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Core Standards of the Course
Standard 1
Students will understand the role of financial services in the economy.
Objective 1
Understand legislative and regulatory changes affecting financial services and products.
Objective 2
Describe the various financial products and services available. (Deposit accounts, investments, insurance)
Objective 3
Identify the various interest rates, their relationships, and their impact on the economy, including the prime, discount, and the federal funds rate.
Objective 4
Define inflation, deflation, recession, and economic cycles and their impact on the economy.
Objective 5
Describe how a financial institution makes money; the role of savers and borrowers; and how the money supply impacts global economies.
Objective 6
Describe common deposit accounts offered by financial institutions (savings, CDs, checking, money market).
Standard 2
Students will understand terminology within the financial services industry and the available career opportunities.
Objective 1
Identify the differences between banks, credit unions, and other financial services institutions.
Objective 2
Explain the importance of insured deposits; who insures the deposits; and the limits of those insured deposits.
Objective 3
Define the purpose of the Federal Reserve as a central bank
Objective 4
Identify career opportunities in the financial services industry.
Standard 3
Students will understand credit and lending functions and products within the financial services industry.
Objective 1
Distinguish between open and revolving loans vs. closed and installment loans.
Objective 2
Understand what a mortgage is; types of mortgages, mortgage fees, and how to compare mortgages.
Objective 3
Describe the process of obtaining a loan.
Objective 4
Describe the requirements of lending institutions for credit approval, i.e., Character, Capacity, Collateral, Capital, Conditions.
Objective 5
Identify ways to establish and maintain a good credit rating; the role of credit bureaus; the debt-to-income ratio.
Objective 6
Describe laws and regulations that relate to lending.
Standard 4
Students will understand basic financial concepts.
Objective 1
Explain the concept of compound interest and simple interest and the importance of time in accumulating wealth. (APR & APY should be included in discussion)
Objective 2
Explain amortization and how interest rates affect the costs of loans.
Objective 3
Explain the risk/reward rule and identify potential exceptions and consequences as a result of understanding the rule.
Objective 4
Discuss the time value of money and the Rule of 72.
Objective 5
Understand tax implications of different financial products and services.
Standard 5
Students will understand the structure of the Securities Markets.
Objective 1
Identify the various securities products and offerings.
Objective 2
Explain the role of FINRA and SEC in regulating securities activities, insider trading, and securities fraud.
Objective 3
Identify the various securities exchanges and the differences between them including: New York Stock Exchange (NYSE), American Stock Exchange (AMEX), National Association of Securities Dealers Automated Quotation system (NASDAQ), and Chicago Board of Trade (CBOT), over-the-counter (OTC) and penny stocks, and regional exchanges.
Objective 4
Identify international securities exchanges and the international foreign exchange market.
Objective 5
Explain the importance and role of various tracking devices and indexes in the securities market.
Objective 6
Describe the process of executing a stock transaction and tracking your portfolio.
Objective 7
Identify the difference between a bull and a bear market.
Standard 6
Students will understand the process of valuing and selecting stocks and bonds.
Objective 1
Discuss various measurements of valuing a public company including: price earnings (PE) ratio, dividends, earnings per share (EPS), etc.
Objective 2
Identify the differences between common and preferred stocks.
Objective 3
Define margin and short selling and explain the effect it has upon investors.
Objective 4
Explain why stock prices change (supply, demand, stock splits, and current events).
Objective 5
Explain how to read and understand a stock quote.
Objective 6
Explain the concept of Dollar-Cost-Averaging and its use to minimize risk.
Objective 7
Describe the characteristics of Corporate Bonds, Convertible Bonds, Treasury Bills and Bonds, Savings Bonds, and Municipal Bonds.
Objective 8
Explain the reasons a company would issue Stocks (Equity) or Bonds (Debt) to raise needed funds.
Standard 7
Students will understand the process of valuing and selecting mutual funds and/or ETFs.
Objective 1
Describe the net asset value (NAV) as it relates to the daily valuing of a mutual fund.
Objective 2
Describe the advantages and disadvantages of investing via mutual funds and/or EFTs as opposed to investing directly via individual stocks.
Objective 3
Describe the different fees associated with investing and owning mutual funds and/or ETFs.
Objective 4
Explain what is meant by a Family of Funds, and the advantages and disadvantages of investing via one family.
Standard 8
Students will understand the role of insurance in the financial services industry.
Objective 1
Define insurance as it relates to the transfer of risk from one party to another.
Objective 2
Describe the regulatory environment of the insurance industry, and explain the role of the State Insurance Commission.
Objective 3
Identify and describe different types of insurance including, but not limited to, disability, auto, health, product liability, errors and omission, life, credit, homeowners, title, and mortgage.
Objective 4
Define basic terminology including, but not limited to, premium, grace period, riders, endorsements, deductibles, liability, and claim.
Objective 5
Describe the benefits and restrictions of Term life insurance.
Objective 6
Describe the characteristics of Whole Life and Universal Life insurance including face amount, cash value, premium, etc.
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