MONEY AND BANKING

MONEY AND BANKING
Class webpage: http://www.myeconlab.com/
[email protected]
Tel: (802)-656-0946
Office: 335, Old Mill
Office Hours: Tuesdays and Thursdays 11:45-12:45
or by appointment.
COURSE OBJECTIVE AND DESCRIPTION
The objective of this course is to help students understand the economic rationale behind the
organization of the financial system and its connection to the broader economy. We first learn the
concepts, facts and tools of economic analysis. Second, we apply those tools to evaluate current events
as well as to predict changes in the economy and the financial system.
The course presents the best recent research on monetary policy and the financial system and is
structured in four parts. First, we review the role of money in the economy, and its connection to prices.
Second, we study financial markets. We focus on bond markets and interest rates. We also cover the
stock market, derivative markets and the foreign exchange market. Third, we study financial institutions,
covering commercial banks, investment banks, mutual funds, hedge funds, the shadow banking system,
and the Federal Reserve. Fourth, we study monetary policy and monetary theory.
COURSE REQUIREMENTS
In order to free the maximum amount of time for class lectures and activities, performance evaluation is
for a large part done online.


On line homework assignments and class exercises (25% of the semester
performance). There is about one homework assignment per chapter to be completed
online. Online homework weighs 20% and class work weighs 5%.
On line quizzes (50% of the semester performance). There is one quiz per chapter to be
completed online.

Comprehensive final test in class (25% of the semester performance)

Extra credit opportunities: They are announced in class only and need to be turned in
class.
The homework assignments and online quizzes are posted early and the solutions are
available shortly after the due date. Online homework completed one day late receives
half credit. There are no deadline extensions for quizzes. Class exercises and extra-credit
opportunities are ways to assess class participation. There is therefore no make up for
absentees.
To account for any type of absence, the two lowest quiz grades, the two lowest
homework grades and the two lowest class exercise grades are dropped. Repeated
absences or long term illnesses resulting in missing more than two online assignments,
two class assignments and two quizzes need to be documented by the students’ deans’
office to be excused.
COURSE MATERIAL
We use a website and a textbook:
Hubbard & O'Brien: Money, Banking, and the Financial System plus New MyEconLab with
Pearson eText -- Second Edition
Two options are available at the bookstore. Option 1 is the ebook + website, and option 2 is the
ebook + print text +website:
with
0133020002
MyLab
etext
9780133020007
MyLab + Print with
0133148688
Text
etext
9780133148688
The third option is to directly purchase the package from the Pearson website at
http://www.myeconlab.com/
SEE REGISTRATION DETAILS ON THE BACK OF THE SYLLABUS
~ PROVISIONAL COURSE SCHEDULE ~
Week
Date
Chapter in Textbook
1
01/13-01/17
Chapter 1: Introducing money and
the financial system
Chapter 2: Money and the payments
systems
2
01/20-01/24
Chapter 3: Interest rates and rates of
return.
3
01/27-01/31
Chapter 4: Determining interest rates
01/27 Add/Drop deadline
4
02/03-02/07
Chapter 5: The risk structure and
term structure of interest rates
5
02/10-02/14
Chapter 6: The stock market,
information and financial market
efficiency
6
02/17-02/21
Chapter 7: Derivatives and
derivative markets
7
02/24-02/28
Chapter 8 The market for foreign
exchange.
8
03/03-03/07
Spring Break
9
03/10-03/14
Chapter 9: Transactions costs,
asymmetric information, and the
structure of the financial system.
Chapter 10: The economics of
banking.
10
03/17-03/21
Chapter 11: Investment banks,
mutual funds, hedge funds and the
shadow banking system.
11
03/24-03/28
Chapter 12: Financial crisis and
financial regulation
Chapter 13: The federal reserve and
central banking
12
03/31-04/04
Chapter 14: The Federal Reserve’s
balance sheet and the money supply
process
13
04/07-04/11
Chapter 15:Monetary policy
14
04/14-04/18
Chapter 16: The international
financial system and monetary
policy
15
04/21-04/25
Chapter 17: Monetary theory I: The
AD-AS model
16
04/28-04/30
Chapter 18: Monetary Theory II:
The IS-MP model
FINAL EXAM: 06-MAY-2014 8:00 AM,
JEFFRD 127
~ GRADES~
A’s: Score superior to 90%
B’s: Score between 80 and 90%
C’s: Score between 70 and 80%
D’s: Score between 60 and 70%
F’s: Score below 60
MyLab & Mastering
Student Registration Instructions
To register for EC 120 Money & Banking -- SP 14':
1. Go to pearsonmylabandmastering.com.
2. Under Register, click Student.
3. Enter your instructor’s course ID: mathieu-bolh16072, and click Continue.
4. Sign in with an existing Pearson account or create an account:
· If you have used a Pearson website (for example, MyITLab, Mastering,
MyMathLab, or MyPsychLab), enter your Pearson username and password.
Click Sign in.
· If you do not have a Pearson account, click Create. Write down your new
Pearson username and password to help you remember them.
5. Select an option to access your instructor’s online course:
· Use the access code that came with your textbook or that you purchased
separately from the bookstore.
· Buy access using a credit card or PayPal.
· If available, get 14 days of temporary access. (Look for a link near the bottom
of the page.)
6. Click Go To Your Course on the Confirmation page. Under MyLab & Mastering
New Design on the left, click EC 120 Money & Banking -- SP 14' to start your
work.
Retaking or continuing a course?
If you are retaking this course or enrolling in another course with the same book,
be sure to use your existing Pearson username and password. You will not need to
pay again.
To sign in later:
1. Go to pearsonmylabandmastering.com.
2. Click Sign in.
3. Enter your Pearson account username and password. Click Sign in.
4. Under MyLab & Mastering New Design on the left, click EC 120 Money &
Banking -- SP 14' to start your work.
Additional Information
See Students > Get Started on the website for detailed instructions on
registering with an access code, credit card, PayPal, or temporary access.