Describe the role of the financial system.

Explain why direct financing transaction are more costly or inconvenient compared to intermediated transactions.

Explain how you believe economic activity would be affected if there were no financial markets and institutions.

Describe the main types of surplus spending units $($SSU$)$ and the deficit spending units $($SSU$).$ Explain how the typical householder may be a SSU while the typical business may be a DSU.

LESSON $2$

Describe the different types of financial institutions. Include a description of the main services offered by each.

What is meant by the term depository institution? How does a depository institution differ from an industrial corporation? Distinguish between deposit$-$taking and nondeposit$-$taking institutions.

Describe the primary goal of a commercial bank. Explain how this goal is translated into maximizing the bank's stock share price.

$,$ Explain why deposits are a more important source of funds for small banks than for large banks. Explain why deposits are considered to be a more stable source of funds for small banks than for large banks.

LESSON $3$

Discuss the financial intermediation process as it applies to insurance companies and pension funds.

Describe the economic benefits of insurance to individuals and to the economy.

Identify the objectives of insurance regulations. Describe the major insurance regulators in Barbados, The Republic of Trinidad and Tobago and Jamaica.

Distinguish between pure risks and speculative risks for an insurance company and give an example of each.

Describe the operations of a mutual fund and explain in what sense it is a financial institution.

$,$ Compare and contrast long$-$term mutual funds and money market mutual funds. In what assets do these funds usually invest? Describe the factors that caused the strong growth in money market funds over the period from $1992$ to $2009.$

Explain the difference between an open$-$end mutual fund and a closed$-$end mutual fund.