FI363 Financial Institutions & Markets

for S2T 2008

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FI 363 Financial Institutions & Markets


S2T 2008 DL


Sumrall, William H. III Ed.D.


Senior Professor


Ed.D. Arkansas State University
M.B.A. Delta State University
M.S. University of Southern Mississippi

Office Location

Memphis, TN

Office Hours

Afternoons or Evenings  


Semester Dates

Monday, March 17, 2008 to Sunday, May 11, 2008

Class Days


Class Time




Credit Hours



Financial Markets and Institutions, 7th ed., and accompanying Study Guide by Madura. ISBN: 0-324-28845-X for text, 0-324-28845-8 for study guide.

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

Not required to buy:  The Wall Street Journal (WSJ).  We will use the WSJ as a reference in this course regularly. It is available at most libraries, in many offices, and other places.

Hard copy subscriptions that include the online subscription are available to you as a student at special discounted rates if you would like to have your own copy. It's available for subscription on-line.

Click here to subscribe online!  Following this link will let the WSJ folks know you are enrolled as a student in this online course.

Delivery will start in a few days and they will bill you directly, usually within 3 or 4 weeks.

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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FAQ's for Online Students - You might find the answer to your questions here.

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: EC301 3:0:3

Educational Philosophy:

This course is part of Park's degree completion program, which is designed for adult's who have previous college/university credits and/or work experience.  Students are expected to read and follow all instructions as to how to format work, where to send it, and when it is to be completed. If any of the materials in the course or instructions about what to do are unclear, it is the student's responsibility to ask questions.

I do not believe in assigning extra credit work. The ONLY exception is that on the final exam there are some questions from chapters not assigned that any student may answer or not, which if answered correctly will add points to your final exam score.

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.

  Instructor Learning Outcomes
  1. 1. Understand the basics of the financial markets.
  2. 2. The student will be able to compare and contrast various domestic financial institutions.
  3. 3.The student will be able to compare and contrast various financial markets.
  4. 4.Given different circumstances relating to financial transactions, the student will be able to explain why interest rates vary among those transactions
  5. 5.The student will be able to explain the functioning of the Federal Reserve System and predict the effects various FED actions may have on the economy.
  6. 6.The student will be able to explain how the United States Treasury Department relates to other financial institutions
  7. 7.The student will be able to explain how the Federal Reserve relates to banks and other institutions
  8. 8.The student will be able to explain how the Stock Market works and how to value stocks and options.
  9. 9.The student will be able to calculate the value of an option for stocks, bonds, etc.
  10. 10.The student will be able to contrast and compare the impact various organizations have on financial markets around the globe, with the end in mind of being able to choose an appropriate course of action.
Core Assessment:

Class Assessment:

The final course grade will be determined using the following measurements:

    * Homework Assignments/Group projects

    * Mid Term Examination (Individual)

    * The Options game. Your ability to determine how much your investment in an option earned or lost. You'll win this game by getting the right answer, not by how much you made or lost. (Individual or team).

    * Comprehensive Eighth Week Exam (Individual Proctored)

    * Instructor evaluation/class participation which is made up of the following factors:

         1. Posting your introduction to the conference during the first week of the course.

         2. Posting comments about the videos or other related topics in the weekly discussion         threads.

         3. Team work - which includes joining/forming a team during week 1 and submitting the week two assignment with your team.

         4. Attending class each week - meaning being active with your team. I ask each team leader to report if someone did not participate during a week because Park makes me report to it.

         5. Responding to my request for teammate evaluations during week 8.

         6. Other course related activities.


The following percentages will be used to assign course grades:

    * 90% - 100% = A (900-1000 points=A)     * 80% - 89% = B (800-899 points=B)

    * 70% - 79% = C (700-799 points=C)     * 60% - 69% = D (600-699 points=D)

    * Below 60% = F (below 600 points=F)

Assignment             % of Grade             Points             Due Date

Homework and

Group Projects--------40%------------------400---------------Assignments are due on Sunday

Options Game----------5%-------------------50----------------Fifth class week

Class Participation----15%----------------150----------------Continually

Mid-Term Exam--------10%----------------100----------------Fourth class week

Eighth Week Exam----30%----------------300----------------Eighth class week

Total    100%             1,000

The course grade for students will be based on the overall average of homework and tests taken during the course in accordance with the weighting of the various requirements as stated in the syllabus.

All final exams in all School of Business and Management courses will be comprehensive and will be closed book and closed notes. They will constitute 30% of the total course grade and will not be a take-home exam. They will be completed during the test week in the period designated by the registrar or by the Proctor in the case online courses. 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 Dean of the School of Business and Management.

Late Submission of Course Materials:

Each week's work must be completed by Midnight EST on Sunday. Homework not turned in 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.

Classroom Rules of Conduct:

·          Students should use Park Pirate email for private messages to the instructor and other students.

·          The Conference Area is for public messages and all writings in this area (except in the Team threads) will be viewable by the entire class.

·           All students will participate in weekly Online discussions. Conventions of "on-line etiquette," which include courtesy to all users, will be observed.

Course Topic/Dates/Assignments:

WEEK 1- Our goal is to understand the many different types of financial markets and institutions and the roles they play through theory, activities, and current examples. We begin to focus on interest rates, how they are determined, and the relationship between rates, time, and securities prices.

 Week 2- Our goal includes a review of: (1) the Federal Reserve System, monetary theory, and monetary policy and (2) debt security markets with emphasis on money markets and an initial review of the options market.

Week 3- Our goal includes a review of: (1) other debt security markets and instruments, including bond and mortgage markets and (2) a review of the basic characteristics of these institutions and their financial instruments relative to the asset-liability characteristics of these institutions, how these institutions and instruments function, what purpose they serve, and some of the challenges faced in each of these markets. Perhaps most interesting this week will be the chapter on bond valuation!

Week 4- Our goal includes completion of: (1) the Mid Term Exam and (2) a review of the market for stock, including stock valuation.

Week 5- Our goal includes a review of: (1) the markets in which financial futures, options, interest rate swaps, and foreign exchange derivatives are traded and (2) the basic characteristics of these instruments.

Week 6- Ourgoal includes a review of: (1) basic characteristics of banks as depository institutions, (2) sources and uses of bank funds, (3) bank regulation, and (4) bank management, including performance measurement.

Week 7- Our goal includes a review of the financial characteristics relative to non-banking financial institutions including savings (thrift) institutions, credit unions, finance companies, mutual funds, securities firms, pension funds, and insurance companies.

During the final week, we will assess the course itself, the contribution of each team member to the team's efforts, and have an assignment to review what has happened during the 8 weeks we were in this class. We will also have a significant exam. The policy at Park University is for each of you to take a significant, proctored exam during the Eighth week of the class. Unless you are more then two hours from the nearest Park site, you are expected to take the exam at one of the Park sites. (People overseas or other wise out of the area of a Park site will be handled on an individual basis. If you think this applies to you, contact me before you submit your proctor form with details of your situation.) I will send the exam to your proctor; you will have to arrange a time to meet with the proctor and to take the exam, and then have the proctor send it to me. There is additional information below.

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 2007-2008 Undergraduate Catalog Page 85-86

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 2007-2008 Undergraduate Catalog Page 85

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.
  3. Work missed through unexcused absences must also be made up within the semester/term of enrollment, but unexcused absences may carry further penalties.
  4. 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 "F".
  5. A "Contract for Incomplete" will not be issued to a student who has unexcused or excessive absences recorded for a course.
  6. 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.
  7. 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 2007-2008 Undergraduate Catalog Page 87-88

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:2/19/2008 3:35:11 AM