Upon successful completion of this course, participants will be able to:

Chapter 1

• Identify the four phases of the business cycle
• Indicate how various economic conditions impact the business cycle
• Identify the types of economic indicators that exist and recognize the unique characteristics of each type
• Recognize tools that are currently available to monitor economic indicators

Chapter 2

• Identify the unique characteristics of financial markets
• Recognize the types of financial instruments traded in various financial markets
• Calculate ‘simple’ and ‘compound’ interest
• Identify how a bond’s stated interest rate and its yield-to-maturity impacts the price at which it is traded
• Recognize how interests can vary based on the risk structure of interest rates
• Identify how a yield curve illustrates the term structure of interest rates

Chapter 3

• Identify the components of gross domestic product (GDP) and recognize how economic indicators impact these components
• Calculate GDP
• Identify the difference between nominal and real GDP
• Recognize the economic impact of the GDP report

Chapter 4

• Recognize the role that the Federal Reserve System (‘the Fed’) plays in financial markets
• Identify the tools used by the Fed to conduct its monetary policy and explain how these tools impact the U.S. money supply
• Calculate the two measures used by the Federal Reserve to estimate the U.S. money supply (M1 & M2)
• Recognize the economic impact of the FOMC Statement and the other reports issued by the Fed

Chapter 5

• Calculate the unemployment rate and recognize the inherent limitations of the unemployment rate
• Recognize the characteristics and economic impact of the Employment Situation Report and other employment indicators
• Identify the methods in which consumer sentiment and consumer confidence are measured
• Identify how consumer income and spending is measured and presented on the Personal Income and Outlays report

Chapter 6

• Calculate an annual rate of inflation
• Identify the primary price indexes that measure inflation, including the CPI and PPI
• Recognize the impact that commodities markets have on inflation
• Recognize how economic growth is impacted by labor productivity
• Identify the economic indicators used to monitor productivity

Chapter 7

• Recognize the methods in which the Federal Reserve measures and reports industrial production and capacity utilization
• Identify industrial production indicators that have the most impact on the economy
• Recognize the impact that changes in the housing market has on the economy
• Identify the economic indicators used to monitor the housing market

Chapter 8

• Classify a country’s balance of trade as either a ‘trade surplus’ or a ‘trade deficit’
• Identify scenarios where one country has an absolute advantage and/or a comparative advantage in producing a good over another country
• Recognize the economic indicators used to monitor international trade