EC303 Money, Credit and Banking

for S2T 2007

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Mission Statement: The mission of Park University, an entrepreneurial institution of learning, is to provide access to academic excellence, which will prepare learners to think critically, communicate effectively and engage in lifelong learning while serving a global community.

Vision Statement: Park University will be a renowned international leader in providing innovative educational opportunities for learners within the global society.


EC 303 Money, Credit and Banking


S2T 2007 DL


George, Kelly A.


Adjunct Faculty


PhD International Business, in progress
MA, Applied Economics
BBA, Finance

Office Location

online only

Office Hours

8 a.m. - 7 p.m. EST

Daytime Phone



Semester Dates

March 19, 2007 to May 13, 2007

Class Days


Class Time



EC 141 and EC 142 or permission of the instructor

Credit Hours



Required Text The Economics of Money Banking and Financial Markets Author: Frederic S. Mishkin Pearson/Addison-Wesley, 7th Ed

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

McAfee Memorial Library - Online information, links, electronic databases and the Online catalog. Contact the library for further assistance via email or at 800-270-4347.
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Course Description:
A study of commercial banking, money markets, capital markets, monetary standards, foreign exchange; also, an analysis of the Federal Reserve System (central banking system) and its impact on the control of the money supply, and a survey of financial institutions. PREREQUISITES: EC 141 and EC 142 or permission of the instructor. 3:0:3

Educational Philosophy:

I educate and guide, not provide for pure rote. I don’t aim to make you happy. I aim to expand your understanding of the marketplace around you and how it affects you. I don’t intend to sell you something or some point of view – that’s for you to analyze. Although you do pay a lot, you are standing at the door of opportunity, I just provide you with the means of opening that door. You are the customer – my job is to help make you a better educated person so that you can be more productive and valuable in the future.
All of us experience economics everyday whether we realize it or not.  The best way to attract students to economics is to incorporate current events and popular news articles. Headlines which mention the unemployment rate, the release of the GDP growth rates, the increase in poverty rates, the size of trade deficit has reached its highest level, and other headlines.   These current events provide great classroom discussion to enhance the abstract concepts presented in the textbooks and lectures.  Once the discussion of these current events commences, the students realize that the economic principles and theories makes more sense than it does from reading the required readings.   Despite the incorporation of current events into the course discussion, the students still need to master the underlying economic theory and principles

 Come course evaluation time when I hear words like “hard work”, “punishing schedule”, impossible standards”, “exams from Hades” (just kidding); this is like music to my ears. When I hear words like “using this in my job”, “understand markets around me”, “likes the use of real world examples”, “never thought this would actually be interesting”; it’s like a choir of angels. But when I hear “waste of time”, “busy work” , “boring – snore bait”; you’ll get my attention. The worst thing I can do is waste both of our time and have you putting a check on the right block.

Learning Outcomes:
  Core Learning Outcomes

  1. Discuss the money supply response to changes in key variables including the reserve ratio, the nonborrowed monetary base, the discount rate, the currency ratio, expected deposit outflows, and market interest rates.
  2. Compare the Classical and Neoclassical (Monetarist) views of money demand with the Keynesian view, focusing on the role of interest rates and the debate surrounding the velocity of money.
  3. Identify the tools, goals, and targets of monetary policy.
  4. Analyze the transmissions mechanisms of monetary policy.
  5. Assess how asymmetric information, adverse selection, and moral hazard relate to banking regulation in the U.S. and abroad.
  6. Identify the causes of Financial Institution's failures.
  7. Discuss in depth how monetary policy affects the exchange rate.

Core Assessment:

All Park University courses must include a core assessment that measures the course Learning Outcomes.  The purpose of this assessment is to determine if expectations have been met concerning mastery of learning outcomes across all instructional modalities.  For this course, the core assessment is a final exam to be administered in all sections of EC 303.  This is NOT AN OPEN-BOOK EXAM  and is worth 20 percent of the student's final grade and will test students' mastery of nine core learning outcomes (Learning Outcomes 1-7 listed on the syllabus) through problem solving, short essay, and graphing questions.  For each core learning outcome, the student should be prepared to draw the relevant graph, define basic concepts or policies, identify relevant shifts in the curves, and state final impacts on relevant variables.

