This course provides a solid foundation for further study or employment in the financial services industry to introduce the student to money, financial markets, financial institutions, and monetary policy in the economy. Further, the course examines the economic theory and institutions of banking and other forms of financial intermediation markets that channel savings into investment, the economics of financial crises, and the government's interaction with the financial system.
Prerequisite Courses
Prerequisites
(LIBR 150 may be taken concurrently).
Course Outcomes
After successfully completing the course, the learner will be able to:
- Identify the various functions of money and how money is associated to interest rates;
- Understand how interest rates are determined, as well as the behavior of interest rates, and the risk and term structures of interest rates.
- Demonstrate the value of financial markets and financial institutions in the domestic and international economies; identify the essential operations of depository institutions; justify why they are heavily regulated.
- Explain how a nation’s money supply is established; know the various tools of monetary policy, the role of central banks and the Federal Reserve System, and the conduct of monetary policy.
- Apply principles, theories and models to critically analyze and explain economic situations faced in the real world that involve money, financial markets and institutions, financial crisis, and actions assumed by central banks in the development and implementation of monetary policy.