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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
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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
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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
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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
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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
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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
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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
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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
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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