Skip to menu Skip to content Skip to footer
Course profile

Financial Markets & Institutions (ECON3210)

Study period
Sem 2 2025
Location
St Lucia
Attendance mode
In Person

Course overview

Study period
Semester 2, 2025 (28/07/2025 - 22/11/2025)
Study level
Undergraduate
Location
St Lucia
Attendance mode
In Person
Units
2
Administrative campus
St Lucia
Coordinating unit
Economics School

Flow of funds and financial markets, theory and behaviour of interest rates, term and risk structure of interest rates, exchange rates, interest parity, expectations formation, equity markets, debt market, Euro markets, derivatives markets, social allocation of capital.

The course aims to provide a deep and thorough understanding of the payment system, financial markets and financial institutions. The content blends economics-relevant and business-relevant topics to enhance graduate employability and captures the current financial environment.ᅠThe methodology used to teach this course relies on an accounting-based representation of financial mechanisms with flow-of-fund diagrams and balance sheets, which provides a coherent and unified framework for all topics.ᅠThis approach allowsᅠto debunk myths and addressᅠmisconceptionsᅠthat are widespread in the media, and sometimes in textbooks, concerning in particular money and banks. The course covers among other topics central bank money and private money creation, auctions in bond markets, short selling, mark to market accounting, bank capital regulation, cash rate targeting policy and non-conventional monetary policies such as quantitative easing.

Blended - learning deliveryᅠ

The course is delivered in a blended learning mode. Students self study online at their own pace on UQ Extend the content through lecturer's videos, reading, MCQ and simple problems. They then attend a two-hour tutorial where many group activities and discussions take place to apply the knowledge to problems more difficult than the ones in the self study. The tutorials run a three-colour scheme, in which differentiated parallel tutorialᅠactivities accommodate all levels of preparation and confidence.ᅠFinally, students meet the course coordinator in the workshop the week after the tutorial. In these workshops, Frederique complements the online content with recent trends, critical thinking activities around articles and data, and more challenging problems than the ones seen in tutorials. As workshops prepare for the higher-orderᅠthinking questions of the assessment, attendanceᅠis highly recommended.

The self study online material for each topic has been divided into 3 to 5 subsections that are each self contained and can therefore be easily studied in separate short sessions. The self study content is released at least three weeks ahead of related tutorials to allow greater flexibility.ᅠ

Internal delivery

Tutorials, workshops and consultations are offered exclusively face to face on Campus.

The course coordinator

Dr Frédérique Bracoud, the course coordinator and lecturer, is a theoretical banking Microeconomist,ᅠtrained in France and Belgium, and has a long experience in teaching Financial Economics at introductory and advanced levels in the UK and in Australia.ᅠThe lecturer received a UQ Commendation for Outstanding Contribution to Student Learning (2023) and a BEL Employee Excellence award (2021) for the Three Colour Tutorial. She is the author of Financial markets and institutions: a step-by-step analysis of core mechanisms, an open access textbook at UQ Pressbooks, from which most readings for this course are extracted.ᅠ

Course requirements

Assumed background

The course ᅠis intended for students who wish to acquire a deep and analytical understanding of financial markets and institutions. It is essential therefore that students who take this course have been exposed to financial topics in previous courses. Please check the pre-requisites listed above, which should be completed before enrolling in this course. It is not recommended to take the pre-requisite courses during the same semester as ECON3210. Students have the opportunity to postpone the study ofᅠthe course to the Summer semester if they plan to attendᅠthe pre-requisite courses during Semester 2.

Prerequisites

You'll need to complete the following courses before enrolling in this one:

(ECON1010 or 1011) + (FINM1415 or 1416 or 2400 or 2401) or (ECON2011 + FINM2411) or (ECON2012 + FINM2412) or ECON2200

Recommended companion or co-requisite courses

We recommend completing the following courses at the same time:

ECON3550

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 econ3210@uq.edu.au.

Course staff

Lecturer

Dr Frederique Bracoud

Tutor

Miss Serena Huang
Miss Jayde Keijer
Mr Lev Marienbakh
Mr Joshua Venables
Miss Tia Fitzpatrick
Mr Josiah Ruthenberg

Timetable

The timetable for this course is available on the UQ Public Timetable.

