Why explain the institutions and markets that make up the financial system and how they impact the economy and the money supply?
All of the words that appear in the word cloud image refer to the same thing: MONEY.
Have you heard the saying “Money makes the world go around”? In many ways money drives almost all of our endeavors. Consider why you are here taking this course. You are obtaining knowledge in order to get a better job, to obtain a degree or other credential, or to be more informed in your daily life so that you can support yourself and provide for those you love. Even if you are interested in charitable endeavors to improve the human condition, such efforts to support a cause will require money—even indirectly. Understanding the institutions and markets that make up our financial system is the first step in being able to comprehend how these institutions control the money supply and ultimately the economy of our nation.
Learning Outcomes
- Explain the types, characteristics, and functions of money
- Describe the purpose of the Federal Reserve System and its role in controlling the money supply and influencing interest rates
- Describe the differences between the types of financial institutions including banks, credit unions, finance companies, securities markets
- Explain how technology is affecting the traditional monetary system and the definition of “money”
- Identify the securities exchanges (NYSE, OTC, NASDAQ) and the types of transactions that occur at each exchange
- Identify the potential risks and rewards to businesses and individuals associated with the issuance, purchase and sale of securities