The unit of study focuses on the operations of the financial system and management of money in a real economy with special reference to Australia. Topics include: the financial sector and the real economy; the evolution of the financial system; financial institutions and instruments; efficiency of the financial sector; monetary theory; and monetary policy. The unit will identify and promote the analytical skills required to assess the determinants, and impacts on the economy, of changes in monetary policy and interest rates.

Unit details

Study level:
Credit points:
Unit code:


BEO1105 - Economic Principles

BEO1103 - Microeconomic Principles or

BEO1104 - Macroeconomic Principles

Learning Outcomes

On successful completion of this unit, students will be able to:
  1. Analyse the operations of Australian and global financial systems;  
  2. Integrate conceptual and practical understandings of financial institutions in order to analyse the manner in which they operate;  
  3. Analyse the principles of monetary theory to explain the management of money in a real economy;  
  4. Analyse knowledge of commercial bank functions in order to understand their impact on the flow of funds; and  
  5. Work collaboratively in teams while exhibiting individual responsibility and accountability.  


Melbourne campuses

Students studying under the VU Block Model.

Assessment type Description Grade
Test In-class Test 20%
Test In-class Test 25%
Presentation Case Study Group Presentation 15%
Other Final Assessment - Journal & Test 40%

Other locations

Assessment type Description Grade
Test Mid Semester Test 20%
Assignment Group Assignment. 20%
Examination Final Exam 60%

Where to next?

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