Frederick Community College

EC 210 – Money and Banking

Fall 2009

 

Instructor Information:

 

Name:   Paula Lindsay DBA and Seth A. Roberts M.S.

 Seth Phone Number:  (W) 301- 644-5103

                                    (C) 240-285-8525

Paula Lindsay Phone: (O) 301-846-2604

E-mail: sroberts@frederick.edu and plindsay@frederick.edu

Campus Mail Box Number:  431 and 136

Office Hours:  Immediately before or after class

 

 

Course Information:

 

Credits:  3

Last Day to Withdraw:  11/2/09

Prerequisites:  EC 202

Co-requisites:

Meeting Day(s): Wednesday

Meeting Time(s):  7:45 – 10:20 PM

 

Course Description:

           

This is a hybrid class with online lesson delivery and face to face meetings to work on the group project aspect and go over the current economic data and to review the concepts covered on-line.  Emphasis is placed on monetary policy, money creation, and the operation of banks and credit in the macro environment. 

 

Core Learning Outcomes:

 

Students completing this course will be able to:

1.           (Goal I)  Demonstrate college-level communication skills by

·         writing and speaking effective, organized, clear, and grammatically correct English appropriate for a specific subject, purpose, and audience (1)

·         interpreting financial and economic written texts (2)

·         Creating and participating in the presentations for a Fed Challenge Team at FCC

 

2.         (Goal II)  Demonstrate critical thinking skills by

·         recognizing and interpreting the major concepts and problems related to the market system (4)

·         evaluating and analyzing significant economic facts and interpretations (4)

·         drawing well-reasoned conclusions based upon the evidence and logical inferences (6)

·         Creating and participating in the presentations for a Fed Challenge Team at FCC

 

3.         (Goal III)  Display general knowledge and historical awareness by

·         understanding of the behavior of the Fed and banking institutions (10)

·         identifying and distinguishing among the factors influencing monetary poicy(10)

·         demonstrating an understanding of capital and interest by utilizing the concepts of net present value (10)

 

4.                  (Goal IV)  Demonstrate quantitative problem solving by

·         working problems requiring a college-level understanding of math principles (11)

·         interpreting economic data (12)

·         constructing and interpret cost curves for each market model (12)

·         demonstrating an understanding of the profit-maximization rule (12)

·         constructing and interpreting graphs (13)

·         Creating and participating in the presentations for a Fed Challenge Team at FCC

 

5.         (Goal VII) Understand and be able to interpret social and educational values by

·         demonstrating an understanding of the importance of ethical standards in the financial  markets (23)

 

6.         (Goal X)  Value the emergence of a multicultural society by

·         demonstrating a knowledge of the operations of  the World Bank and IMF (31)

·         identifying the problems relevant to multinational corporations (31)

·         demonstrating an understanding of the theory of international exchange (31)

 

 

Instructional Methods:

 

Lecture

On-line instruction

Multimedia presentations

Group Problem-Solving Tasks

Individual problem solving tasks

Creating a group presentation

Class Discussions

Reading (Text and Handouts)

 

Text(s) for Course:

 

Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets,

        ninth edition, Pearson Addison Wesley, ISBN

Board of Governors of the Federal Reserve System, The Federal Reserve System:

Purposes & Functions, eighth edition

Federal Reserve Bank of Philadelphia, A Day in the Life of the FOMC

A Term at the Fed, Lawrence Meyer (OPTIONAL)

 The Wall Street Journal (OPTIONAL)

Dismal.com (OPTIONAL)

The New York Times, Sunday Business Section (OPTIONAL)

 

Questions to be addressed in this Course:

What are the causes and consequences of the current financial crisis? How did we get into such a mess? How can we get out?

What is money?

What is the role of money? How does it affect the macroeconomy?

What is the history of money and banking?

How does the financial system operate?

What is capital and why is it important?

What is the function and structure of the current U.S. banking system?

Who gains and who loses from the current U.S. banking system?

Why is the Federal Reserve Board (and Ben Bernanke) so important?

What is monetary policy and how does it work?

What economic models can be used to explain monetary policy?

What should be done with monetary policy?

What is the future of money and banking?

Will mergers lead to an increase in the concentration and centralization of capital? Can community development through local financial institutions succeed?

What are the causes and consequences of the current credit crisis?

How can I get rich from all of this?

How does this apply to the community and the university?

How can we make the world a better place?

 

 

 

 

 

 

 

Evaluation Methods: 

 

Tests/Papers/Projects

Point Value

Final Grade Scale in Percentages

Two Exams

40% of Final Grade

(200 points each)

A = 90.0-100

B = 80.0-89.9

C = 70.0-79.9

D = 60.0-69.9

F = 00.0-59.9

3 Quizzes

Students may substitute a paper on economic indicators for two quiz grades. 

Missed quizzes may NOT be made up.

15 % of Final Grade

(50 points each for a total of 150)

 

Group Project Fed Challenge 2009

30% of final grade

(300 points)

 

Problem Sets / Research

10% of final grade

(100 points total)

 

Class Participation

5 % of Final Grade

(50 points total)

 

 

Exams/ Papers / Projects

Point Value

Final Grade Scale

Exam 1

200

A = 900-1000

Exam 2

200

B = 800-899

Quizzes 3

150

C = 700-799

Group Project

300

D = 600-699

Problem Sets

100

F =     0-599

Attendance & Participation

50

 

 

Progress Report:

 

A progress report will be available by the sixth week of class. 

