EC303 Money, Credit and Banking

for FA 2009

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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


FA 2009 HO


Vinlove, F. Kathleen


Associate Professor, Economics



Office Location

Mackay 30.5

Office Hours

Monday and Wednesday, 10:00 - 11:30 and 2:45 - 4:15; Friday 10:00 - 12:00

Daytime Phone



Semester Dates

August to December, 2009

Class Days


Class Time

9:00 - 9:50 AM


EC 141 and EC 142 or instructor's permission

Credit Hours



Mishkin, Frederic S.  The Economics of Money, Banking, and Financial Markets, Eighth Edition.  New York:  Addison Wesley, 2007.  (ISBN 9780321415059)

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:

Because the learning process is active rather than passive, I will combine lectures with the Socratic method, and student questions are always encouraged.  The use of analytical tools and application to specific, real-world examples are emphasized.

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 30 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:

Exams:                          There will be three exams: two class-period exams and a comprehensive final exam. The average of these three exams will constitute 70 percent of your final grade.

Each exam will be composed of multiple-choice, short essay, and diagram questions based on my lectures, in-class exercises, and presentations. All exams are worth 100 points. I will curve each exam to give you an idea of your performance in terms of letter grades. However, final letter grades will be determined by a curve of final total averages for the class.

Late Arrivals to Exams: Students arriving late to an exam may take the exam only if no other student has turned in the exam. If another student has completed the exam, the late student cannot take the exam.

Students may not leave the classroom during an exam. Cell phones must be turned off and put away during exams; students who answer cell phones during an exam will be asked to turn in the exam. Seating for exams is assigned.

Make-up Exams:          No make-up exams will be administered for class-period exams. If a student misses either Exam 1 or 2, then the comprehensive final exam will count double. In other words, the student’s exam average will be based on three exams, but the final exam grade will be counted twice. Students who miss the final exam must take a comprehensive essay make-up exam.

 In-class Exercises:       During the semester, SIX in-class exercises will be administered. However, final grades are based on FIVE in-class exercises. Thus a student may miss one exercise without penalty. There are no make-ups for in-class exercises. To receive full credit for an in-class exercise, a student must be present on time (not more than 10 minutes late) for the exercise and complete all questions related to the exercise. They are worth 10 percent of the final grade and will be scored as follows:

Full credit                         20 points
Partial credit                    10 points

No credit                            0 points

Topic Paper:                 A topic paper graded on a 100-point scale will be worth 20 percent of the final grade. A student who fails to turn in a research paper will receive a grade no higher than a “D.” The paper must be handed in at the beginning of the class period on the deadline date for full credit. 




Grading Plan:                        Final grades will be based on the following percentages:

Exams                                                                         70%

Topic paper                                                                 20%

In-class exercises                                                       10%

Note: If a student’s grade is borderline, I will consider attendance, homework preparation, and number of in-class exercises completed.

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 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.

Late Submission of Course Materials:


The following dates for the topic paper should be noted:

                                                Hard Copy:

                                                Monday, November 30, 9:00 a.m.                                         deadline

                                                During class time (15 minutes after class begins), Nov. 30   minus 5 points

                                                Between deadline and Friday, Dec. 4, 9:00 a.m.                   minus 15 points

                                                Between Dec. 4, 9:00 a.m. and Mon., Dec. 7, 3 p.m.          minus 30 points

                                                After Monday, Dec. 7, 3 p.m.                                               zero points

                                                Soft Copy:

                                                Monday, November 30, midnight                                           deadline

                                                Between deadline and Monday, Dec. 7, 3 p.m.                     minus 5 points

                                                No soft copy                                                                          minus 35 points

Classroom Rules of Conduct:
The professor assumes that students are adults and will conduct themselves accordingly.

Course Topic/Dates/Assignments:


EC 303: Course Topics/Dates/Assignments, Spring 2009

Week      Topic                                                                                                     Chapters

     1         Introduction                                                                                           1, appendix, 3

               The Federal Reserve System                                                                    15

     2         The Federal Reserve System, continued

               Money Creation                                                                                          16

     3         Money Creation, continued

               The Money Supply                                                                                     17

4         The Money Supply, continued

               Demand for Money                                                                                    21

     5         Demand for Money, continued                                                                 

     6         Continued; Review

First Exam: Wednesday, September 23

     7         Aggregate Demand and Supply Analysis                                                  24


     8         Aggregate Demand and Supply Analysis, continued


     9         Aggregate Demand and Supply Analysis, continued

     10       Monetary Policy: Tools                                                                              18


11       Continued; Review

Second Exam: Friday, November 6

     12       Monetary Policy: Goals and Targets                                                         19

     13       International Financial System                                                                   20

     14       Economic Analysis of Banking Regulation                                                12

15         Continued; Review

Research Paper Due: Monday, November 30, 9:00 a.m.


Final Exam: Wednesday, December 9, 8:00 to 10:00 a.m.

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 2008-2009 Undergraduate Catalog Page 87

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 2009-2010 Undergraduate Catalog Page 92

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 "F".
  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 2009-2010 Undergraduate Catalog Page 95

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:8/20/2009 12:19:45 PM