Additional timetable information

Students are required to select their preferred class times through My Timetable and attend their allocated timeslot. Some formative assessment takes place in tutorials therefore enrolment in a tutorial group is essential. The timetable is published through the UQ Public Timetable found in the APPs section of myUQ.ᅠ

Tutorials and workshops start in teaching week 1 and run until teaching week 13 included.ᅠ

Please see the Learning Activities section of this Course Profile for the timetabling implications of public holidays.

Public Holidays: Wed 13 August (Royal Queensland Show), Mon 6 October (King's Birthday).

Mid-Semester Break: 29 September - 3 October. Semester 2 classes recommence Mon 7 October.

Students 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.

Aims and outcomes

This course aims to provide students with a thorough understanding of the foundations and core mechanisms of the financial system. It also intends to equip students with technical knowledge of the characteristics, products, and operations of major financial institutions and their roles in the economy. Lastly, it aims to empower students with tools that enable them to critically analyse contemporary real-world challenges in financial markets and institutions.

Learning outcomes

After successfully completing this course you should be able to:

LO1.

Identify and correct misconceptions and fallacies about the financial system embedded in financial arguments or discourses.

LO2.

Represent financial operations and discourses using an accounting framework to check their rigour and predict their impact.

LO3.

Apply economic theories such as demand-supply and arbitrage theories to the financial system to get a deeper understanding of financial matters.

LO4.

Understand and critically assess complex and recent financial developments in the financial system.

LO5.

Assess the immediate and later effects of monetary and macroprudential policies on the functioning of the financial markets and behaviours of financial institutions.

Assessment

Assessment summary

Category Assessment task Weight Due date
Quiz, Tutorial/ Problem Set Tutorial engagement quizzes
  • In-person
  • Online
20% (Best 8 of 12)

Due during the tutorials in weeks 1-12.

Essay/ Critique, Examination, Quiz, Tutorial/ Problem Set In-semester Exam
  • Identity Verified
  • In-person
20%

In-semester Saturday

6/09/2025 - 20/09/2025

Essay/ Critique, Examination, Quiz, Tutorial/ Problem Set End-of-semester Exam
  • Identity Verified
  • In-person
60%

End of Semester Exam Period

8/11/2025 - 22/11/2025

Assessment details

Tutorial engagement quizzes

  • In-person
  • Online
Mode
Written
Category
Quiz, Tutorial/ Problem Set
Weight
20% (Best 8 of 12)
Due date

Due during the tutorials in weeks 1-12.

Other conditions
Time limited.

See the conditions definitions

Task description

8 best tutorial online quizzes out of 12 (from week 1 to week 12) in person during the tutorials. These take the form of 1) multiple choice questions checking that the concepts covered in the tutorial have been understood and 2) a very short question, also related to the exercises solved in the tutorial. Trying the exercises with peers and being attentive during the tutorial should be enough to get full marks.

As these quizzes require to be taken in person (they are password protected and the password is changed at once), it is essential that you enrol in a tutorial slot that you can really attend. You can be absent to 4 tutorials without any consequence, so please do not contact us if you cannot make up your regular tutorial. You could check if there is a seat at another tutorial if you exceptionally cannot attend your regular one but do not wish to miss a quiz. Enrolled students in a class will always have priority.

This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) or Machine Translation (MT) tools will not be permitted. Any attempted use of AI or MT may constitute student misconduct under the Student Code of Conduct.

Submission guidelines

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.

Late submission is not technically possible as the quizzes are not available after the tutorial. Attendance is necessary to complete the quiz. You can miss 4 tutorials without any consequence. If you cannot attend your regular tutorial one week, you are welcome to attend another tutorial group provided that there are enough seats available.

In-semester Exam

  • Identity Verified
  • In-person
Mode
Written
Category
Essay/ Critique, Examination, Quiz, Tutorial/ Problem Set
Weight
20%
Due date

In-semester Saturday

6/09/2025 - 20/09/2025

Other conditions
Time limited, Secure.

See the conditions definitions

Task description

This assessment is a supervised in person exam of 100 minutes (10mn reading time + 90mn working time). 

