Introduction to the external financial environment within which individuals and organizations operate. Topics include the nature and function of financial institutions, markets, and instruments; the determinants and mathematics of interest rates and bond prices; the management of financial institutions; bank safety, regulation, and deregulation; the Federal Reserve and monetary policy.
This course introduces students to the financial system in the United States. It discusses the fundamentals and role of money and capital markets, including the institutions operational in the markets, the instruments being traded, and the organization and regulation of the markets. Particular attention is devoted to commercial bank management, structure, and regulation, including the development of public policy towards banking, and to the globalization of financial markets. The organization, functioning and operation of the Federal Reserve System and the way that it interacts with the private financial sector through regulatory and monetary policies are analyzed. The theories developed in the class are brought to bear on current and recent financial and monetary problems, such as bank failures, the financial crisis of 2007-09, and inflation. The ethical dimensions of financial institution management are introduced and the short and long-run implicational analyzed. The focus is on developing responsible financial managers and leaders.
A basic textbook, study guide, plus supplementary handouts on current developments
What the Student "Takes-Away" from the Course
Lectures and class discussion; reading assignments; a few homework problems; visit to the Federal Reserve Bank of Chicago
A mid-term and a final examination.
Seven (7) short quizzes at end of all but first, midterm, and final exam classes.
Mid-term 30 %
Final Examination 40 %
Quizzes 25 %
Homework 5 %
Total 100 %
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