Financial Literacy: Finding Your Way in the Financial Markets

Sometimes it's hard to see how the financial markets are connected to the "real" economy. What do financial markets actually do for us? Start to get a handle on how the financial markets operate through an exploration of the societal functions that financial assets perform and the way they're linked to real assets through contracts.

How much are the financial markets worth? Where does the money come from and where does it go? Learn how the stock market's value compares with other measures of the economy like America's national debt and GDP. Next, follow how money flows through the market to understand how trillions of dollars of assets are distributed between businesses, governments, and households.

There's one resource in the financial markets that's even scarcer than money or time: information. Discover the worst problems of asymmetric information and the way lenders build remedies to mitigate risk into the process of writing and trading financial contracts. Also, see how this information gap can work to your advantage.

Why does your bank offer free checking? How do banks make money? Discover the advantages banks have in lending to understand why they play such a dominant role in the markets. Learn how banks evolved from goldsmiths' vaults, how our payment system operates on a clearing house model, and more.