STANDARD COMPETENCIES:

 

 I.      Demonstrate an understanding of the functions and uses of money.

 II.     Demonstrate an understanding of the nature and importance of the types of money and payment devices used in the United States today.

 III.    Define gross domestic product and other customary measures of U.S. economic activity.

 IV.     Compare the role of banks, other financial intermediaries and brokers and dealers in our economy.

 V.      Explain how the Federal Reserve uses its monetary policy to achieve economic balance and how the impact of monetary policy differs among various borrowers in the credit markets.

 VI.     Describe the principal financial intermediaries in the U.S. today.

 VII.    Summarize how increased competition in the 1980s and 1990s changed the business orientation of banks, thrifts, and other intermediaries.

 VIII.   Distinguish between demand deposit accounts, savings and time deposit accounts, NOW accounts and money market deposit accounts.

 IX.     Compare the relative importance of the major deposit liabilities of commercial banks.

 X       Identify recent changes in banking laws and regulations that significantly affect the nature of bank deposits.

 XI.     Explain how the banking system creates money through multiple deposit creation.

 XII.    Contrast the lending process of a commercial bank with other financial intermediaries.

 XIII.   Describe how banks gain and lose reserves, and how these reserve changes affect bank lending and economic activity.

 XIV.    Evaluate the role of banks in implementing monetary policy.

 XV.     Demonstrate an understanding of the Federal Reserve System, why it was established, its functions and its unique structural characteristics.

 XVI.    Explain how members of the Board of Governors, the Federal Open Market Committee and directors of the 12 Federal Reserve banks are selected and the special function of the Federal Reserve Bank of New York.

 XVII.   Describe the different monetary tools used by the Federal Reserve System in controlling the money supply.

 XVIII.  Differentiate between monetary and fiscal policy and the blend of the two that best counters inflation and recession.

 XIX.    Explain how the U.S. payments mechanism differs from most other industrialized nations.

 XX      Describe the check collection process and how banks process and manage check data.

 XXI.    Distinguish between Federal Reserve float and bank float.

 XXII.   Describe major wholesale and retail electron funds transfer systems and services.

 XXIII.  Demonstrate an understanding of a bank¿s balance sheet and income state and how bank¿s manage and allocate their funds.

 XXIV.   Explain the major goals of bank regulation and the regulatory agencies involved.

 XXV.    Summarize the major strategies banks are implementing to improve profitability.

 XXVI.   Describe how the Federal Reserve determines monetary policy objectives.

 XXVII.  Identify ways that asset/liability management strategies affect monetary policy control.

 TOPICAL OUTLINE:

 

 I.      Money

 II.     Financial Intermediaries

 III.    Commercial Banks and Money Creation

 IV.     Money Creation

 V.      The Federal Reserve

 VI.     The Tools of Monetary and Fiscal Policy

 VII.    Monetary Policy Tools

 VIII.   Commercial Banks and Monetary Policy

 IX.     Bank Operations and Payments

 X       The Banks as a Business Firm

 XI.     Banks as Businesses

 XII.    Bank Regulation

 XIII.   Trends and Issues in Banking

 XIV.    Monetary Theory

 XV.     Policy Goals/The Banking System

 XVI.    Balance of Payments/Foreign Exchange

 XVII.   The Role of Banks Internationally