BRC 2062 - Introduction to Financial Markets and Money

College of Business

Credit(s): 3
Contact Hours: 47
Effective Term Fall 2017 (535)

Course Description

This course examines the characteristics of money, monetary policy, and the Federal Reserve System. Students will further examine the saving and investment process, interest rates, and securities markets.

Learning Outcomes and Objectives

  1. The student will demonstrate an understanding of the money and the role of the financial sector by:
    1. defining money and describing the various functions and characteristics of money.
    2. describing the ways in which money is transferred from savers to investors.
    3. explaining why depository institutions are an important part of the monetary system.
    4. describing the role of the financial sector and intermediation.
    5. defining money supply and explaining the relationship between money supply and economic activity.
  2. The student will demonstrate an understanding of the history and functions of banks and the banking system by:
    1. describing the difference between commercial and investment banking.
    2. identifying the history and functions of banks and of the banking system.
    3. briefly describing the bank balance sheet and the major account categories that it contains.
  3. The student will demonstrate an understanding of the role of the Federal Reserve System, monetary policy, and the influence of monetary policy on money and financial markets by:
    1. identifying the weaknesses of the national banking system before the establishment of the Federal Reserve System.
    2. listing and explaining the characteristics, role, structure, and goals of the Federal Reserve System.
    3. explaining and analyzing the various tools and instruments that the Federal Reserve System may use to carry out its monetary policy.
    4. comparing and contrasting monetary policies and their influence on financial markets.
  4. The student will demonstrate an understanding of the savings and investment process by:
    1. identifying and briefly describing the major components of the gross domestic product.
    2. describing and explaining the historical role of savings in the United States and how financial assets and liabilities are created.
    3. identifying the major sources of savings in the United States and the factors that affect savings.
    4. explaining how funds flow from savings into investments.
  5. The student will demonstrate an understanding of the structure of interest rates, major determinant of market interest rates, and valuations by:
    1. describing how interest rates change in response to shifts in the supply and demand of loanable funds.
    2. identifying the major historical movements in interest rates in the United States.
    3. identifying the major determinants of market interest rates.
    4. explaining what is meant by the term or maturity structure of interest rates.
    5. performing time value of money calculations to determine present and future values.
  6. The student will demonstrate an understanding of the characteristics and valuation of stocks and bonds by:
    1. identifying the sources of external long-term financing for corporations.
    2. describing the major characteristics of corporate bonds, common stock, and preferred stock.
    3. explaining how financial securities, bonds, and stock are valued in financial markets.
  7. The student will demonstrate an understanding of primary and secondary securities markets as well as the major security market indexes by:
    1. describing the processes and institutions used by businesses to distribute new securities to the investing public.
    2. identifying and describing how securities are traded among investors.
    3. identifying the regulatory mechanisms by which the securities exchanges and the over-the-counter markets are controlled.
    4. recognizing the most prominent market indexes useful in keeping track of trends in overall market performance.

Criteria Performance Standard

Upon successful completion of the course the student will, with 70% accuracy, demonstrate mastery of the above stated objectives through classroom measurements developed by individual course instructors.

History of Changes

Submitted as BRC 2061, State approved as 2062. C&I Approval: 04/24/2007, BOT Approval: 06/19/2007, Effective Term: Fall 2007 (385).
C&I Approval: 02/09/2017, BOT Approval: 03/21/2017, Effective Term: Fall 2017 (535)

Related Programs

  1. Financial Technology Specialist (FINTECH-CT) (660) (Active)
  2. Financial Technology Specialist (FINTECH-CT) () (Draft)