Survey of the Financial System
10-Week Graduate Course
Course Description: This postgraduate course provides a broad overview of financial markets and instruments. The first part covers the financial system and its core functions, interest rates, and term structure. The second part examines central banking, short-term interest rates, bond markets, equity markets, mortgage markets, and foreign exchange. The third part explores derivatives, risk management, financial intermediation, and market microstructure. The course includes interactive polls, case studies, and weekly academic paper readings. Students should have completed intermediate finance courses and possess strong quantitative skills.
Figure: The Flow-of-Funds Diagram
Notes. The flow of funds diagram illustrates the two primary channels through which funds move from lenders (surplus units) to borrowers (deficit units) in the financial system. The upper path shows indirect finance, where financial intermediaries such as banks, insurance companies, pension funds, and mutual funds collect funds from lenders and channel them to borrowers. The lower path depicts direct finance, where borrowers obtain funds directly from lenders through primary markets by issuing securities like bonds and stocks. Secondary markets provide liquidity by allowing lenders to trade these securities among themselves. The arrows indicate the direction of fund flows, with funds moving from left to right through either the intermediation channel or the direct finance channel.
Student Evaluations
| Year | Rating | Responses | Student Comment |
|---|---|---|---|
| 2024/25 | 4.9/5 | 68 | "Rory is great at explaining things and always make sure that we get the full information about the topic to his knowledge. Kind and understanding. Always look up at the condition of his students." |
| 2023/24 | 4.8/5 | 86 | "I believe he is the finest faculty that I was taught by in the first term. Knowledge of subject, attention to detail, motivation as well as effort were high throughout the course of the term." |
| 2022/23 | 4.9/5 | 116 | "Rory's module was the most well-thought-out and structured module I have taken so far during my time at University. A combination of good explanations, well-structured material, and interactive seminars made this module super interesting!" |
| 2021/22 | 4.7/5 | 66 | "Rory has put in a lot of effort to make the module as interactive and interesting as possible. He has also arranged the material in an outstanding manner which has made revision extemely covenient. Best professor!" |
| 2020/21 | 4.8/5 | 86 | "Rory has been the best module leader for this term in terms of explaining concepts and helping students whenever contacted. The forum was a great initiative for students to connect with him and understand the concepts better if in doubt." |