University of Vermont EC 120: Money and Banking

University of Vermont
EC 120: Money and Banking
Term: Spring 2010
Instructor: Dr. Maharouf Oyolola
Time: MWF 10:40AM – 11:30AM ML SCI 105
Office: Old Mill Room 229
Phone: 802-656-0640
Office Hours: W 1:00PM -2:00PM or by appointment
Email: [email protected]
Etiquette:
 In email and in class, address me as “Professor Oyolola.”
 In writing email, please just start off with “Dear Professor Oyolola.”
Course Description
The objective of this course is to help students understand the organization of the financial
systems and its impacts on the overall economy. Moreover, we will examine how financial
markets and financial institutions work to facilitate the transfer of funds from lenders to
borrowers. This course is divided into 4 parts. The first part gives the students the tools necessary
to understand the subsequent chapters. The remaining parts deals with topics ranging from the
structure of the financial system, the organization of the Fed and the different tools used to
influence the economy, the business of the financial intermediaries.
Required Textbook
Frederic S. Mishkin, The Economics of Money, Banking and Financial Markets, 9th edition
Other interesting Textbooks
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R. Glenn Hubbard, Money, the Financial System, and the Economy, 5th edition
Dean Croushore, Money & Banking: A Policy-Oriented Approach, 1st edition
Recommended Reading
The Wall Street Journal
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Exam and grading policy
Your final grade will depend on your performance in the 2 exams- the midterm and final examthe group project, the presentation, the homework assignments and the class participation. The
weight of each component of the course grade will be as follows:
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Midterm exam 1: 25%
Final exam: 30%
Group project: 15%
Presentation: 15%
Homework: 10%
Class participation: 5%
Important Dates
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Add/Drop: February 1, 2010
Midterm exam 1: Friday, February 26, 2010
First draft project: March 31, 2010
Last day to withdraw: April 6
Final draft of the paper: April 23, 2010
Final Exam: Thursday, May 06, 2010 Time: 8:00AM- 11:00AM; ML SCI 105
Classroom Policies and Expectations
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Students are expected to remain polite during classroom discussions. You must treat
everyone with respect, even if you disagree with them.
Your cellular phones must always be off in class. If you forget to turn it off and it rings
once, I expect you to turn it off after the first ring. It is just a matter of courtesy.
Attendance Although not required, I expect you to attend the lectures. I strongly believe
there is a strong correlation between student attendance and grade. It can be a key factor
in helping me decide the type of student you are when you seek help and when you are at
borderline of a grade.
Exam: Do not wait until the last minute to start preparing for the exam. You will do
better by reading the chapter in the textbook, understanding your notes, doing your
homework and attending lectures. Therefore, I expect you to take good notes in class.
Homework: Students are expected to submit their assignments at the due date. Your
grade will depend on the quality and accuracy of your work.
Class Participation: I expect an active participation of the students during class discussions.
Also, read the articles beforehand.
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You are expected to read the chapter beforehand. Moreover, I expect you to spend time
going through and understanding your notes.
I do not allow open laptops in class
If you have a question, please raise your hand.
If you have a comment or suggestion, please raise your hand.
Absences: For unexpected absences, please be advised that only documentation from
the Dean’s Office will be accepted.
Miscellaneous: If you have any question or concern you are not comfortable discussing
in front of your peers, please feel free to see me at the end of the lecture or come during
my office hours and I will be more than happy to accommodate you to the best of my
ability.
Lateness during exams: On the day of an exam, if a student comes late and another
student has already completed his/her exam and left the classroom, the tardy student will
not be authorized to take the test and will get a grade zero for the test. Please be on time
to avoid that inconvenient situation.
Final Grading:
93 & +
90 – 92%
86 – 89%
83 – 85%
80- 82%
76-79%
73-75%
70- 72%
66- 69%
63-65%
60- 62%
X<60%
A
AB+
B
BC+
C
CD+
D
DF
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UVM Policies
You need to be aware of the UVM policies by reading the UVM Rights and Responsibilities of
Undergraduate Students, which is attached below:
Rights and Responsibilities of Undergraduate Students
Please find current policies at Web site1.
Classroom Code of Conduct
Faculty and students will at all times conduct themselves in a manner that serves to maintain,
promote, and enhance the high quality academic environment befitting the University of
Vermont. To this end, it is expected that all members of the learning community will adhere to
the following guidelines:
1. Faculty and students will attend all regularly scheduled classes, except for those
occasions warranting an excused absence under the University Attendance Policy (e.g.,
religious, athletic, and medical).
2. Students and faculty will arrive prepared for class and on time, and they will remain in
class until the class is dismissed.
3. Faculty and students will treat all members of the learning community with respect.
Toward this end, they will promote academic discourse and the free exchange of ideas by
listening with civil attention to comments made by all individuals.
4. Students and faculty will maintain an appropriate academic climate by refraining from all
actions that disrupt the learning environment (e.g., making noise, ostentatiously not
paying attention, and leaving and reentering the classroom inappropriately).
Attendance Policy
Students are expected to attend all regularly scheduled classes. The instructor has the final
authority to excuse absences. It is the responsibility of the instructor to inform students of his or
her policy for handling absences and tardiness, and the penalties that may be imposed.
