FI363 Financial Institutions & Markets

for S2B 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 & Markets


S2B 2013 BL


Espinoza, Gerald A.


Adjunct Faculty


Masters of Business Administration in Finance
Bachelors of Business Administration

Office Hours

By Appointment

Daytime Phone



Semester Dates

03/18/2013 – 05/12/2013

Class Days


Class Time

7:40 - 10:10 PM

Credit Hours



Financial Markets & Institutions, Mishkin & Eakins, 7th edition, by Pearson Prentice Hall, 2011

ISBN 978-0-132-13683-9

Textbooks can be purchased through the MBS bookstore

Textbooks can be purchased through the Parkville Bookstore

Additional Resources:

A Business Calculator- I am most familiar and, will be using an HP BII calculator, but any Business Calculator can be used.

Wall Street Journal

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:
FI363 Financial Institutions and Markets: 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 facilitator's educational philosophy is one of interactive ness based on lectures, readings, dialogues, examinations, and web sites. The facilitator will engage each learner in what is referred to as disputatious learning to encourage the lively exploration of ideas, issues and contradictions.

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:

Core Assessment:

The final exam for FI 363 will be the assessment tool used for this course. The exam will be comprehensive and the grade used to determine competency levels achieved by the students. The exam will be closed book and closed notes. The exam consists of multiple choice questions covering the chapter readings in the course and problems that examine the critical thinking, effective communication skills and technical skills of the student. Partial credit will be given for the problems.


Class Assessment:
Grades will be based on 5 homework assignments and 4 test in which the first 3 tests will be taken online and the Final exam will be comprehensive and taken on the final day of class. The Final comprehensive exam will be close book and close notes.


Grades will be based on 4 exams (Test 1-3 = 75 Points each & Final = 150 Points) and 5 homework assignments (25 Points each)

Test  1               =   15% = 75 Points               

Test  2               =   15% = 75 Points 

Test  3               =   15% = 75 Points

Final Exam          =   30% = 150 Points

Homework           =   25% = 125 Points    

TOTAL                = 100%  = 500 Points  



At the end of the course, your accumulated points will be converted to grades based on the following scale:


450 - 500 Points       =  A
400 - 449 Points       =  B 
350 - 399 Points       =  C
300 - 349 Points       =  D
below 299                =  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:
Missed Examinations:  Make-up examinations will not be given unless prior arrangements have been made.

Missed Homework Assignments: Make-up assignments will not be given unless prior arrangements have been made. All homework assignments will be turned in via designated Dropbox in eCompanion on the date listed on the syllabus no later than by the end of class period.

Classroom Rules of Conduct:

As desrcibed, the classroom atmosphere should reflect the development of habits of behavior that will ultimately contribute to your success in the business world. Consequently, the policies established in this course are designed to promote a business-like atmosphere as well as an enviroment conducive to learning. As stated previously, the expectations include, but are not limited to, punctuality, good manners, and courteous behavior. Hats and caps are not allowed during exams, cell phone use is permitted in the event of family/work emergencies at which time students should step out of classroom to take call.

Course Topic/Dates/Assignments:


There will be a total of 5 homework assignments given throughout the course. Each has a maximum point value of 25 points. The homework assignments will consist of a write up on articles/case studies regarding current Financial Market issues. All homework assignments will be turned in via designated Dropbox in eCompanion on the date listed on the syllabus no later than by the end of class period.  The homework assignments will be on the following topics and be given out in class:

1.)         Chapter 1&2

2.)         Chapter 5

3.)         Chapter 11

4.)         Chapter 13

5.)         Chapter 14







Chapter 1 (Why Study Financial Markets & Institutions


Chapter 2 (Overview of the Financial System)

Homework # 1 Uploaded



Chapter 3 (What do Interest Rates Mean)


Test 1

Homework# 2 Uploaded- Homework #1 DUE



Chapter 5 (How Do Risk and Term Structure Affect Interest Rates?)


Chapter 9 (Central Banking and the Conduct or Monetary Policy)

Homework # 3 Uploaded - Homework # 2 DUE



Chapter 11 (The Money Markets)


Test 2- Homework #3 DUE



Chapter 12 (The Bond Market)


Chapter 13 (The Stock Market)

Homework #4 Uploaded



Chapter 14 (The Mortgage Markets)


Test 3 - Homework #5 Uploaded – Homework # 4 DUE



Chapter 17 (Banking and the Management of Financial Institutions)


Chapter 17 (Banking and the Management of Financial Institutions)

Homework # 5 DUE



Final Exam Review


Final Exam



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

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

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:2/11/2013 6:29:09 PM