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Introduction to Banking - Revised

Learn more about basic banking practices and how they influence economies around the world, with this banking course.

Finances and Banking
Free Course
Banking is one of the key drivers of any country's economy. It allows for families to get mortgages, businesses to start up, and investments and savings to accrue as safely as possible. This makes banks major international institutions, with several modern banks operating globally and holding offices in key financial centres from New York to Hong Kong. This course will teach you the fundamentals of modern banking practices.
  • Duration

    5-6 Hours
  • Assessment

    Yes
  • Certification

    Yes
  • Responsive

    Yes
  • Publisher

    Khan Academy

Description

Outcome

Certification

View course modules

Description

There's a lot more to a bank than just depositing and withdrawing money. This course will give you an overview of how the banking system operates and introduce you to what a bank's income statement actually contains. You will also cover common terms used in banking such as multiplier effect, money supply, bank notes, and cheques, and learn their definitions and importance. You will then be guided through the important topics of loans and reserve ratios.

Leverage and treasuries are common banking terms that we often hear but do not fully understand. This course will give you a deeper understanding of these topics. You will study reserve banking, open market operations, fed funds rate, discount rate, and the federal reserve balance sheet. You will then be given an overview of federal reserve banking, deposit insurance, and the London Interbank Offer Rate (LIBOR) to help you understand their significance in the banking system.

The banking system plays an important role in the economic sector of every country in the world. It facilitates the flow of funds in the economy and ensures that financial resources are allocated efficiently towards promoting the development and growth of a nation. Whether we like it or not, banks are embedded in our everyday lives with activities like withdrawing salaries, paying bills, and depositing money as savings. By the end of this course, you will have a much better understanding of how this crucial element of modern life operates.

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Learning Outcomes

Have completed this course you will be able to:


  • Discuss fractional reserve banking.
  • Discuss fundamentally how a bank and banking system works.
  • Explain fundamental banking terms such as reserve ratio, liquidity, leverage, equity, etc.
  • Recognise how Fractional Reserve banking works. Review treasuries release by the US government.
  • Explain the difference between a repurchase agreement and loan collateral.
  • Explain what LIBOR is and how the banks make use of it.

Certification

All Alison courses are free to enrol, study and complete. To successfully complete this Certificate course and become an Alison Graduate, you need to achieve 80% or higher in each course assessment. Once you have completed this Certificate course, you have the option to acquire official Certification, which is a great way to share your achievement with the world. Your Alison Certification is:

Ideal for sharing with potential employers - include it in your CV, professional social media profiles and job applications
An indication of your commitment to continuously learn, upskill and achieve high results
An incentive for you to continue empowering yourself through lifelong learning

Alison offers 3 types of Certification for completed Certificate courses:

Digital Certificate - a downloadable Certificate in PDF format, immediately available to you when you complete your purchase
Certificate - a physical version of your officially branded and security-marked Certificate, posted to you with FREE shipping
Framed Certificate - a physical version of your officially branded and security-marked Certificate in a stylish frame, posted to you with FREE shipping

All Certification is available to purchase through the Alison Shop. For more information on purchasing Alison Certification, please visit our faqs. If you decide not to purchase your Alison Certification, you can still demonstrate your achievement by sharing your Learner Record or Learner Achievement Verification, both of which are accessible from your Dashboard. For more details on our Certification pricing, please visit our Pricing Page.

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