Notification should be done both verbally and in writing at the beginning of each semester.
It is the responsibility of the student to inform the instructor regarding the reason for absence or
tardiness from class, and to discuss these with the instructor in advance whenever possible. The
instructor has the right to require documentation* in support of the student's request for an
excuse from class. If an out-of-class exam is scheduled which conflicts with a regularly
scheduled class, the regularly scheduled class has priority.
The instructor has the right to disenroll any student from a course if that student (1) does not
meet the prerequisites of the course, or (2) fails to attend a scheduled course by the third
instructional day of a semester or the second scheduled class session of a course, whichever
comes later, unless the student has notified the instructor and has been excused. To disenroll
students the instructor must notify the Registrar, who will remove the student's name from the
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class list and the course from the student's schedule. The student is responsible to determine
whether or not she or he is enrolled in a class.
* When a student is unable to attend class for a health reason, the student may give permission
for the instructor to discuss the situation with a representative from the Center for Health and
Wellbeing. As with all absences, the faculty member has final authority to excuse students from
classes.
Athletic-Academic Conflicts
Students participating in inter-collegiate athletics should plan their schedules with special care,
recognizing the primary importance of all of their University academic responsibilities. Each
semester, members of UVM varsity and junior varsity teams are responsible for documenting in
writing any conflicts between their planned athletic schedule and the class schedule to their
instructors by the end of the second full week of classes. Students and instructors should then
discuss potential conflicts between course requirements and intercollegiate competitions. When
an unavoidable conflict exists, the student and instructor should seek a resolution which permits
the student to address the course requirement and participate in the athletic competition. The
instructor has final authority on this matter.
Religious Holidays
Students have the right to practice the religion of their choice. Each semester students should
submit in writing to their instructors by the end of the second full week of classes their
documented religious holiday schedule for the semester. Faculty must permit students who miss
work for the purpose of religious observance to make up this work.
Each student is held responsible for knowledge and observance of these rules and regulations,
including those concerned with academic honesty. Please refer to the Code of Student Rights and
Responsibility, Alcohol and Drug-Student at: Web site1.
Academic Integrity
The principal objective of the Academic Integrity Code is to promote an intellectual climate and
support the academic integrity of the University of Vermont. Academic dishonesty or an offense
against academic honesty includes acts that may subvert or compromise the integrity of the
educational process. Such acts are serious offenses that insult the integrity of the entire academic
community.
Each student is responsible for knowing and observing this code. Please review the Academic
Integrity Code at Web site.2
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Tentative Course Schedule
Week
Day
1
2
Topic
First day of Class
Introduction and
Syllabus
01/22
Why Study Money,
Banking, and Financial
Markets?
Chapter 1
01/25
An Overview of the
Financial Markets
An Overview of the
Financial Markets
An Overview of the
Financial Markets
What is Money?
Understanding Interest
Rates
Understanding Interest
Rates
Understanding Interest
Rates
The Behavior of interest
rates
The Behavior of interest
rates
Chapter 2
01/27
01/29
3
02/01
02/03
02/05
4
02/08
02/10
02/12
5
02/15
President’s Day
Holiday
02/17
The Risk and term
Structure of interest
rates
The Risk and term
Structure of interest
rates
The Stock Market, the
theory of rational
Expectations, and the
Efficient Market
Hypothesis
The Stock Market, the
theory of rational
Expectations, and the
Efficient Market
Hypothesis
02/19
6
02/22
02/24
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Textbook
01/19
01/20
02/26
Midterm Exam 1
03/01
An Economic Analysis of
Financial Structure
An Economic Analysis of
Financial Structure
Financial crises and the
Subprime Meltdown
03/03
03/05
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Chapter 3
Chapter 4
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
8
9
10
03/08
03/10
03/12
03/15
Spring Break
Financial crises and the
Subprime Meltdown
03/17
Financial crises and the
Subprime Meltdown
03/19
Financial crises and the
Subprime Meltdown
03/22
Banking and the
Management of Financial
Institutions
Banking and the
Management of Financial
Institutions
Economic Analysis of
Financial Regulation
Economic Analysis of
Financial Regulation
Banking Industry:
Structure and
Competition
Banking Industry:
Structure and
Competition
Central Banks and The
Federal Reserve System
Money supply process
and the Tools of
Monetary Supply
Money supply process
and the Tools of
Monetary Supply
The conduct of Monetary
Policy
The conduct of Monetary
Policy
2 presentations
2 presentations
2 presentations
2 presentations
2 presentations
2 presentations
2 presentations
03/24
03/26
11
03/29
03/31
04/02
12
04/05
04/07
04/09
13
04/12
04/14
14
15
04/16
04/19
04/21
04/23
04/26
04/28
04/30
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Chapter 9
Chapter 10
Chapter 11
Chapter 12
Chapter 13
Chapters 14 & 15
Chapters 14 & 15
Chapter 16
Chapter 16
16
04/03
04/04
Last Day of Classes
Disclaimer
Changes may be made to any aspect of this syllabus. If such a situation occurs, I will make an
announcement in class.
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