1. EC4024
Lecture 3
The Structure of the
Financial System

2. Mini Presentations

3. Message

4. “Structure
Matters”

5. 1. Macro Structure
2 1
Financial
Real 4
Household Assets/
Activities 3 Liabilities
( )
5
Bonds
Stocks
Options
Mortgages
.....

6. 2. Firm Structure
2 1
Firm’s Financial 4 Investors
Activities 3 Management
( )
5
Individuals
Institutions
.....

7. Financial Decisions

8. Individuals With
Corps
Banks Markets Insurers
Others
Individuals without

9. I save, you invest

10. Handout

11. Next Time
Read Cowles, 1933, in coursepack
Mini Presentation is: