Financial Economics, 7.5 credits

Financial markets and institutions not only affect our everyday lives but also involve huge flows of funds throughout our economy, which in turn affects personal wealth, profits, consumers, and the entire country's economic well-being. This course examines how financial markets (such as those for bonds, stocks, and foreign exchange) and financial institutions (banks, insurance companies, mutual funds, and other institutions) work. Well-functioning financial markets are a key factor in producing high economic growth, and poorly performing financial markets are one reason that many countries in the world remain poor. Financial institutions also play a crucial role in improving the efficiency of the economy as they channel money from people who save to people who have productive investment opportunities.