MONEY,BANKING,AND FINANCIAL MARKETS
SUMMER 2003
SECTION 201
INSTRUCTOR: Pinar Ozbay
MichiganStateUniversity
108 KresgeArtCenter
M,W& F , 3:00 PM-4:50 PM
OFFICE:205 Old Botany
E-MAIL:
Required Texts
Mishkin, Frederic S.(2002), The Economics of Money, Banking and Financial Markets, Boston, Addison Wesley, Sixth Edition Update
McArthur, J. and F.S.Mishkin (2001) , Study Guide to Accompany the sixth edition of the The Economics of Money, Banking and Financial Markets by Mishkin, Addison Wesley Longman.
Office Hours
My Office is 205 Old Botany. My e-mail is . I will hold regular office hours on Monday 5:30-7:30 pm in the Main Library. If a significant number of students find these hours inconvenient, I will announce a change of the office hours in class and on the web site.
Feel free to stop by my office hours or e-mail me at any time with questions and concerns related to the course.
DESCRIPTION
This course in money,banking and financial markets is designed to provide the student with a working knowledge of the behavior of the real world financial system. The focus of the course will be on the banking financial intermediaries and their regulators. We will study the banking market on the microeconomic level and then discover how the behavior of the participants in this market affects the macroeconomy.
The course has four sections. In the introductory section we will make a brief summary of the function and structure of the financial system and will review the role of money and its effects on the economy.
Before we turn to a deeper discussion of the banking system, we will try to understand how interest rates are measured and determined. We examine how interest rates change through the use of supply and demand analysis for markets for bonds and money.
Next, we will study the operation of the most important of all financial intermediaries-the banks. We will discuss how they acquire funds, extend loans, and manage their assets and liabilities in order to earn the highest profit.
Finally, we will review the role of the Federal Reserve System and its monetary policy. We will study the determinants of money supply and what tools are used to affect those determinants . We will also examine the channels through which the Federal Reserve affects output and employment.
COURSE POLICIES
1)We will be covering the chapters in the book mentioned in order below the course outline. However, given tight schedule we have for this course, you are mainly responsible from the material discussed in class.In this respect, attendance and participation in discussions are crucial. There is of course no doubt that you will benefit immensely from reading the material before coming to class.
2)It will be appreciated if you wear a nametag or put a nameplate in front of you. This will help me learn your names sooner.
3)Please be punctual. If you need to leave early, please let me know before class starts.
EXAMS AND EVALUATION PROCEDURE
1)There will be two midterms and a final exam.The exams will be multiple choice questions.
2)There will be no make-up exams.
3)You will be allowed to keep your exam papers. For any reason, if you do not take the exam, the rest of your exams will be given more weight.
4)Each week, on the web page ~ec/faculty/TA/Pinar, you will the see practice exams for the chapters we covered each week. They will be very helpful in getting prepared for the exams. There will be 6 practice exams.Check the website frequently for updates.
MIDTERM 1 30 POINTS
MIDTERM 2 30 POINTS
FINAL 30 POINTS
ATTENDANCE 10 POINTS
Total 100 points
Grading Scale
4.0 90 and above
3.5 85-89
3.0 80-84
2.5 75-79
2.0 70-74
1.5 65-69
1.060-64
TENTATIVE COURSE OUTLINE
June 30 Ch.2
2 July Ch.3
4 July Holiday
7 July Chp 4
9 July Chp 4&Chp5
10 July Chp 5
14 July First Midterm
16 July Chp 9
18 July Chp 10
21 July Chp 11
23 July Chp 11&Chp14
25 July Chp14
28 July Chp 15
30 July Second-midterm
1 August Chp 16
4 August Chp 17
6 August Chp 17&Chp 18
8August Chp 18
11 August Chp 25
13 August Final Exam