This course is designed to introduce the theory and operation of the financial systems. Particular emphasis will be given to the operation of the financial system. Topics to be covered include the structure and operation of the Federal Reserve System (FRS), the functions and impact of non-bank financial institutions, the ongoing and significant institutional modifications occurring in the US and the global financial system, some basics of monetary and aggregate economic theory, and the conduct of monetary policy. The course assists students in understanding the relationships between economic variables, (prices, money stocks, output, and employment), and institutional entities, (Central Banks, Commercial Banks, Non-Bank Financial intermediaries, the Treasury, the FED, and the IMF, ECB). In addition, students will develop a set of tools for analyzing and evaluating changes in these economic and institutional variables. This course will prepare students for further study in international finance and banking.