Module 6: Overview & Learning Objectives
Welcome to Module 6: Finance
Module 6 introduces many of the core concepts necessary to understand the money supply, financial institutions, critical components of the banking system, financial management, and the role of securities markets as a resource of business capital.
Chapter 15: Understanding Money & Financial Institutions
Because financial institutions connect people with money, Chapter 15 begins the module with a discussion of money, its characteristics and functions, and the components of the U.S. money supply. Money is anything that is acceptable as payment for goods and services. It affects our lives in many ways. Businesses and government use money in similar ways. Both require money to finance their operations. By controlling the amount of money in circulation, the federal government can promote economic growth and stability.
Learning Outcomes: After reading this chapter, you should be able to answer these questions:
- What is money, what are its characteristics and functions, and what are the three parts of the U.S. money supply?
- How does the Federal Reserve manage the money supply?
- What are the key financial institutions, and what role do they play in the process of financial intermediation?
- How does the Federal Deposit Insurance Corporation (FDIC) protect depositors’ funds?
- What roles do U.S. banks play in the international marketplace?
- What trends are reshaping financial institutions?
Chapter 16: Understanding Financial Management & Securities Markets
Financial information is central to every organization. To operate effectively, businesses must have a way to track income, expenses, assets, and liabilities in an organized manner. Accounting involves collecting, recording, classifying, summarizing, reporting, and analyzing a firm’s financial activities according to a standard set of procedures. The financial reports resulting from the accounting process give managers, employees, investors, customers, suppliers, creditors, and government agencies a way to analyze a company’s past, current, and future performance.
Learning Outcomes: After reading this chapter, you should be able to answer these questions:
- How do finance and the financial manager affect a firm’s overall strategy?
- What types of short-term and long-term expenditures does a firm make?
- What are the main sources and costs of unsecured and secured short-term financing?
- What are the key differences between debt and equity, and what are the major types and features of long-term debt?
- When and how do firms issue equity, and what are the costs?
- How do securities markets help firms raise funding, and what securities trade in the capital markets
- Where can investors buy and sell securities, and how are securities markets regulated?
- What are the current developments in financial management and the securities markets?
You will complete the following assignments:
- Read: Assigned textbook readings for Chs. 15 and 16
- Watch: Thirteen videos covering subtopics on the money supply; banking and financial institutions; and capital markets.
- Chapter quizzes for Chs. 15 and 16
- Exam 3: Covering Modules 4, 5, and 6 (marketing, information technology and accounting, and finance).