Course Title: Financial Markets

Part A: Course Overview

Course Title: Financial Markets

Credit Points: 12

Course Code




Learning Mode

Teaching Period(s)


City Campus


625H Economics, Finance & Marketing


Sem 1 2006,
Sem 1 2007,
Sem 1 2008,
Sem 1 2009,
Sem 1 2010,
Sem 1 2011,
Sem 1 2012,
Sem 1 2013,
Sem 1 2014,
Sem 1 2015,
Sem 2 2006,
Sem 2 2007,
Sem 2 2008,
Sem 2 2009,
Sem 2 2011,
Sem 2 2012,
Sem 2 2013,
Sem 2 2014,
Sem 2 2015


Hong Kong Management Associatn


625H Economics, Finance & Marketing


Offsh1 13


Kolej Metropolitan


625H Economics, Finance & Marketing


Offsh 1 09,
Offsh 3 09


Singapore Inst of Management


625H Economics, Finance & Marketing


Offsh 1 09,
Offsh 1 10,
Offsh 1 11,
Offsh1 12,
Offsh1 13,
Offsh1 14,
Offsh1 15,
Offsh3 12,
Offsh3 13,
Offsh3 14,
Offsh3 15


RMIT Intl University Vietnam


625H Economics, Finance & Marketing


Viet1 2012,
Viet1 2013,
Viet1 2014,
Viet1 2015,
Viet2 2012,
Viet2 2013,
Viet2 2014,
Viet2 2015,
Viet3 2011,
Viet3 2013,
Viet3 2014,
Viet3 2015

Course Coordinator: Dr. Larry Li

Course Coordinator Phone: +(61 3) 9925 5638

Course Coordinator

Pre-requisite Courses and Assumed Knowledge and Capabilities

None but completion of Macroeconomics 1 (BAFI1002/BAFI3216/BAFI2046/BAFI1005/BAFI3182) is recommended.

Course Description

Financial Markets is a first year course that introduces you to the financial markets environment in which business organisations operate. The course presents an overview of the financial system and its various financial markets, instruments and institutions. You will investigate the nature and role of the main financial markets within the domestic and global environment. Within this framework, the course is practically-based and enables you to critically analyse problems in real-life treasury dealing situations using live data. Students collaborate in small teams during those simulation sessions and report on their treasury dealing activities.

Objectives/Learning Outcomes/Capability Development


On successful completion of this program you will be able to:

  1. Identify the nature and key components of financial systems domestically and globally to apply in diverse contexts.
  2. Identify the nature, role and determinants of the structure and level of interest rates in economics and financial contexts.
  3. Demonstrate the basic financial mathematics applied to the pricing of money and capital market instruments.
  4. Analyze the characteristics and functions of the main financial intermediaries operating in financial systems in a global context.
  5. Assess the operations of the foreign exchange market including the nature and determinants of exchange rates and relevant investment strategies.
  6. Explore the main features of equity and derivatives markets from investors’ perspective.
  7. Work collaboratively in teams and communicate effectively during group treasury dealing activities.
  8. Consolidate the key components that constitute the activity in financial markets and what drives a live dealing room environment.

Overview of Learning Activities

To achieve the objectives of the course students must participate in various learning activities:

  • Attendance at, and note taking during, scheduled lectures.
  • Reading of, and note taking from, distributed material and prescribed text.
  • Completion of distributed tutorial/feedback questions.
  • Attendance at, and participation during, dealing sessions and tutorials.
  • Participation in individual learning activities including regular access to myRMIT.

Students are expected to conduct their own readings before attending the lectures and dealing sessions. The materials presented in the lectures and dealing sessions may be different from the materials students download from the Blackboard in terms of information format, breadth and depth. The materials used in the lectures and dealing sessions are specifically designed to explain and demonstrate key concepts and may not include all the details.

Overview of Learning Resources

  • MyRMIT
  • Thomson Reuters Eikon (RTF)
  • A number of External Links are found on the Learning Hub. Secondly, other External Links are categorised into three major sections:
  1. Daily Newspapers and Business Magazines
  2. Financial Markets
  3. International Finance Associations

Highly recommended references:
Viney C. and Phillips, P., Financial Institutions, Instruments and Markets, 7th Edition, McGraw Hill Book Company, Australia, 2012.

Other recommended references:
Hunt, B. & Terry, C.V., Financial Institutions and Markets, Sixth Edition, Cengage, Australia, 2011.
Valentine, T., Financial Markets and Institutions in Australia, 3rd Edition, Pearson Prentice Hall, Australia, 2010.

The prescribed textbook is an integral part of the subject and will help students to further their understanding of the different topics covered within this course.

Resources are also available online through RMIT Library databases and other facilities. If you require assistance with the RMIT library facilities contact the Business Liaison Librarian for your school. Contact details for Business Liaison Librarians are located online on the RMIT Library website.

Additional resources and/or sources to assist your learning will be identified by your course coordinator will be made available to you as required during the teaching period.

Overview of Assessment

The assessment alignment list below shows the assessment tasks against the learning outcomes they develop.

Assessment Task 1: 20%
Linked CLOs: 1, 2, 3, 4

Assessment Task 2:
Linked CLOs: 3, 4, 5, 6

Final Exam: 50%
Linked CLOs: 2, 5, 7, 8