Students must advise of and seek permission from employers for their study and examination commitments at the beginning of the semester as the usual demands of employment are not grounds for a deferred exam to be approved.

The exam covers topics 0 - 4 .The exam comprises 1) MCQ of the same nature of online tests 2) exercises of the same nature as in tutorials with, however, different questions and 3) critical writing questions around statements to assess as true, false or unclear (and more importantly to justify) and extracts taken from the media to explain and assess with the content of the course.

The writing standards are very high in the course. Very precise and complete answers are expected, with concepts to be defined before being used, choice of approach to be justified, all stages of calculation to be shown, and result to be interpreted. Giving directly a result with no details and explanations will give students half the marks at most. More information will be provided closer to the date.

See more information and advice on the mid-term exam format on Bb under Assessment closer to the date.

This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) or Machine Translation (MT) tools will not be permitted. Any attempted use of AI or MT may constitute student misconduct under the Student Code of Conduct.

Exam details

Planning time 10 minutes
Duration 90 minutes
Calculator options

(In person) Casio FX82 series only or UQ approved and labelled calculator

Open/closed book Closed book examination - specified written materials permitted
Materials

Bilingual dictionary

Exam platform Paper based
Invigilation

Invigilated in person

Submission guidelines

Deferral or extension

You may be able to defer this exam.

End-of-semester Exam

  • Identity Verified
  • In-person
Mode
Written
Category
Essay/ Critique, Examination, Quiz, Tutorial/ Problem Set
Weight
60%
Due date

End of Semester Exam Period

8/11/2025 - 22/11/2025

Other conditions
Time limited, Secure.

See the conditions definitions

Task description

This assessment is a closed-book, supervised exam held on Campus at a day and time scheduled by the University. 

Students must advise of and seek permission from employers for their study and examination commitments at the beginning of the semester as the usual demands of employment are not grounds for a deferred exam to be approved.

The exam covers topics 5-11. Be aware that given the interdependence among topics a good understanding of topics 0-3 is essential too. The final examination comprises 1) MCQ of the same nature as training tests 2) exercises of the same nature as in tutorials with, however, different questions and 3) critical writing questions around statements to assess as true, false or unclear (and more importantly to justify) and extracts taken from the media to explain and assess with the content of the course.

The writing standards are very high in the course. Very precise and complete answers are expected, with concepts to be defined before being used, choice of approach to be justified, all stages of calculation to be shown, and result to be interpreted. Giving directly a result with no details and explanations will give students half the marks at most. More information will be provided closer to the date.

See more information and advice on the final exam format on Bb under Assessment closer to the date.

This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) or Machine Translation (MT) tools will not be permitted. Any attempted use of AI or MT may constitute student misconduct under the Student Code of Conduct.

Exam details

Planning time 10 minutes
Duration 180 minutes
Calculator options

(In person) Casio FX82 series only or UQ approved and labelled calculator

Open/closed book Closed book examination - specified written materials permitted
Materials

bilingual dictionary

Exam platform Paper based
Invigilation

Invigilated in person

Submission guidelines

Deferral or extension

You may be able to defer this exam.

Deferred exam is run centrally during the period 16th - 19th December 2025. Students eligible for a deferred exam cannot graduate during the December graduation ceremonies.

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

Using AI at UQ

Visit the AI Student Hub for essential information on understanding and using Artificial Intelligence in your studies responsibly. 

Plagiarism

The School of Economics is committed to reducing the incidence of plagiarism. You are encouraged to read the UQ Student Integrity and Misconduct Policy available in the Policies and Procedures section of this course profile.

The Academic Integrity Module (AIM) outlines your obligations and responsibilities as a UQ student. It is compulsory for all new to UQ students to complete the AIM.

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.

Own copy required

You'll need to have your own copy of the following reading resources. We've indicated below if you need a personal copy of the reading materials or your own item.

Item Description
Document Regulatory Guide RG 196 Short Selling
Publisher: Australian Securities and Investments Commission
Document Australian Debt Securities and Corporate Bonds
by Australian Centre for Financial Studies; Davis; Kevin; Jenkinson; Martin - June 2015
Publisher: National Australia Bank

Additional learning resources information

All readings are available on UQ Extend platform, free of charge, and are located in the sections of the relevant topic. Readings are compulsory and their contents are assessable.

