FNCR1201

This course introduces students to the economics of money and banking in the United States. The course introduces the student to the role of money, financial markets, financial institutions, and monetary policy in the economy, thus providing a solid foundation for further study or employment in the financial services industry. There are three main components of the course. (1) The role of financial markets in the economy with an emphasis on interest rate determination. (2) The changing role of financial institutions includes bank management, the bank's role as a creditor, banking relationships, products and services, regulations, and the significance of banking behavior in monetary policy. (3) The workings of fiscal and monetary policy, including money supply and creation, the powers and functions of the Federal Reserve System, and various monetary theories.Student Learning Outcomes

• Explain the role of money in the economy.
• Describe the workings of fiscal and monetary policy.
• Analyze the functions of financial markets, depository institutions, and the Federal Reserve System in the U.S. economy.
• Examine the economics of bank management and its role in affecting money supply.
• Apply interest rate risk and return structure to bank asset and liability management, portfolio choice, models of the demand for money, and other monetary theory topics.
• Describe how financial institutions manage assets and liabilities to make a profit.
• Analyze tools available to financial institution management to uncover and deal with internal problems.
• Examine the banking industry's legal, ethical, and regulatory environment.