Course Description

HISTORY AND EVOLUTION OF FINANCIAL INSTITUTIONS

10

0

0

History

Explain the uniqueness of the U.S. dual banking system.

Evolution

Describe the evolution of the system that regulates U.S. financial institutions.

Regulations

List the primary agencies that regulate commercial banks, savings institutions, and credit unions.

Growth

Name several benefits and drawbacks of the current regulatory system.

MONETARY INSTRUMENTS AND FLOW

20

0

0

Terms

Define terms related to monetary instruments and flow.

Functions

List three functions served by banks.

Money

Describe three basic functions of money.

Payments

Explain the evolution of the American payments system into its present form.

Money supply

List two approaches to measuring the money supply.

Distinguish among the four measures of money used by the Federal Reserve System.

Financial markets

Describe the basic function of financial markets.

List the four classifications of financial markets.

Explain the four characteristics of financial markets.

Financial intermediaries

Identify three major categories of financial intermediaries.

Explain why and how the government regulates financial markets.

Interest rates

List three methods of measuring interest rates.

Balance sheet

Explain the purpose of a bank's balance sheet.

List some assets and liabilities that make up a bank balance sheet.

Name several methods that can be used by banks to manage their assets and liabilities profitably.

Financial institutions

Differentiate among financial institutions handling of transaction accounts (i.e., thrifts, banks, and credit unions).

Nonbank financial institutions

Describe the purpose and general structure of pension plans.

List the types and purpose of finance companies, mutual funds, investment brokers, and insurance companies.

Technology

Explain how technological changes have resulted in financial innovations.

Regulations

Summarize financial services regulations during the past 20 years and the impact of these regulations on the financial services industry.

CENTRAL BANKING, OPERATION, AND POLICIES

20

0

0

Federal Reserve Act

Explain how and why the Federal Reserve System was established.

Describe the structure of the Federal Reserve System.

List ways the Federal Reserve controls the money supply.

Explain why the Board of Governors and the chairman of the Federal Reserve are so powerful.

Money supply

Describe the roles of the central bank, depository institutions, depositors, and borrowers in the money supply process.

Explain the impact of changes in the Federal Reserve balance sheet on the money supply.

Explain the impact of the behavior of banks, depositors, and borrowers on the money supply process.