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
Clear filters
Learning period Activity type Topic
Week 1

(28 Jul - 03 Aug)

Workshop

Course presentation: UQ extend platform, blended learning delivery, assessment standards, and three-colour tutorials

Tutorial

Topic 0 Revision of fundamental concepts in finance: money, balance sheet in action, features of shares and bonds

Week 2

(04 Aug - 10 Aug)

Workshop

Topic 0 Revision of fundamental concepts in finance: money, balance sheet in action, features of shares and bonds

Tutorial

Topic 1 Lifecycle of a financial instrument in diagrams of flow of funds and in balance sheets

Week 3

(11 Aug - 17 Aug)

Workshop

Topic 1 Lifecycle of a financial instrument in diagrams of flow of funds and in balance sheets

Tutorial

Topic 2 The Payment system: the role of central bank money in settlement and creation and destruction of private money by banks

NOTE: Royal Queensland Show public holiday on Wednesday 13th August 2025; the tutorial that day is cancelled and students are encouraged to join any of the other tutorials.

Week 4

(18 Aug - 24 Aug)

Workshop

Topic 2 The Payment system: the role of central bank money in settlement and creation and destruction of private money by banks

Tutorial

Topic 3 The funding of the economy through direct finance, financial intermediation, and net creation of private money

Week 5

(25 Aug - 31 Aug)

Workshop

Topic 3 The funding of the economy through direct finance, financial intermediation, and net creation of private money

Tutorial

Topic 4 Advanced topics in Debt Markets: Government Bond Auction, Securitisation and Capital notes

Week 6

(01 Sep - 07 Sep)

Workshop

Topic 4 Advanced topics in Debt Markets: Government Bond Auction, Securitisation and Capital notes

Tutorial

Topic 5 Advanced topics in Equity Markets: Security lending and short selling

Week 7

(08 Sep - 14 Sep)

Workshop

Topic 5 Advanced topics in Equity Markets: Security lending and short selling

Tutorial

Topic 6 The Managed fund Industry: Managed funds, Hedge funds, ETF, XTB and mFunds

Week 8

(15 Sep - 21 Sep)

Workshop

Topic 6 The Managed fund Industry: Managed funds, Hedge funds, ETF, XTB and mFunds

Tutorial

Topic 7 Bank Financial Statements: Mark-to-market Accounting and Loan Default Accounting

Week 9

(22 Sep - 28 Sep)

Workshop

Topic 7 Bank Financial Statements: Mark-to-market Accounting and Loan Default Accounting

Tutorial

Topic 8 Basel Bank capital regulation

Mid Sem break

(29 Sep - 05 Oct)

No student involvement (Breaks, information)

No Workshop, no tutorials

Week 10

(06 Oct - 12 Oct)

Workshop

Topic 8 Basel Bank capital regulation

King's birthday on Monday therefore moved to online another day to be confirmed

Tutorial

Topic 9 Theories of Determination of Interest rates and Yield Curves: Expectations Theory and Liquidity Premium Theory

Week 11

(13 Oct - 19 Oct)

Workshop

Topic 9 Theories of Determination of Interest rates and Yield Curves: Expectations Theory and Liquidity Premium Theory

Tutorial

Topic 10 Implementation of Monetary Policy: Central bank Balance Sheets, Tools of Monetary Policy and Determination of the Cash Rate in the Market for Reserves

Week 12

(20 Oct - 26 Oct)

Workshop

Topic 10 Implementation of Monetary Policy: Central bank Balance Sheets, Tools of Monetary Policy and Determination of the Cash Rate in the Market for Reserves

Tutorial

Topic 11 Implementation of Monetary Policy: Cash Rate Targeting and Quantitative Easing

Week 13

(27 Oct - 02 Nov)

Workshop

Topic 11 Implementation of Monetary Policy: Cash Rate Targeting and Quantitative Easing

Tutorial

Practice mock exam

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:

Learn more about UQ policies on my.UQ and the Policy and Procedure Library.