Module 15: Understanding Money and Financial Institutions
Section outline
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Advanced technology, globalization of markets, and the relaxation of regulatory restrictions continue to accelerate the pace of change in the financial services industry. These changes are giving businesses and consumers new options for conducting their financial transactions. The competitive landscape for financial institutions is also changing, creating new ways for these firms to increase their market share and boost profits.
This chapter focuses on the role of financial institutions in U.S. and international economies. It discusses different types of financial institutions, how they are set up and how they function internally, and government oversight of their operations. Because financial institutions connect people with money, this chapter begins with a discussion of money, its characteristics and functions, and the components of the U.S. money supply. Next, it explains the role of the Federal Reserve System in managing the money supply. Then it describes different types of financial institutions and their services and the organizations that insure customer deposits. The chapter ends with a discussion of international banking and trends in financial institutions.
Upon completion of this module, you will be able to:- Describe what is money, what are its characteristics and functions, and what are the three parts of the U.S. money supply.
- Explain how the Federal Reserve manage the money supply.
- Identify what are the key financial institutions, and what role do they play in the process of financial intermediation.
- Explain how the Federal Deposit Insurance Corporation (FDIC) protect depositors’ funds.
- Discuss the role U.S. banks play in the international marketplace.
- Argue how trends are reshaping financial institutions.
The objectives of this module correspond with the following course outcome(s):- Explain accounting and financial management including planning, budgeting, resource allocation, and sources of funding.
- Describe the ethical, regulatory, and social environments of business.
- Identify the fundamentals of entrepreneurship
- Read the Module 15 Introduction
- Read and view the materials in the Module 15 Pressbooks book
- Complete the Module 15 quiz.
- Complete the Module 15 Ethics Activity
- Compete the Module 15 Critical Thinking Case Group Assignment
Module Pressbooks Resources and Activities
You will find the following resources and activities in this module at the Pressbooks website. Click on the links below to access or complete each item.
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Students mustMark as done
This is a 25 question multiple choice and true / false test. It is worth 25 point and is based on your reading of the textbook. While you may return to previous questions before submitting your completed quiz, you will only be allowed to take and submit the exam once. Once you complete all 25 question, you will submit the quiz.
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