FNCR1201

This course introduces students to the economics of money and banking in the United States. The course aims to provide the student with an introduction 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 with topics that include bank management, bank's role as a creditor, banking relationships, products and services, regulations and the significance of banking behavior in monetary policy. (3) Examine the working 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

• Define money and explain its role in the economy
• Describe the working 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 the risk and return structure of interest rates to bank asset and liability management, portfolio choice, models of the demand for money, and other monetary theory topics.
• Describe what banks (depository, institutions) do, what their balance sheets look like and how they manage their assets and liabilities to make a profit.
• Analyze varying tools applied to financial statements used by bank management to uncover inside problems and how to deal with those problems.
• Examine the legal, ethical and regulatory environment in the banking industry.