FI363 Financial Institutions & Markets

for F1B 2006

Printer Friendly

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


F1B 2006 BL


Williams, Cynthia


Economics Instructor


M.S. Economics
B.B.A. Economics & Finance

Daytime Phone

564-5803 Box #600


Semester Dates

Fall I 2006

Class Days


Class Time

5:00 - 7:30 PM


EC 301

Credit Hours


Mishkin, Frederic S.; The Economics of Money, Banking, and Financial Markets; Addison Wesley; 7th Ed.

Textbooks can be purchased though 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

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:

Class Assessment:

Midterm Exam worth 100 points: 30%

Final Exam worth 100 points: 20%

Homework Sets(5) worth 100 points each: 50%


A 90-100

B 80-89

C 70-79

D 60-69

F 50-59

Classroom Rules of Conduct:
Students are encouraged to read the latest edition of the Park University Catalog for policies, procedures, and rules concerning student behavior and responsibilities.

Course Topic/Dates/Assignments:

Why Study Money, Banking, and Financial Markets?/31 July/Ch.1

An Overview of the Financial System/What Is Money?/2 Aug/Chs.2,3

Understanding Interest Rates/The Behavior of Interest Rates/7 Aug/Chs.4,5

The Risk and Term Structure of Interest Rates/9 Aug/Ch.6

The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis/Banking and the Management of Financial Institutions/14 Aug/Chs.7,9

Review for Midterm Exam/16 Aug

Midterm Exam/Homework Sets #1,2,3/21 Aug

Banking Industry: Structure and Competition/Structure of Central Banks and the Federal Reserve System/23 Aug/Chs.10,14

Multiple Deposit Creation and the Money Supply Process/Determinants of Money Supply/28 Aug/Chs.15,16

Tools of Monetary Policy/Conduct of Monetary Policy: Goals and Targets/30 Aug/Chs.17,18

The Demand for Money/4 Sept/Ch.22

The Keynesian Framework and the ISLM Model/6 Sept/Ch.23

Monetary and Fiscal Policy in the ISLM Model/11 Sept/Ch.24

Aggregate Demand and Supply Analysis/Transmisssion Mechanisms of Monetary Policy: The Evidence/13 Sept/Chs.25,26

Review for the Final Exam/18 Sept

Final Exam/Homework Sets #4,5/20 Sept

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 2005-2006 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 "WH".
  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: .


This material is protected by copyright and can not be reused without author permission.

Last Updated:7/13/2006 12:43:50 PM