FINC 335
Financial Markets and Institutions
- Catalog Entry
FINC 335. Financial Markets and Institutions
Three hours lecture (3).
Prerequisite: FINC 331
Examines markets and intermediaries that service the supply and demand for funds in the economy and assist individuals in reallocating consumption over time. Provides a broad introduction to the mechanics and structure of the financial system. The framework necessary to understand and the challenges encountered by a manager of a financial institution will be presented.
- Detailed Description of Content of Course
- Functions of Financial Markets
- Determination of Interest Rates
- Relationships Between Interest Rates and Security Prices.
- Financial Markets
- Money Markets
- Bond Markets
- Mortgage Markets
- Stock Markets
- Financial Futures Markets
- Options Markets
- Swap markets
- Financial Institutions
- Commercial Banks
- Thrift Institutions
- Credit Unions
- Investment Banks
- Insurance Companies
- Mutual Funds
- Pension Funds
- Government Influence
- Federal Reserve System and Monetary Policy
- Reserve Requirements
- Federal Deposit Insurance Corporation
- Futures Contracts: Descriptions and Applications
- Commodity Futures
- Interest Rate Futures
- Hedging Applications of Futures Contracts
- Detailed Description of Conduct of Course
Lectures on the above topics are supplemented with class discussion of current related events as reported in the business press. Students are encouraged to relate text materials to real-world activities
- Goals and Objectives of the Course
Having successfully completed the course, the student will be able to:
- Discuss in detail the operations of financial markets.
- Discuss the determination of interest rates as a function of allocating consumption over time.
- Identify and describe the various financial claims traded in domestic and international financial markets.
- Identify and describe the major financial institutions.
- Understand and describe government influence on financial markets and institutions.
- Describe the hedging of risks by financial institutions.
- Relate text materials to actual business practice.
- Assessment Measures
Graded assignments may include in-class tests, a final examination, pop quizzes, the assignment and presentation of problem exercises, papers, and class preparation and participation
- Other Course Information
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