These instruments are studied in the context of modern portfolio theory. Company and industry analysis projects provide the chance for practical experience. Money, liquidity, and credit enable economic exchange and the creation of value. This process does not occur in a vacuum and certain macroeconomic forces cannot be ignored. Of central importance is the role of government and its agent, the Federal Reserve System.
Financial institutions operate as micro units within a competitive, international structure.
Operating and ethical issues of financial institutions and markets are considered within their broader environment. In global financial markets, exchange rate risk exposure demands careful management and the use of financial instruments for hedging currency risk. These include currency options, futures, and swaps. Working capital management and long term financing and investment decisions are also crucial to today's financial managers and need to be understood in the context of expanding global financial markets. Practical situations are also considered in the use of options, interest rate swaps, and topics pertaining to the operations of depository institutions in a highly regulated and global environment.