Finance and Banking Module

Learning Outcomes:

1. Identify the functions & characteristics of money.

2. Summarize how the Federal Reserve System regulates money supply to keep economy healthy.
3. Describe the organizations involved and the services they supply in the banking and financial institution industry.
4. Explain how deposit insurance (FDIC) protects customers.
5. Discuss personal credit management.
6. Identify a firms short- and long-term financial needs.
7. Evaluate the advantages and disadvantages of equity financing.
8. Summarize the process of planning for financial management.
9. Explain how you can reduce investment risk with conservative investments and increase investment returns with speculative investments.
10. Discuss the 2007 Mortgage Crisis & 2008 Economic Crisis, and regulation that followed.

Key Terms/Concepts to Learn:

demand deposit Federal Reserve System credit unions

collateral savings & loan associations line of credit

Commercial bank electronic funds transfer (EFT)

financial plan budget federal funds rate

preferred stock prime interest rate initial public offering (IPO)

common stock investment banking securities exchange comm. (SEC)

financial leverage corporate bond municipal bond

Treasury & exchange Series EE bonds consumer credit

blue-chip stock Dow Jones Industrial Average

stock dividend Standard & Poors 500 Stock Index

mutual fund pension fund Federal Dep. Insurance Corp. (FDIC)

venture capitalist Equity financing Dutch auction

discount rate NASDAQ New York Stock Exchange (NYSE)

NCUA share insurance social security administration

Money

3 Functions

6 Characteristics

Specializations/Minors in Finance Area of Study:

Finance