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MICHAEL A. S. GUTH, Ph.D., J.D. |
Troy State University Montgomery
Division of Business
Economics 3353
Instructor: Dr. Michael A. S. Guth, Ph.D., J.D.
Office Hours: 9 AM – 12:00 noon Monday - Friday
Telephone: 865-483-8309
E-mail mike @@michaelguth.com
Prerequisites: Eco 2251 and Eco 2252
Text: (Required) Miller and VanHoose, Money, Banking, & Financial Markets (Southwestern/Thomson, 2001), ISBN 0324025623
Course Credits: 3 semester hours
Course Description : A study of the role of Money and Banking in the U.S. economic system, including measures and types of money, the role played by commercial and central banking systems in the expansion of the money supply, and the tools used to control the money supply. The course also includes a study of different money and income theories. Refer also to the “course objectives.”
Course Requirements : During the course, students will be required to post to the discussion board a report consisting of a short summary and commentary of an article in the money or banking area from the Wall Street Journal. Each week, students will be expected to post an average of three substantive comments to the discussion board. Students are encouraged to comment on other students’ postings, and not limit themselves to replying only to the topics posted by the instructor. There will be an Exam every week covering the material assigned for that week. The weights for the final course grade are as follows:
Discussion Board Participation 30% Weekly + special WSJ reports
Exams 70% Weekly
Evaluation Standards:
A- 90% and above
B- 80% to 89%
C- 70% to 79%
D- 60% to 69%
F- Below 60%
Wall Street
Journal Reports
A summary of an article in the WSJ will be required of each student once or twice during the course. These reports must be posted to the discussion board no later than Thursday of that week. The summary should be one-half to one page, double-spaced.
Course Objectives
After completing
this course, students should have a thorough knowledge of:
·
the forms,
functions, and evolution of money and the emergence of digital cash;
·
how the amount of money in circulation is defined and
measured;
·
ascertaining different interest rates - the
Federal Funds rate, the discount rate, the prime rate, LIBOR;
· domestic and international financial markets and the role of electronic trading;
·
spot exchange rates, spatial arbitrage, triangular
arbitrage, effective exchange rates, purchasing power parity -
absolute, relative;
·
interest rate
risk, foreign exchange risk, financial instruments, and derivative securities;
·
portfolio
choice, international interest rate parities, and market efficiency;
·
financial
institutions, the economics of banking, and issues in bank management;
·
the money
supply process and the implications of electronic money; and
·
the Federal
Reserve and its role in U.S. and global payment systems.
Course Schedule
Week 1
Chapter 1: Money - An Introduction
Chapter 2: Banking in the New Cyberworld
Post three substantive comments to the discussion board. Complete the exam for Week 1 by Sunday.
Additional links:
www.federalreserve.gov/releases/.
www.cardshow.com/guide/index.html.
www.electronicbanker.com/fso/rankings.htm
Week 2
Chapter 3: Financial Markets, Instruments, and Institutions
Chapter 4: Interest rates
Post three substantive comments to the discussion board. Complete the exam for Week 2 by Sunday.
Additional links:
www.hoovers.com/ipo/o,1334,23,00.htm
www.ny.frb.org/pihome/statistics
Week 3
Chapter 5: A World Market? - International Financial Integration
Chapter 6: Foreign Exchange Markets
Post three substantive comments to the discussion board. Complete the exam for Week 3 by Sunday.
Additional links:
www.londonstockex.co.uk/about/about.asp
http://pacific.commerce.ubc.ca/xr/PPP.html.
Week 4
Chapter 7: Finding the Best Mix of Financial Instruments - the Theory of Portfolio Choice
Post three substantive comments to the discussion board. Complete the exam for Week 4 by Sunday.
Additional link: www.hedge-hog.com
Week 5
Chapter 8: Managing Risks in the Global Economy - Duration and Derivatives
Chapter 9: Efficient Markets and International Interest Parity
Post three substantive comments to the discussion board. Complete the exam for Week 5 by Sunday.
Additional links:
www.cme.com/cgi-bin/prices.cgi?prices/r_nb.html
Week 6
Chapter 10: Financial Institutions
Chapter 12: Understanding How Banking Markets Work - The Economics of Depository Institutions
Post three substantive comments to the discussion board. Complete the exam for Week 6 by Sunday.
Additional links:
www.app.ny.frb.org/dmm/domestic.html.
Week 7
Chapter 13: The Business of Banking - Depository Institution Management and Performance
Chapter 16: Why Money and Banking Go Together - Depository Institutions and Money
Post three substantive comments to the discussion board. Complete the exam for Week 7 by Sunday.
Additional links:
www.app.ny.frb.org/dmm/domestic.html.
Week 8
Chapter 25: What Should the Fed Do? - Objectives and Targets of Monetary Policy
Chapter 27: What the Fed Does - Interest Rate Targeting and Economic Activity
Post three substantive comments to the discussion board. Complete the exam for Week 8 by Saturday (last week of class).
Additional link: www.federalreserve.gov/
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MICHAEL A. S. GUTH, Ph.D., J.D. |
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