Class Assessment:

Each student is responsible for completing:  
Weekly reading assignments
Weekly written homework -discussion questions based on the assigned readings 
A term paper related to monetary economics
Proctored comprehensive final exam

Course-Specific Policies: This course is offered on-line, over the Internet, using the University Online computer service. Students are expected to devote a minimum of five hours per class week logged on to the computer conferencing system - the same amount of time you'd spend in the physical classroom. A class week is defined as the period of time between Monday and Sunday. The first week begins the first day of the semester and ends midnight on Sunday. Assignments scheduled for completion during a class week should be completed by the Sunday that ends the week. Writing assignments and projects/problems should be completed and successfully submitted so that they are in my hands on the due date.

NOTE: Because this is an online course designed to get feedback on assignments to you directly via Internet, you must make prior arrangements with me before submitting a paper via fax or any non-Internet method. If you ever have problems transmitting your assignments to me, contact me immediately, and we'll get the problem solved.

Homework:  Weekly assignments must be submitted not later than the Sunday midnight that ends the week. Late homework will not receive full grade credit. Homework not turned by the due date, but which is turned in no more then 7 days late, will receive 1/2 the score it would have received otherwise. Homework not received within 7 days of the due date will not be scored. No work received after the last Saturday of the online term will be scored.

Mid Term Examination:  A Mid Term Examination will be admisistered during the fourth week of the class. It will be posted into the eCollege Campus and is to be completed  alone and returned to the instructor via the eCollege testing system.

Comprehensive Examination:  A comprehensive examination must be taken in person at one of the Park University sites around the country or at an alternative location approved by the University and the instructor where Park University sites are not available. All Park sites are prepared to proctor exams and are the preferred choice. Unless you are more then two hours from a Park site, you are expected to use one of them to take your exam. (Exceptions will be carefully screened as per the directions I receive from the University. If your situation is exceptional, contact me before you submit your proctor form with details of your situation.) For these proctored examinations, photo identification is required. A proctor information form will be provided by Park at an address to be provided later. If you are unable to make arrangements with someone who meets these criteria, contact the instructor for acceptable alternatives. A proctor with email is much desired over one without email. Faxing and/or mailing are both relatively expensive, time consuming, and more prone to problems then email. You are NOT allowed to use your textbook, your laptop computer, or a cell phone during the comprehensive final examination.  The examination is NOT open book.

Instructor Response:  The Instructor will usually respond to your questions concerning the course within 48 hours of receipt.  Response is generally faster during the week and slower on the weekend. Students are responsible for clicking on the link below and thoroughly reading each Online course policy.  If you have questions about any of these policies, please contact your instructor for clarification.
Term Paper:   During the course, the student is required to complete a formal written assignment highlighting published current economic events or issues and explain how they relate to theories learned in this course. Basically, I want the student to realize and explain the economics that exist all around us.  A summary, topic, outline or abstract should be emailed to the instructor during the week of the midterm. This submission is not graded. My intention is to catch any problems or wrong directions early so that you can recover or get initial feedback on your ideas. Consider this a free test run. The paper will be due during the week 7. Early submissions of written assignments are always accepted. Submit the paper in .doc format to the Assignments option on the course website. Instructions for preparing these assignments are as follows:

Each paper is to be an analysis on the recent economic events or economic reports from the supplemental resources or references. The focus of this assignment is to relate and analyze current events to basic principles of Money, Credit, and Banking covered in this course. It is not acceptable to just regurgitate statistics. The student’s paper should indicate that he/she has a clear understanding of theory learned in class and its application/operation in the ‘outside world’.

