Welcome Miami Northwestern Bulls! Florida International University State Farm Financial Literacy Lab 1

Objectives: Basic financial concepts Research Learn financial concepts How to use financial tools How to valuate a company What is credit 2

Tools Research ▫What are we using? ▫Morningstar ▫The Wall Street Journal ▫Bloomberg.com ▫Yahoo finance 3

Economics What is economics? ▫The study of choices ▫1. What? ▫2. How? ▫3. For whom? Types of systems ▫Cavemen? ▫Government system ▫Market system ▫Mixed 4

The Players Savers Companies HouseholdsGovernment Financial Intermediary Capital MarketsBanksHedge FundsMutual FundsPension Funds Borrowers Government Companies Households Government 5

Economics Consumers Luxuries vs. Necessities 6

Economics Macroeconomics  GDP  Imports and Exports  Policies  Risks  Other countries 7

Economics Microeconomics ▫Markets?  Households  Firms ▫Supply and Demand  What effects supply and demand? 8

Policies Monetary Policy ▫What is monetary policy? ▫Who controls monetary policy? ▫What does monetary policy effect? Fiscal Policy ▫What is it? ▫When are we going to hear about it? 9

Interest Rates What is an interest rates? When do we see them? 10

Inflation Rate What does this even mean? When do we see inflation? Good or bad? 11