In this course, we derive the supply and demand of finance from financial activities of various economic agents in an open economy framework; we study the connections among different elements such as money, credit, and their prices; we illustrate how the financial system works via financial institutions and markets; we explain how interest rates serves as the link between micro and macro finance; we cover theoretical and practical topics on macro finance from the perspectives of quantitative and structural balance; we discuss how macro control and financial regulations may achieve stable and efficient financial development. Over this course, students will have a comprehensive understanding of the basic theory of finance, learn current financial issues of China and the world, know how to analyze finance-related issues, and have the ability to study theories as well as solve practical problems.