 Papers should be submitted to the instructor in the class website via the dropbox option in .doc format. Standard margins apply. Papers should contain proper documentation of the article(s) or other references used. If direct quotes are used (not contained in the article), appropriate footnotes, endnotes, or parenthetical citations must accompany the quotes. Since a part of your paper will come from published sources, internet references, etc, there should be sufficient evidence of where the information for your paper originated. Paper length should be a few pages - short enough to qualify as a commentary but long enough to adequately address the subject. Typically, four to six double spaced pages are sufficient. Papers are graded on quality of content, not quantity. Standard APA English rules apply and clarity is important to your grade.


Evaluation Methods: the evaluation methods will be based on the following assignments and the percentage are given as follows:
Weekly Discussion Questions:  24.43 %
Conference Participation:         18.32 %
Midterm Examination:              19.08 %
Final Examination:                   20.04 % [the final examination is proctored]
Term Paper:                             18.13%
Total for Course                     100%          
Weekly Homework Discussion Questions     128 pts       
Conference Participation                                 96 pts       
Mid-Term Exam                                            100 pts       
Term Paper                                                   95 pts         
Proctored Comprehensive Final Exam          105 pts                                                                                                      
                      Total Points Possible              524 pts

Proctored final examination:  A final proctored examination will be taken in a proctored testing environment during the 8th week at one of the Park University sites around the country or at an alternative location.  For proctored examinations, photo identification is required at the time of the test.  Guidelines for selecting an acceptable proctor can be found on the Park University Website.  Students who do not pass the proctored final examination will not pass the course. Other Information on proctored exams: It will be the responsibility of the student to arrange for a proctor, by the 6th week of the term, who is accepted and approved by the course instructor. Students will lose participation points for their grade if their proctor form is not accepted and approved by the end of week 4 of the course.   Approval of proctors is the discretion of the Online instructor.   A proctor request form will be made available to you during the first week of class so that you can send your requested proctor to your instructor for approval.   Failure to take a final proctored exam (or submit your final project for some online graduate courses) will result in an automatic "F" grade.

Basis of Grades: Grades for work in this course will be calculated based upon the following rubrics:

Discussion Activities Grading:








Selection current items that relates to weekly topic






Identify weekly text contents in article






Calculations and graphs shown & correct






Analysis & conclusions shown and correct






Respond to at least 3 classmate’s postings






 Total points per week available





< 4 pts



Weekly Homework Assignment Grading:

There are 16  points possible each week..  The number of questions will vary each week. The following rubric indicates how the questions are graded:









Paper is properly formatted in either *.doc or *.rtf and each question response is identified






Identify weekly text contents in article






Calculations and graphs shown & correct






Analysis & conclusions shown and correct






Indicate how conclusion can/will affect the economy






 Total points per week available

16-13 pts


8-5 pts


< 2pts


Examination Grading: Examination question answers will be graded based upon agreement with the course text.  Essay, discussion, and similar type questions will be graded for completeness as well as for content.  The student should provide relevent calculations, economic charts and graphs for full credit. Completeness will follow the same factors as the grading for weekly homework as identified in the weekly assignment grading rubric above.

All final exams will be comprehensive and will be closed book and closed notes.  If calculators are allowed, they will not be multifunctional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth.  Electronic Computers will not be allowed on final exams unless an exception is made by the Associate Dean.

The Proctored final exam for online courses must be passed with a grade of 60% or higher in order to pass the course regardless of the overall average.  The grade for students who pass the proctored final will be based on the overall average of homework and tests taken during the course.  The proctored final exam must address only material which the student has been taught in class.

All final exams will be comprehensive and will be closed book and closed notes.  If calculators are allowed, they will not be multifunctional electronic devices that include features such as: phones, cameras, instant messaging, pagers, and so forth.  Electronic Computers will not be allowed on final exams unless an exception is made by the Associate Dean.

The Proctored final exam for online courses must be passed with a grade of 60% or higher in order to pass the course regardless of the overall average.  The grade for students who pass the proctored final will be based on the overall average of homework and tests taken during the course.  The proctored final exam must address only material which the student has been taught in class.

