FI363 Financial Institutions & Markets

for U1H 2013

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Mission Statement: Park University provides access to a quality higher education experience that prepares a diverse community of learners to think critically, communicate effectively, demonstrate a global perspective and engage in lifelong learning and service to others.

Vision Statement: Park University, a pioneering institution of higher learning since 1875, will provide leadership in quality, innovative education for a diversity of learners who will excel in their professional and personal service to the global community.


FI 363 Financial Institutions and Markets


U1H 2013 BU


Kozak, Virginia L.


Senior Adjunct Instructor


BA cum laude

Other Phone



Semester Dates

03 Jun 12-28 Jul 13

Class Days


Class Time

7:35 - 10:05 PM


EC 301

Credit Hours



Madura, Financial Markets and Institutions, 10th Edition
ISBN-13:  9780538482134
ISBN-10:  0538482134

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

Wall Street Journal
Investors Business Daily
Business Week

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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:
The instructor's educational philosophy is to provide the students with both the motivation and the information to understand the world's financial markets and institutions from a pragmatic and practical perspective.  The approach taken is both "real-world" and "hands-on."   The current financial environment will add a special relevance to this approach.

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. Compare the movement of bond prices and yields
  2. Analyze the functioning of stock markets
  3. Understand the role and functioning of interest rates
  4. Explain the differences between commercial banks and other financial institutions
Core Assessment:

Class Assessment:
In keeping with the "Educational Philosophy" discussed above, the core of the course will be an ongoing investment project.  There will also be cases/questions to provide interim testing on concepts and a final review test to synthesize the main issues of the course.


Project (ongoing)            45%
Cases/Assignments (3)   30%
Test                               25%
90-100                              A
80-89                                B
70-79                                C
60-69                                D
Below 60 (or 3 or more
Unexcused absences)         F

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:
If an asignment or project is submitted late, unless there are extenuating circumstances such as illness or military deployment and prior arrangements have been made with the instructor, each day that the assignment or project is late will result in the lowering of the original grade.

Classroom Rules of Conduct:
Mature and responsible conduct is expected of all students.

Course Topic/Dates/Assignments:

1 Role of Fin. Mkts. and Institutions Read Chapter 1
2 Interest Rates Read Chapters 2-3 
3 The Fed and Monetary Policy Read Chapters 4-5 CASE
4 Money and Mortgage Markets Read Chapters 6 & 9
5 Bonds Read Chapter 7-8
6 Equity Markets; see Wall Street Read Chapters 10
7 Stocks Read Chapter 11 CASE
8 Market Strategies Read Chapter 12
9 Other Markets Read Chapters 13-16
10 Commercial Banks Read Chapter 17
11 Bank Regulations and Management Read Chapters 18-19
12 Bank Performance  Read Chapter 20 CASE
13 Thrifts, Consumer Finance, Credit Unions Read Chapters 21-22
14 Mutual Funds and Security Firms Read Chapters 23-24
15 Pension Funds and Insurance Companies Read Chapter 25
16 Chapters 1-25 TEST

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 students and faculty members are encouraged to take advantage of the University resources available for learning about academic honesty ( or Park University 2012-2013 Undergraduate Catalog Page 97

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. from Park University 2012-2013 Undergraduate Catalog Page 95
It is completely unacceptable.  Depending upon the degree and extent it may result in a failing grade for the course.

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 2012-2013 Undergraduate Catalog Page 98
Students have found that it is essential to attend all classes and to obtain detailed notes from other students if an absence is unavoidable.

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:5/3/2013 3:22:33 PM