10102128Financial Institutions
Course Information
Description
Introductory-level course which considers the role of financial institutions in the economy. Topics include financial intermediation, the Federal Reserve System, financial markets and instruments, and non-bank financial institutions, including savings and loan associations, credit unions, finance companies, insurance companies, pension funds, mutual funds and government financial institutions
Total Credits
3
Course Competencies
  1. Examine the role of financial markets and institutions in a modern economy
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you distinguish between direct and indirect finance
    you differentiate between fiscal policy and monetary policy
    you determine how money is measured

  2. Explain the role of the Federal Reserve Bank
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you explain the basic history of the Fed
    you explain the basic organization structure of the Fed
    you examine the basic functions of the Fed, including supervision, payment facilitation and U.S. fiscal agency
    you explore the major policy tools of the Fed
    you determine the intended impact of Fed actions on monetary policy

  3. Classify financial markets and instruments
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you characterize the money and capital markets
    you explore major money and capital market financial instruments
    you classify financial markets as primary or secondary markets
    you distinguish between the role of brokers and dealers in the financial markets

  4. Explain the major determinants of interest rates
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you explain the terms compounding and discounting and how it relates to interest rates
    you explain why interest rates and bond prices are inversely related
    you determine how the major determinants of interest rates impact the rates

  5. Examine the basic characteristics of the stock, bond and mortgage markets
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you use the terms basic stock, bond and mortgage appropriately
    you explain common bond provisions
    you distinguish between debt and equity markets
    you differentiate between common and preferred stock
    you distinguish between stock exchanges and over-the-counter markets
    you explain the basic characteristics of a mortgage
    you examine the different types of mortgages

  6. Characterize the major types of other financial intermediaries
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you distinguish the characteristics of finance, insurance, pension and mutual fund companies
    you explain the characteristics that differentiate non-depository institutions
    you explore the basic products and services provided by finance, insurance, pension and mutual fund companies
    you investigate the trends in finance, insurance, pension and mutual fund companies
    you summarize the major assets and liabilities of finance and insurance companies
    you explore the risks faced by depository institutions

  7. Characterize the major types of depository institutions
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you explore the characteristics common to all depository institutions
    you explore the characteristics that differentiate depository institutions
    you examine the trends in depository institutions
    you explore the major assets and liabilities of depository institutions
    you explain how the role of depository institutions has changed over the past 100 years
    you describe the risks faced by depository institutions

  8. Investigate financial market regulation
    Assessment Strategies
    by completing all homework when due
    Criteria
    you identify the major banking regulations
    you evaluate the advantages and disadvantages of regulations
    you investigate the impact of major regulations on the industry

  9. Utilize financial calculator in bond and mortgage applications
    Assessment Strategies
    by completing all homework when due
    by passing a closed book exam with at least 70% correct
    Criteria
    you compute the issue price of a bond using a financial calculator
    you compute the monthly payment of a mortgage