Late Submission of Course Materials:
Late submission of homework, discussion or group assignments will be downgraded one letter grade per each day it is late, per discresion of the instructor.

Classroom Rules of Conduct:

Park University wishes to promote a positive, collegial atmosphere among students faculty and staff.  The students should present his/her answers in a civial manner and respond to others in a civil manner.  Disruptive students will not be tolerated and will be dealt with.  Disruptive behavior may have sanctions ranging from a private email warning to reporting to the Academic Dean.

Also remember that computers make writing and revising much easier and more productive.  Students must recognize though that technology can also cause problems.  Printers run out of ink and hard drive crash.  Students must be responsible for planning ahead and meeting deadlines in spite of technology.  Be sure to save copies of your work to disk, hard drive, and print out paper copies for backup purposes.

Course Topic/Dates/Assignments:

Week 1 Introduction
Homework Questions and Participation
Week 2 Meaning of Money, its historical perspective/evolution and its functions
Homework Questions and Participation
Week 3 Four Major Players in Monetary System and Introduction to the FED
Homework Questions and Participation
Week 4 Determinants of Money Supply and Money Multiplier
Homework Questions and Participation
Midterm Examination
Week 5 Tools of Monetary Policy
Homework Questions and Participation
Week 6 Monetary and Fiscal Policy and IS LM Model
Homework Questions and Participation
Week 7 Transmission of Monetary Policy
Homework Questions and Participation
Term Paper
Week 8 International Perspective
Homework Questions and Participation
Final Examination (Proctored)

Academic Honesty:
Academic integrity is the foundation of the academic community. Because each student has the primary responsibility for being academically honest, students are advised to read and understand all sections of this policy relating to standards of conduct and academic life.   Park University 2006-2007 Undergraduate Catalog Page 87-89

Plagiarism involves the use of quotations without quotation marks, the use of quotations without indication of the source, the use of another's idea without acknowledging the source, the submission of a paper, laboratory report, project, or class assignment (any portion of such) prepared by another person, or incorrect paraphrasing. Park University 2006-2007 Undergraduate Catalog Page 87

Attendance Policy:
Instructors are required to maintain attendance records and to report absences via the online attendance reporting system.

  1. The instructor may excuse absences for valid reasons, but missed work must be made up within the semester/term of enrollment.
  2. Work missed through unexcused absences must also be made up within the semester/term of enrollment, but unexcused absences may carry further penalties.
  3. In the event of two consecutive weeks of unexcused absences in a semester/term of enrollment, the student will be administratively withdrawn, resulting in a grade of "W".
  4. A "Contract for Incomplete" will not be issued to a student who has unexcused or excessive absences recorded for a course.
  5. Students receiving Military Tuition Assistance or Veterans Administration educational benefits must not exceed three unexcused absences in the semester/term of enrollment. Excessive absences will be reported to the appropriate agency and may result in a monetary penalty to the student.
  6. Report of a "F" grade (attendance or academic) resulting from excessive absence for those students who are receiving financial assistance from agencies not mentioned in item 5 above will be reported to the appropriate agency.
ONLINE NOTE: An attendance report of "P" (present) will be recorded for students who have logged in to the Online classroom at least once during each week of the term. Recording of attendance is not equivalent to participation. Participation grades will be assigned by each instructor according to the criteria in the Grading Policy section of the syllabus.

Park University 2006-2007 Undergraduate Catalog Page 89-90

Disability Guidelines:
Park University is committed to meeting the needs of all students that meet the criteria for special assistance. These guidelines are designed to supply directions to students concerning the information necessary to accomplish this goal. It is Park University's policy to comply fully with federal and state law, including Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act of 1990, regarding students with disabilities. In the case of any inconsistency between these guidelines and federal and/or state law, the provisions of the law will apply. Additional information concerning Park University's policies and procedures related to disability can be found on the Park University web page: .


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Last Updated:3/7/2007 8:11:28 AM