Principles of Banking & Finance

Principles of Banking and Finance explores topics within their larger economic context. Students explore the choices they face as producers, consumers, investors, and taxpayers, and apply what they learn to real-world simulation problems.

Topics of study include markets from historic and contemporary perspectives, supply and demand, theories of early economic philosophers, theories of value, money (what it is, how it evolved, and the role of banks, investment houses, and the Federal Reserve), Keynesian economics, how capitalism functions, focusing on productivity, wages, investment, and growth, issues of capitalism (unemployment, inflation, and national debt), and a survey of global markets. In addition, students learn financial literacy skills with an emphasis on investments, markets, and taxation.

Building on the broader economic emphasis of the first semester, the second semester of this course narrows its focus to explore more specific issues and elements that comprise the world of banking and finance. Students learn about different types of banks, their employees, and the different tasks they perform.

Lessons cover how businesses use banks in their transactions, the accounting methods used in banking transactions, risks that financial institutions face and how they manage those risks, regulations and the importance of compliance, and the role of leadership in business and banking.

Students will furthermore explore ways to finance a business (including the role of bank loans) and how financial ratios are used to analyze a company’s performance. A series of in-depth projects provide opportunities to apply the concepts taught throughout this semester. Finally, this course discusses career opportunities and the responsibilities of both employers and employees.