CTE21.BMA.EFS.4a
Explain how supply and demand impact decisions in business.
Explain how supply and demand impact decisions in business.
Explain how supply and demand impact decisions in business.
Profit
Explain how the profit motive drives decisions in a capitalist economic system.
Examples: decisions involving personal investment, banking investment, or economic development
Describe the methods and sources available to corporations for raising capital.
Examples: bank loans, fundraisers, venture capitalists, internet sites, savings, friends, family members
Identify and share reasons for corporate efforts to raise capital.
Explain the role of securities in capital markets.
Trade
Explain the financial interdependence of nations.
Describe the effects of rising and falling exchange rates on the U.S. dollar.
Explain how businesses reduce the risk of exchange rate losses.
Examples: forwards and futures contracts
Describe the advantages and disadvantages of importing and exporting goods and explain the effect such trade has on the United States economy.
Discuss how outsourcing affects the supply of goods and services in the American economy.
Research and discuss the impact of trade barriers, including tariffs, on domestic and global markets.
Banking and Investment
Use various sources of information to gather data about specific investments, including stocks, bonds, mutual funds, and futures.
Examples: prospectus, online resources, financial publications
Identify and interpret financial data components found in various media sources.
Examples: stock price fluctuations, volume, trend graphs, dividends
Explain the importance of the interpretation of financial data and its impact on possible future investments.
Outline the growth and role of the banking system in America from its early years to the present.
Identify the major federal banking laws and their role in the financial services industry.
Identify emerging financial products and services offered by a variety of financial institutions.
Describe banking services provided in the American financial system.
Compare and contrast services provided by credit unions, full-service banks, investment banks, and on-line banking.
Identify financial services offered by major non-bank competitors.
Discuss the role of the Community Reinvestment Act in providing banking services to low- and moderate income communities.
Monetary Policy and Federal Reserve
Describe the role financial institutions play in economic growth and development.
Explain the role money plays in the American economic system.
Identify and explain the role the Federal Reserve System plays in American money, credit, and banking processes, including the effects of changes to monetary policies.
Example: prime interest rates
Consumer Economics
Interpret economic and financial data using correct terminology.
Example: reports of Gross Domestic Product, United States stock market data (Dow Jones Industrial Average, Nasdaq Composite Index, S&P 500 Index)
Describe the role of consumer credit in today’s economy.
Identify major providers of consumer credit.
Describe the impact of consumer debt on both the consumer and on the economy as a whole.
Differentiate between good and bad debt.
Identify the components of a credit report and explain the impact of credit scores on a consumer’s financial affairs.