, L02, L03, L04 |
Week 11 (07 Oct - 13 Oct) |
Lecture |
Lecture 10 Securitization and GFC. Learning outcomes: L01, L02, L03, L04 |
Week 12 (14 Oct - 20 Oct) |
Lecture |
Lecture 11 Current issues & monetary policy Learning outcomes: L01, L02, L03, L04, L05 |
Week 13 (21 Oct - 27 Oct) |
Lecture |
Review Lecture Current Issues and Review: Topics checklist and presentation preparation. Learning outcomes: L01, L02, L03, L04, L05 |
Policies and procedures
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
- Student Code of Conduct Policy
- Student Integrity and Misconduct Policy and Procedure
- Assessment Procedure
- Examinations Procedure
- Reasonable Adjustments - Students Policy and Procedure
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.