UMUC-Europe Syllabus

Money and Banking (3). Prerequisite(s): ECON 201 and 203, or ECON 205. An examination of the structure of financial institutions and their role in providing money and near-money. Institutions, processes, and correlations analyzed include the Federal Reserve System, the techniques of central banks, the control of the supply of financial assets as a mechanism of stabilization policy, and the relationship of money and credit to economic activity and prices. Students may receive credit for only one of the following courses: ECON 430 or ECON 431.

Course Goals/Objectives:

After successfully completing this course, the student will be able to: provide an overview of financial markets and the importance of money demonstrate an understanding of the efficient market hypothesis and the behavior of interest rates perform an assessment of the structure of financial institutions understand the process of central banking and the conduct of monetary policies define international finance and its relationship to monetary policy use the Keynesian framework of monetary theory and apply it in a modern context

Course Introduction:

Never has the field of money, banking, and financial markets been more exciting. Financial innovation, deregulation, and geopolitical considerations have produced sweeping changes in the international financial landscape. By its very nature this is a big picture topic: an exploration of the institutions and markets that define the global financial system and how economic policy making influences these institutions and markets.

Grading Information and Criteria:

A = 90-100% B = 80-89% C = 70-79% D = 60-69% F below 60% Attendance/Participation: 10% Weekly Review Quizzes: 15% Midterm Examination: 25% Final Examination: 25% Term Paper: 25%

Other Information:

Any other information the instructor wishes to add. This might include: * General expectations of students, such as hours per week students should expect to devote to the class * Turnaround time for faculty to respond to email and return papers * Unique class procedures or activities (such as cooperative learning exercises, panel presentations, case study methods, class journals or learning logs) * Supplemental objectives (such as development of skills like teamwork, writing, oral presentation; integration of knowledge on focus topics) * Optional activities such as study groups

Project Descriptions:

Every student must complete a paper of their own choosing. Topics must be selected from the index in the text, be approved by the instructor and submitted in final form the last day of class. Each paper will answer a question that has been approved by the instructor and that can be answered concisely in five or six double spaced pages. References must include at least one from the Internet, in addition to hard sources, and must be photocopied and attached to the final paper.

Academic Policies:

Cases of plagiarism are handled consistent with current UMUC guidelines. See the UMUC policies at the following URL: http://www.umuc.edu/policy/

Course Schedule:

Session Assignment Session1 Chapter 1: Why Study Money, Banking, and Financial Markets? Chapter 2: An Overview of the Financial System Session2 Chapter 3: What Is Money? Session3 Chapter 4: Understanding Interest Rates. Session4 Chapter 5: The Behavior of Interest Rates Session5 Chapter 6: The Risk and Term Structure of Interest Rates Session6 Chapter 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Markets Hypothesis. Session7 Chapter 8: An Economic Analysis of Financial Structure Session8 Midterm Examination Session9 Chapter 9: Banking and the Management of Financial Institutions Session10 Chapter 10: Banking Industry: Structure and Competition Session11 Chapter 14: Structure of Central Banks and the Federal Reserve System. Session12 Chapter 15: Multiple Deposit Creation and the Money Supply Process Session13 Chapter 16: Determinants of the Money Supply Session14 Chapter 17: Tools of Monetary Policy. Session15 Chapter 18. Conduct of Monetary Policy: Goals and Targets Session 16 Final Examination Final Paper Due