SYLLABUS – FI363: Financial Institutions and Markets
School of Business and Management
Spring I 2005
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.
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COURSE TITLE: Financial Institutions and Markets
COURSE SYMBOL AND NUMBER: FI363
COURSE DESCRIPTOR: Financial Institutions & Markets examines the functions, activities and principles of domestic and international financial institutions and markets. Further, the course will explore how and why the system of money and capital markets is changing.
CLASS SESSION: S 8:00 a.m. – 1:00 p.m.
COURSE OBJECTIVES: At the conclusion of this course it is expected that a student will be able to:
- Discuss the money supply response to changes in key variables including the reserve ratio, the non-borrowed monetary base, the discount rate, the currency ratio, expected deposit outflows, and market interest rates.
- 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.
- Identify the tools, goals, and targets of monetary policy.
- Discuss the transmissions mechanisms of monetary policy.
- Discuss how asymmetric information, adverse selection, and moral hazard relate to banking regulation in the U.S. and abroad.
COURSE TEXTBOOK: Economics of Money, Banking, and Financial Markets
Frederic S. Mishkin, 7th Edition
ACADEMIC HONESTY: “Academic Honesty is required of all members of a learning community. Hence, Park will not tolerate cheating or plagiarism on tests, examinations, papers or other course assignments. Students who engage in such dishonesty may be given failing grades or expelled from Park.”
PLAGIARISM: Plagiarism—the appropriation or imitation of the language or ideas of another person and presenting them as one’s original work—sometimes occurs through carelessness or ignorance. Students who are uncertain about proper documentation of sources should consult their instructors.”
ATTENDANCE POLICY: Instructors are required to keep attendance records and report absences. The instructor may excuse absences for cogent reasons, but missed work must be made up within the term of enrollment. Work missed through unexcused absences must also be made up within the term of enrollment, but unexcused absences may carry further penalties. In the event of two consecutive weeks of unexcused absences in a term of enrollment, the student will be administratively withdrawn, resulting in a grade of “F”. An Incomplete will not be issued to a student who has unexcused or excessive absences recorded for a course. Students receiving Military Tuition Assistance (TA) or Veterans Administration (VA) educational benefits must not exceed three unexcused absences in the term of enrollment. Excessive absences will be reported to the appropriate agency and may result in a monetary penalty to the student. Reports of F grade (attendance or academic) resulting from excessive absence for students receiving financial assistance from agencies not mentioned above will be reported to the appropriate agency.
Incomplete grades will only be given due to unusual or emergency circumstances. Any incomplete must be completed by the end of the following semester.
Grades will be based on the following:
2 - Exams @ 100 points each
At the end of the course, your accumulated points will be converted to grades based on the following scale:
90% - 100% = A
80% - 89% = B
70% - 79% = C
60% - 69% = D
below 60% = F
If at the end of the course, if a significant number of students have not earned total points in the 90% - 100% range, the scale may be adjusted.
Missed Examinations: Make-up examinations will not be given.
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 American with Disabilities Act of 1990, regarding students with disabilities and, to the extent 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: www.park.edu/disability.
COURSE TOPICS/DATES/ASSIGNMENTS: (Subject to Change)
Week Topics Chapters
1 Why Study Money, Banking, and Financial Markets? 1
1 An Overview of the Financial System 2
1 What is Money? 3
2 Understanding Interest Rates 4
2 The Behavior of Interest Rates 5
3 The Risk and Term Structure of Interest Rates 6
3 Banking Industry: Structure and Competition 10
3 Review for Exam # 1
4 Test #1(Chapters 1-6, 10)
4 The Structure of Central Banks and the Federal Reserve System 14
5 Multiple Deposit Creation and the Money Supply Process 15
5 Determinants of the Money Supply 16
6 Tools of Monetary Policy 17
6 Conduct of Monetary Policy: Money Goal and Targets 18
7 The Demand for Money 21
7 Review for Final Exam
8 Test # 3 (Chapters 14-18 and 21)
8 Go over test and final grades