Course

10114117 Money and Banking
Course Information
Description
This course introduces analyzes the economics behind the financial markets and the banking system. Students will understand how monetary policy, the Federal Reserve and interest rates affect the economy. Included in the curriculum is a study of foreign markets, aggregate supply and demand curves and the pricing of risky financial assets. The student will analyze the impact of current economic conditions on both the domestic and global markets. Students will learn the different perspectives on economic theory, policy and the different implications.
Total Credits
3
Course Competencies (Course Outcomes)
  1. Understand the role of money in the macro-economy
    Assessment Strategies
    in the solution on a quiz, homework, project or exam
    Criteria
    you explain the supply and demand curve
    you understand the significance of the Gross Domestic Product
    you differentiate between the belief that prices are determined by costs of production vs supply and demand, labor and capital and their affect on the pricing system
    you identify major economic indicators

  2. Employ appropriate representations of financial data and market information
    Assessment Strategies
    in a completion of a 8-week progressive project utilizing Excel and several financial websites
    Criteria
    you create an Excel spreadsheet showing several indices, interest rates, or yields over a period of time; data is retrieved from financial websites.
    you construct meaningful graphic comparisons of the data using either a histogram, line graphs in a time series, pie charts in relative data or other representation.
    you document your findings in a report combining your excel charts and research information on your data.
    you present a summary of your project to the class using PowerPoint & other software

  3. Investigate different financial markets and portfolio theory
    Assessment Strategies
    in the solution on a quiz, homework, project or exam
    Criteria
    you understand the primary market
    you understand the secondary markets
    you understand equity investments
    you understand debt securities
    you recognize variations in the yield curve
    you evaluate the appropriateness of each financial asset for given situations, economic conditions and risk tolerance levels
    you can describe how to hedge using puts, call, forward, futures and interest rate swaps

  4. Understand Foreign Markets and Foreign Exchange
    Assessment Strategies
    by completion of a foreign currency research project
    by creating a paper to explain your data
    by creating a presentation which is presented to the class
    by creating an Excel spreadsheet charting global currencies against economic indicators
    Criteria
    you calculate returns in foreign markets
    you interpret foreign exchange rates and their movements in relation to economic indicators
    you calculate the range, mean and standard deviation of an exchange rate data set
    you identify international stocks to add to the previous portfolio project

  5. The Central Banking System
    Assessment Strategies
    in the solution on a quiz, homework, project or exam
    Criteria
    you understand the structure of the Federal Reserve System
    you understand movements in the Bank Reserves
    you understand current and historical monetary policy
    you interpret changes in money supply due to appropriate causes
    explain the regulatory functions of the Federal Reserve
    explain how the Fed influences money and credit conditions in the economy through open market operations
    explain how and why the Fed changes/controls interest rates
    explain how the Fed supervises banks