The course I took this term on money and banking was very valuable to me. It taught me some very important things. One of the most important things I learned in this course is that the Federal Reserve is the best source of information about the economy. Another important thing I learned is that interest rates mean different things to different people. A third very important thing I learned is how a financial crisis can erupt in the United States. There is an abundance of information about our economy on television news, in newspapers and on the Internet. Many of these news stories are very confusing, especially when one article contains information that conflicts with another article. This sometimes happens in the same day. One day you may be watching the news and hearing that interest rates and inflation are going to rise soon and quickly, and the next minute you learn that interest rates and prices will stay under control for a while. time. To complicate matters further, the news is often clouded by opinions or prejudices. I learned in this course that the best way to get an accurate account of issues concerning the economy is to go directly to the source, which is the Federal Reserve. The Federal Reserve System is in the business of knowing where the economy is going and how monetary policy can affect the economy. The objectives of the Federal Reserve System include high employment, economic growth, and stability in financial markets, foreign exchange markets, prices, and interest rates. That being said, it has become clear to me that the Federal Reserve is the appropriate resource for questions regarding the economy. I can access their website at any time to find the latest... middle of paper...... up to par. Mortgage brokers allowed many high-risk borrowers to obtain loans they could not afford. When home prices fell, the value of those homes was far less than what was owed on the mortgages. This caused many borrowers to default on their loans. Before we knew it, bank balance sheets deteriorated, the stock market collapsed, and major investment banks began to fail. It all started with a financial innovation that got out of hand. Well, it was really hard to choose just three things that I thought were the most important things I learned in this course. In fact, I learned more in this course than any other course I have taken in my degree program to this point. Every topic was interesting, relevant and important. The three things I chose as most important to me impressed me the most.