Course Number and Title:
FIN 221 Money and Banking
Campus Location
- Dover
- Georgetown
- Wilmington
Prerequisites
Prerequisite: ECO 111 and (ENG 102 or higher)
Course Credits and Hours
3 credit(s)
3 lecture hours/week
0 lab hours/week
0 offsite lab hours
Course Description
This course introduces the fundamentals of money, banking, and financial markets and the process of analyzing financial decisions and policy outcomes. Students identify the roles of financial intermediaries and payment systems; apply time-value-of-money and interest-rate concepts to price bonds and stocks; examine risk and basic derivatives; and use real economic data (FRED) to interpret market conditions and exchange rates. Emphasis is placed on understanding central banking and monetary policy, financial stability, and ethical, evidence-based reasoning in financial analysis.
Core Course Performance Objectives (CCPOs)
- Analyze how the financial system moves money from savers to borrowers—through intermediaries, markets, and key instruments—in the U.S. and globally. (CCC 2, 5, 6; PGC 2, 5)
- Analyze money and the payments system to determine how monetary aggregates relate to economic activity. (CCC 2, 5, 6; PGC 3, 5)
- Analyze time-value-of-money and interest-rate concepts, including the risk and term structure, for financial valuation and decisions. (CCC 2, 6; PGC 2, 5)
- Evaluate risk, return, and valuation for bonds, stocks, and basic derivatives to inform investment decisions. (CCC 2, 4, 6; PGC 1, 2, 5)
- Analyze foreign exchange markets and international financial linkages. (CCC 2, 5, 6; PGC 2, 5)
- Evaluate central-bank organization, financial regulation, and monetary policy—including the money-supply process—and their macroeconomic effects. (CCC 2, 4, 5, 6; PGC 1, 2, 5)
See Core Curriculum Competencies and Program Graduate Competencies at the end of the syllabus. CCPOs are linked to every competency they develop.
Measurable Performance Objectives (MPOs)
Upon completion of this course, the student will:
- Analyze how the financial system moves money from savers to borrowers—through intermediaries, markets, and key instruments—in the U.S. and globally.
- Identify major financial intermediaries and their core functions.
- Describe common traits of intermediaries (e.g., maturity transformation, risk pooling, info processing).
- Differentiate types of intermediaries by distinctive features and risks.
- Classify markets as primary vs. secondary and money vs. capital using brief examples.
- Distinguish spot versus futures transactions by purpose and timing.
- Analyze a “flow of funds” scenario tracing capital from saver to borrower across intermediaries, markets, and instruments in U.S. and global settings.
- Analyze money and the payments system to determine how monetary aggregates relate to economic activity.
- Define money and explain its key functions in the economy.
- Describe the composition and measurement of monetary aggregates (M1, M2).
- Explain payment instruments and settlement flows.
- Interpret data on money supply and payments using sources such as FRED.
- Analyze time-value-of-money and interest-rate concepts, including the risk and term structure, for financial valuation and decisions.
- Compute present and future values for single and multiple cash flows.
- Calculate bond prices, yields, and discount factors using time-value principles.
- Explain the risk and term structure of interest rates.
- Analyze investment choices using time-value methods under different rate and term-structure scenarios.
- Evaluate risk, return, and valuation for bonds, stocks, and basic derivatives to inform investment decisions.
- Identify key financial risks (market, credit, liquidity, operational).
- Compute core risk–return metrics (expected return, standard deviation, beta, duration).
- Describe bond and stock cash-flow features and primary pricing drivers.
- Compute bond and equity values using basic models (present value/YTM, dividend models).
- Classify basic derivatives (futures, options, swaps) by purpose and payoff profile.
- Evaluate investment alternatives and recommend an option that aligns with a specified objective using computed risk–return metrics.
- Analyze foreign exchange markets and international financial linkages.
- Define nominal and real exchange rates and their measurement.
- Explain determinants of exchange-rate movements and currency valuation.
- Analyze how changes in income, interest rates, or inflation affect exchange rates.
- Compare basic exchange-rate regimes and their implications for trade and finance.
- Interpret international spillovers from domestic policy changes.
- Evaluate central-bank organization, financial regulation, and monetary policy—including the money-supply process—and their macroeconomic effects.
- Describe the structure and functions of major central banks (e.g., Federal Reserve, ECB).
- Describe policy tools (open-market operations, reserve requirements, discount rate, interest on reserves).
- Explain the money-supply process via central-bank and depository balance sheets.
- Explain transmission channels from policy to output, inflation, employment, and exchange rates.
- Summarize regulatory goals and supervisory frameworks.
- Evaluate alternative policy options for a stated macro scenario using evidence and stated criteria.
Evaluation Criteria/Policies
The grade will be determined using the Delaware Tech grading system:
| 90-100 |
= |
A |
| 80-89 |
= |
B |
| 70-79 |
= |
C |
| 0-69 |
= |
F |
Students should refer to the
Catalog/Student Handbook for information on the Academic Standing Policy, the Academic Integrity Policy, Student Rights and Responsibilities, and other policies relevant to their academic progress.
Final Course Grade
Calculated using the following weighted average
Evaluation Measure | Percentage of final grade |
Summative Assessments |
3-5 Exams (Equally Weighted) | 50% |
Policy Analysis Case Study Project | 10% |
Formative Assessments |
The course will contain various formative assessments including but not limited to: - Quizzes
- Assignments
- Discussion Boards
- Reflections
- Investment Simulation
| 40% |
TOTAL | 100% |
Program Graduate Competencies (PGCs are the competencies every graduate will develop specific to his or her major)
- Integrate professional, ethical, and legal standards into business decision-making.
- Apply foundational business concepts that lead to strategic thinking and the ability to analyze complex problems.
- Use professional and technology-based skills that are relevant to the dynamic business environment.
- Employ effective communication skills and collaboration strategies to promote positive organizational outcomes.
- Apply skills necessary to analyze and interpret business and financial data for decision-making purposes.
Core Curriculum Competencies (CCCs are the competencies every graduate will develop)
- Apply clear and effective communication skills.
- Use critical thinking to solve problems.
- Collaborate to achieve a common goal.
- Demonstrate professional and ethical conduct.
- Use information literacy for effective vocational and/or academic research.
- Apply quantitative reasoning and/or scientific inquiry to solve practical problems.
Students in Need of Accommodations Due to a Disability
We value all individuals and provide an inclusive environment that fosters equity and student success. The College is committed to providing reasonable accommodations for students with disabilities. Students are encouraged to schedule an appointment with the campus Disabilities Support Counselor to request an accommodation needed due to a disability. The College's policy on accommodations for persons with disabilities can be found in the College's Guide to Requesting Academic Accommodations and/or Auxiliary Aids Students may also access the Guide and contact information for Disabilities Support Counselors through the Student Resources web page under Disabilities Support Services, or visit the campus Advising Center.