Course coordinator
Dr Frederique Bracoud
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
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 financial markets and institutions. The content blends economics-relevant and business-relevant topics to enhance graduate employability and capturesﾠthe 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 in a coherent and unified framework.ﾠThis approach allowsﾠto debunk myths and addressﾠmisconceptionsﾠthat are widespread in the media, especially concerning 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 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 problems. They then attend a two-hour tutorial where many group activities and discussions take place to apply the knowledge to problems. We 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, when needed, 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 assignments, attendanceﾠis highly recommended.
The self study online material for each topic has been divided into 3 to 5 subsections that are 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 Frederique 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 recently 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 Sophia Psaros
Miss Serena Huang
Miss Jayde Keijer
Mr Lev Marienbakh
Mr Sanjeev Raju
Mr Joshua Venables
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. The timetable is published through the UQ Public Timetable found in the APPs section of myUQ.ﾠ
Tutorials start in teaching week 1 and stop after week 12.ﾠ
All assessment dates are already scheduled (see Assessment section). Please write down all these dates in your personal diary at once. Block also in your diary the days during which you will need to revise to prepareﾠfor each assessment.
Please see the Learning Activities section of this Course Profile for the timetabling implications of public holidays.
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.
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 |
|---|---|---|---|
| Essay/ Critique, Quiz, Tutorial/ Problem Set |
open book unsupervised no timer
|
20% |
23/08/2024 - 26/08/2024
The Bb test must be submitted by 10am on Monday 26th August 2024. |
| Essay/ Critique, Quiz, Tutorial/ Problem Set |
Online Open book unsupervised timed exam
|
35% |
16/09/2024 7:55 pm
The Bb test must be submitted by 19:55 on Monday 16th September 2024. |
| Examination |
Closed book supervised exam
|
45% |
End of Semester Exam Period 2/11/2024 - 16/11/2024 |
Assessment details
open book unsupervised no timer
- Online
- Mode
- Written
- Category
- Essay/ Critique, Quiz, Tutorial/ Problem Set
- Weight
- 20%
- Due date
23/08/2024 - 26/08/2024
The Bb test must be submitted by 10am on Monday 26th August 2024.
Task description
This is a Bb test without a timer, available over a 3 day window from Friday 23rd August 2024 10am to Monday 26th August 2024 10am.
It covers topics 0, 1, 2 and 3 and comprises Part A) a few MCQ Part B) short exercises of the same nature as in tutorials with, however, different questions and Part C) critical writing questions with one statement to assess as true, false or unclear (and more importantly to justify) and 1 short extract/issue taken from media to explain and assess using the content of the course.
The writing standards are very high in this 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 the most. More information will be provided closer to the date.
See more information and advice on assignment format on Bb under Assessment closer to the date.
This assessment task evaluates students' abilities, skills and knowledge without the aid of Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Blackboard
Deferral or extension
You may be able to apply for an extension.
Extensions cannot exceed the number of days you suffered from a medical condition, as stated on the medical certificate and will not exceed 7 days so results and feedback can be given to the cohort on time for the mid term exam.
Late submission
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Online Open book unsupervised timed exam
- Online
- Mode
- Written
- Category
- Essay/ Critique, Quiz, Tutorial/ Problem Set
- Weight
- 35%
- Due date
16/09/2024 7:55 pm
The Bb test must be submitted by 19:55 on Monday 16th September 2024.
Task description
This assessment is a open-book, unsupervised online exam with a timer of 115 minutes (10mn reading time + 90mn working time + 15mn uploading 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 3-6. Note that topic 3 is assessed twice. 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 evaluates students' abilities, skills and knowledge without the aid of Artificial Intelligence (AI). Students are advised that the use of AI technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Submission guidelines
Blackboard
Deferral or extension
You may be able to defer this exam.
The deferred exam will be held on Tuesday 1st October 2024 from 18:00-20:10.
Late submission
Exams submitted after the end of the submission time will incur a late penalty.
- Less than 5 minutes, 5%.
- From 5 minutes to less than 15 minutes, 20%.
- More than 15 minutes, 100%.
Closed book supervised exam
- In-person
- Mode
- Written
- Category
- Examination
- Weight
- 45%
- Due date
End of Semester Exam Period
2/11/2024 - 16/11/2024
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 7-11. It 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 Artificial Intelligence (AI) tools will not be permitted. Any attempted use of AI may constitute student misconduct under the Student Code of Conduct.
Exam details
| Planning time | 10 minutes |
|---|---|
| Duration | 180 minutes |
| Calculator options | Casio FX82 series calculator only |
| Open/closed book | Closed Book examination - specified written materials permitted |
| Materials | one sided sheet of hand-written notes in English; 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 Tuesday 10th - Friday 13th December 2024. 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
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 AIM if 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.
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 |
|---|---|
| Book |
Financial Markets and Institutions: a step-by-step analysis of core mechanisms
by Bracoud; Frederique - 2023 Publisher: UQ Pressbooks ISBN: 9781742723662 |
| 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.
ﾠ
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) |
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 (29 Jul - 04 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 (05 Aug - 11 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 |
|
Week 4 (12 Aug - 18 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 NOTE: Royal Queensland Show public holiday on Wednesday 14th August 2024; the tutorial that day is cancelled and students are encouraged to join any of the other tutorials. |
|
Week 5 (19 Aug - 25 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 (26 Aug - 01 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 (02 Sep - 08 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 (09 Sep - 15 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 (16 Sep - 22 Sep) |
Workshop |
Mid-Term Exam (online) No workshop NOTE: workshop is cancelled to accommodate the mid-term exam. |
Tutorial |
Topic 8 Basel Bank capital regulation |
|
Mid Sem break (23 Sep - 29 Sep) |
No student involvement (Breaks, information) |
No Workshop, no tutorials |
Week 10 (30 Sep - 06 Oct) |
Workshop |
Topic 7 Bank Financial Statements: Mark-to-market Accounting and Loan Default Accounting |
Tutorial |
Topic 9 Theories of Determination of Interest rates and Yield Curves: Expectations Theory and Liquidity Premium Theory |
|
Week 11 (07 Oct - 13 Oct) |
Workshop |
Topic 8 Basel Bank capital regulation NOTE: Public Holiday (Brisbane Royal Show) ; the workshop will be relocated to Tuesday 8th October 8:00-10am online |
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 (14 Oct - 20 Oct) |
Workshop |
Topic 9 Theories of Determination of Interest rates and Yield Curves: Expectations Theory and Liquidity Premium Theory |
Tutorial |
Topic 11 Implementation of Monetary Policy: Cash Rate Targeting and Quantitative Easing |
|
Week 13 (21 Oct - 27 Oct) |
Workshop |
Topic 10 & 11 Implementation of Monetary Policy: Central bank Balance Sheets, Tools of Monetary Policy and Determination of the Cash Rate in the Market for Reserves; Cash Rate Targeting and Quantitative Easing |
Tutorial |
No tutorials Consultations take place as usual. |
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.