Revised 11/2024

ECO 230 - Survey of Money and Banking (3 CR.)

Course Description

Reviews history of American banking institutions, principles, and practices. Emphasizes the relationship of finances to business structure, operation, and organization. Examines present domestic and international financial structures, agents, problems, and institutions. Lecture 3 hours per week.

General Course Purpose

This course is designed to give students an understanding of the importance of a country’s banking system in influencing the functioning of its economy.

Course Prerequisites/Corequisites

Prerequisite: ECO 201

Course Objectives

Upon completing the course, the student will be able to:

• Outline current U.S. and international monetary systems
• Describe the formulation of monetary policy by the Federal Reserve System and its effects on the U.S. and world economies
• Analyze the behavior of financial institutions, financial markets, and asset prices, including how the financial system, financial markets, and asset prices relate to the real economy.
• Evaluate current problems and regulatory policies in the banking and thrift industries
• Understand the development and underdevelopment paradox Major Topics to be Included

Major Topics to Be Included

• Functions of money, money aggregates, and monetary policy tools
• Definition, purpose, and types of monetary policy, and how it relates to fiscal policy
• Definition, purpose, and functions of the Federal Reserve and the banking system. The role of the Federal Reserve and the banking system in the performance of the US economy
• Overview of financial institutions, instruments and markets
• Exploration of the main elements of international banking and the globalization of the financial system, including the purpose, definition, objectives, and functions of international banking and the definition and rationale for globalization of the financial system.