 

Attendance Policy:  

Attendance is required in the face to face meetings unless excused by the instructor prior to the missed class.

 

Students with Disabilities


FCC provides reasonable accommodations to otherwise qualified students with disabilities in accordance with the Americans with Disabilities Act of 1990 (ADA) and Section 504 of the Rehabilitation Act of 1973 (Section 504) and amendments.  Students with disabilities who are in need of accommodations must contact the Services for Students with Disabilities (SSD) office at 301-846-2408 (A Building, Room 106A) in order to request and apply for services.  The SSD office will require appropriate documentation of a disability.  Questions related to accommodations or services can be directed to the SSD office.  Additional information related to services can be viewed at the following FCC web page:  http://www.frederick.edu/student_services/disability.aspx. 

If you currently receive services from the SSD office, please submit your Student Success Plan to me and make an appointment with me to discuss your accommodations and needs in class.  I will hold any information you share with me in strict confidence unless you give me permission to do otherwise.

 

 

 

TOPICAL OUTLINE

 

Class

Date

Subject

Content

1

 

On

Campus

8/26

Chapters 1 and 2

1.      Review of basic concepts and definitions.

2.      Introduction to Monetary Analysis, Institutions and Policy

3.      Introduction to Fed Challenge

4.      Examine expectations for hybrid course

2

 

On

Line

9/2

Chapter 22, Chapter 3, and Chapter 13

1.      Aggregate Demand and Aggregate Supply analysis

2.      The Functions and Form of Money.

3.      M1, M2, M3, and Innovations in Money

4.      How is money created?

5.      The monetary base

6.      Budget deficits and the monetary base

3

 

 

On

Line

9/9

Chapter 12 and Chapter 14

Quiz

1.      How Does the Fed Operate? 

2.      The organization and independence of the Fed

3.      What Determines the Supply of Money? 

4.      Open market operations, money multiplier, currency ratio, reserve ratio

5.      The Complete Money Supply Model

6.      Determinants of the money supply and bank panics.

7.      Quiz

4

 

On

Campus

9/16

First Fed Challenge Practice

1.      How to make a Fed Team

2.      Types of research

3.      Online and  real world resources

4.      Economic statistics

5.      Current articles

6.      Read and discuss speeches

7.      Begin thinking about roles/presentation

5

 

On

Line

9/23

Chapter 15 and Chapter  16

1.      What are the Tools of the Fed?

2.      Open market operations, discount policy, reserve requirements

3.      Conduct of Monetary Policy

4.      What are the appropriate goals and targets?

6

 

On

Campus

9/30

EXAM and Second Fed Challenge Practice

1.      Stats

2.      Reports from students

3.      Discuss roles

4.      Begin power point

5.      Read and discuss speeches

6.      Current articles

7.      Exam

7

 

On Line

10/7

Chapter 23 and Chapter 24

(Progress Report Available)

1.      Transmission Mechanism of Monetary Policy

2.      Money and inflation

3.      How does monetary policy cause inflation?

4.      Monetizing the debt

 

8

 

On

Campus

 10/14

Third Fed Challenge Practice

1.      Stats

2.      Reports from students

3.      Discuss roles

4.      Begin power point

5.      Read and discuss speeches

6.      Current articles

9

 

On

Line

10/21

Chapter 2 and Chapter 20

1.      Overview of the Financial System

2.      Why do we need financial markets?

3.      Financial markets vs. financial intermediaries

4.      International Financial System and Monetary Policy

5.      Foreign exchange and the money supply

10

 

On

Campus

10/28

Quiz and Fourth Fed Challenge Practice

1.      Stats

2.      Reports from students

3.      Assign final roles

4.      Begin power point

5.      Read and discuss speeches

6.      Current articles

7.      Quiz

11

 

 

On

Line

11/4

Chapter 4 and Chapter 5

1.                  Understanding Interest Rates

2.                  Present value, price vs. interest rate

3.                   Discount and coupon bonds

4.                  How Do Interest Rates Fluctuate?

5.                  What determines demand for an asset?

6.                  Bond demand and supply

7.                  Federal Reserve Bank, Bond, and Money Markets

8.                  Money demand and supply,

9.                  Relationship of bond and money markets

 

12

 

On

Campus

11/11

Quiz and Fed Challenge Practice

1.      Stats

2.      Reports from students

3.      Assign final roles

4.      Begin power point

5.      Read and discuss speeches

6.      Current articles

7.      Quiz

13

On Line

11/18

Chapter 6 and the Gold Standard
  1. The Yield Curve
  2. The Gold Standard

 

 

11/25

Happy Thanksgiving

 

14

 

On

Campus

12/2

Fed Challenge Practice/Recap and Quiz

Review for Exam
  1. Stats

2.      Reports from students

3.      Assign final roles

4.      Begin power point

5.      Read and discuss speeches

6.      Current articles

7.      Quiz

15

On

Line

 

 

12/9

FINAL EXAM

This is a cumulative assessment.