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Ch 19: Banking, Insurance & Monetary Policy

About This Chapter

If you need to study banking, insurance and monetary policy topics for an upcoming exam or assignment, then check out this engaging online study guide chapter. Inside, you'll find short finance lessons that are taught in an engaging and simplified instructional style.

Banking, Insurance & Monetary Policy - Chapter Summary

Work through this chapter at your own pace to study fundamental banking, insurance and monetary policy concepts. Taught by expert finance instructors, this chapter helps you review banking systems, the money market, financing options, investment programs and retirement compensation systems. The chapter also explores significant economic crises from U.S. history. Because there's a lot of information covered in the chapter, we've included short quizzes throughout so you can reinforce your understanding of these financial concepts. You can use any computer or mobile device to access these study resources, and when you're finished working through the chapter, you should be able to:

  • Compare types of banking systems
  • Analyze money supply and money demand curves in the money market
  • Identify sources of short-term and long-term financing
  • Differentiate between hedge funds and mutual funds
  • Identify mutual fund and exchange-traded fund investment opportunities
  • Evaluate insurance policies for risk management
  • Recognize different types of retirement compensation systems
  • Discuss the role and effects of monetary policy
  • Summarize the history of the Great Recession
  • Assess the American economy and government policy in 2008
  • Detail how the government protects money during a financial crisis

12 Lessons in Chapter 19: Banking, Insurance & Monetary Policy
Test your knowledge with a 30-question chapter practice test
Banking System: Definition & Types

1. Banking System: Definition & Types

Banks are a huge part of our lives. In this lesson, we will explore the banking system. We will learn about different types of banks as well as how they each function.

The Money Market: Money Supply and Money Demand Curves

2. The Money Market: Money Supply and Money Demand Curves

This lesson explores an economic model describing the supply and demand for money in a nation, referred to as the money market. It also describes the central bank's role in controlling the money supply, which impacts interest rates and the greater economy.

Sources of Short-Term Financing

3. Sources of Short-Term Financing

Companies often need to utilize financing to cover shortfalls in cash flow. In this lesson, you'll learn about sources of short-term financing available to companies including trade credit, lines of credit, bank loans and credit cards.

Sources of Long-Term Financing

4. Sources of Long-Term Financing

Some businesses require a large amount of capital to get off the ground or expand. In this lesson, you'll learn about sources of long-term financing, including commercial loans, selling equity and issuing debt.

What Is a Hedge Fund? - Definition, Structure & Examples

5. What Is a Hedge Fund? - Definition, Structure & Examples

In this lesson, we will discuss the nature of hedge funds, illustrate investment strategies, and reveal their appeal and controversy. We'll also make comparisons between a hedge fund and a mutual fund and present the overall structure of a hedge fund.

What is a Mutual Fund? - Definition, Types, Advantages & Examples

6. What is a Mutual Fund? - Definition, Types, Advantages & Examples

This lesson will define a mutual fund, a type of investment vehicle. Also in this lesson, various types of mutual funds will be explained, and advantages and examples of mutual funds will be explored.

Investment Opportunities in Mutual Funds and Exchange-Traded Funds

7. Investment Opportunities in Mutual Funds and Exchange-Traded Funds

Investing in the stock market is not limited to individual stocks. Investors can also invest in mutual funds and exchange-traded funds. In this lesson, you'll learn about these opportunities, as well as their advantages and disadvantages.

Retirement Compensation Systems: 401(k) and Pensions

8. Retirement Compensation Systems: 401(k) and Pensions

One of the most valuable benefits an employer may offer to employees are employer-sponsored retirement plans. In this lesson, you'll learn about two common retirement benefits: 401(k) plans and traditional pensions. A short quiz follows.

What is Monetary Policy? - Definition, Role & Effects

9. What is Monetary Policy? - Definition, Role & Effects

National governments have a couple of tools they can use to steer an economy. Monetary policy is one of those tools. In this lesson, you'll learn what monetary policy is and discover its role and its effects. A short quiz follows the lesson.

What was the Great Recession? - Timeline, Facts, Causes & Effects

10. What was the Great Recession? - Timeline, Facts, Causes & Effects

Beginning in 2007 and through 2009, the world economy was in turmoil. In this lesson, you'll learn about the Great Recession; why it happened, the events that made it worse, and what it meant to the United States and the world.

The American Economy & Government Policy in 2008

11. The American Economy & Government Policy in 2008

The rise of sub-prime mortgage loans and heightened real estate speculation led to the collapse of the housing market, which ushered in the Great Recession in 2007. Learn more about this economic downturn and its effects in this lesson.

How the Government Protects Your Money During a Financial Crisis

12. How the Government Protects Your Money During a Financial Crisis

In this lesson, you'll learn about some of the causes of the financial crisis of 2008 that brought us the Great Recession. You'll also learn what steps the federal government can take to help protect your money when the next financial crisis hits.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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