This course serves as an introduction to the financial system. It breaks down the financial system into its six elements: lenders & borrowers, financial intermediaries, financial instruments, financial markets, money creation and price discovery. It describes the non-financial surplus economic units (lenders) and the non-financial deficit economic units (borrowers), which are comprised of the four sectors of the economy: the household, corporate, government and foreign sectors, and direct (between ultimate lenders and borrowers), and indirect financing via the diverse financial intermediaries that exist. The financial markets (money, bond, forex, share/ stock) are given much attention as the avenues for bringing together lenders, borrowers and financial intermediaries. This is where price discovery takes place. Money creation is afforded special attention because this is a significant element of the financial system and the economy in that it is here where new debt instruments are created. This takes place in the money market, and it is here where the central bank intervenes in its function as the financial system referee. An understanding of the financial system is essential for participants in both the private and government sectors.