FI363 Financial Institutions & Markets

for S2A 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.


FI 363 Financial Institutions and Markets


S2A 2007 BE


Lampton, Jolene A.


Assistant Professor of Management and Accounting


Ph.D. in Higher Education
MBA with specialization in finance; CPA
BSE in Business Education

Office Location

Austin Campus

Office Hours

3 - 5 Monday, Tuesday, Wednesday

Daytime Phone

512-385-7275 (office)

Other Phone

512-338-8155 (home)


Semester Dates

March 23 - May 11, 2007

Class Days


Class Time

5:10 - 10:20 PM



Credit Hours


Textbooks can be purchased through the MBS 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.
Career Counseling - The Career Development Center (CDC) provides services for all stages of career development.  The mission of the CDC is to provide the career planning tools to ensure a lifetime of career success.
Park Helpdesk - If you have forgotten your OPEN ID or Password, or need assistance with your PirateMail account, please email or call 800-927-3024
Resources for Current Students - A great place to look for all kinds of information

Course Description:
A study of the macrofinancial environment with emphasis on the structure, functions, and economic role of financial institutions and markets. This includes the role of commercial banks, the central banking system and international finance. PREREQUISITE: EC 301. 3:0:3

Educational Philosophy:

Instructor expects that students will read the material, do the assigned problems/cases, prepare for class, deliver presentations, and study all material so as to perform adequately.  Instructor will provide guidance needed and will go beyond the call; students must also.

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. Discuss the transmissions mechanisms of monetary policy.
  5. Discuss how asymmetric information, adverse selection, and moral hazard relate to banking regulation in the U.S. and abroad.
  6. Apply macroeconomic and monetary theory to a selected real world situation.

Core Assessment:


90% A; 80% B; 70% C; 60% D
2 Exams at 200 points each     400 points
Presentations of Chapters         100 points
Class involvement - participation
interaction, attendance              100 points
Portfolio - collection and
presentation of finance articles   200 points
   Total Points                            800 points

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.

Late Submission of Course Materials:
Allowed with permission of instructor.

Classroom Rules of Conduct:

Professional demeanor expected.

Course Topic/Dates/Assignments:

Week 1
Chapters 1 Role of Financial Markets and Institutions
#17 Advanced Question
Internet Exercise
Chapter 2 Determination of Interest Rates
WSJ Exercise
Week 2
Chapter 3 Structure of Interest Rates
#16 Global Interaction Among Yield Curves
Chapter 4 Functions of the Fed
Internet Exercise
Week 3
Chapter 5 Monetary Theory and Policy
Part II Integrative Problem
Chapter 6 Money Markets
Week 4
Mid Term Examination Chapters 1 - 6
Week 5
Chapter 10 Stock Offerings and Investor Monitoring
Point Counter Point
Chapter 11 Stock Valuation and Risk
Appendix 11
Discussion Questions
Week 6
Chapter 16 Foreign Exchange Derivative Markets
Discussion Questions
Chapter 17 Commercial Bank Operations
Internet Exercise
Appendix 17
Week 7
Chapter 18 Bank Regulation
WSJ Impact of Bank Regulations
Chapter 19 Bank Management
Internet Exercise
Week 8
Final Exam Chapters 10 - 19
Critique of Class
200 Points Possible
Students should collect 6 articles on topics related to the content of the class.  Articles should be current (within 1 year) and should be from reliable and reputable business sources, such as Wall Street Journal, The Economist, Harvard Business Review, Business Week, Journal of Accountancy, or from electronic databases, such as Proquest or Lexis/Nexis.  Each article is worth 33 points and will be evaluated on appropriateness, relevancy, and accuracy.  You should print the article and write a brief summary:  Limit 1 page per article.  You will also briefly present your article (each week) to the class with a 5-minute talk about the article.  The portfolio of articles will be due on May 8, 2007.  Total Portfolio is 200 points.

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.

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:2/12/2007 2:25:02 PM