UNIVERSITY OF MARYLAND DEPARTMENT OF ECONOMICS ECONOMICS 330 Fall Semester 2014 Dr John Neri Room SKN 0200 Office Morrill Hall 1102B Lecture M and W 3 30pm to 4 45pm E mail johna neri gmail com Office Hours M and W 10 30am 11 30am neri econ umd edu NOTE I will not respond to E mails sent via CANVAS REQUIRED Mishkin Frederic S Money Banking and Financial Markets Business School 2nd or 3rd Edition Pearson Addison Wesley 2010 COURSE DESCRIPTION Economics 330 is a course in money banking and financial markets The objective of this course is to develop a clear understanding of i the determination of interest rates ii interactions between different financial institutions iii the role money banks and the Federal Reserve in the American financial system At the end of this course you will be conversant in the language of financial markets and institutions and have an understanding of 1 what money is and why we use it 2 the fundamental concepts of a financial instrument including bonds stocks derivatives 3 the basic purpose of financial markets 4 the role of financial institutions in our economy with a special emphasis on banks and 5 the importance of central banks and the conduct of monetary policy COURSE WEB SITE http www terpconnect umd edu jneri Econ330 The E in Econ330 is capitalized EXAMINATIONS PROBLEM SETS AND GRADES Your grade will be determined as follows Two 2 midterm exams Comprehensive Final Exam Six 6 Problem Sets Total 100 points each 140 points 10 points each 400 points Examinations will be a combination of multiple choice short answer and problems The multiple choice section will be taken on a computer grading sheet scantron sheet with a number 2 pencil I will assign 6 graded problem sets We will attempt to return the graded short answer portion of the exams and the problem sets one week after the due date You will then have one week to raise questions regarding grades I will not entertain any grade questions after the one week question period Students with total points less than or equal to 200 50 percent will receive a grade of F for the course YOU MUST HAVE YOUR NAME IN INK on your problem set Unfortunately we have had names in pencil erased and a new name inserted Hard to believe but true LECTURE ATTENDANCE I expect you to come to class and remain in class for the duration of the class period The course web page is provided to update and disseminate course information IT IS NOT INTENDED TO BE A SUBSTITUTE FOR ATTENDING CLASS Any topic discussed in lecture is fair game for the exams I have been known to take attendance and give pop quizzes for extra credit Private conversations are disruptive and rude to fellow students and your instructor and will not be tolerated TEACHING ASSISTANTS There are two graduate Teaching Assistants TAs for this course that are available to help you You can go to any one for help I will divide the class alphabetically between the graduate TAs for grading I will update the TA grading responsibility office location office hours and e mail addresses on the course web site TUTORING IS AVAILABLE The Academic Achievement Programs AAP offers free tutoring for Econ 330 through the Academic Success and Tutorial Services ASTS Peer tutoring is offered on a consistent weekly basis for any student seeking support Each tutor is a current undergraduate who received a B or higher in the course and was recommended for hire by UM faculty MAKE UP EXAMINATION POLICY You are required to take all examinations A make up exam for each of the two in class exams can be given ONLY for those students with a valid University excuse Make up exams are provided only for students that comply exactly with the University policy posted at http www umd edu catalog index cfm show content section c 27 ss 1584 s 1540 The make up exam for each midterm will be given the week following the originally scheduled exam during regular class time You must complete the Request for excuse form and present a valid University excuse to me within 24 hours of the scheduled exam in order to take the make up More than one exam on the same day is not a valid excuse for a make up exam DO NOT ASK CALCULATORS You will need a calculator for exams I only allow four function and scientific calculators You may not use financial calculators or any programmable calculators that can be used to store formulas If in doubt bring your calculator to me prior to the exam date and I ll approve it APPROXIMATE SCHEDULE Exam dates may slide and order of presentation may change Additional required reading and videos will be posted on the course web site Class Dates 9 3 9 8 9 10 9 15 9 17 9 22 9 24 I Course Introduction Financial Markets and Risk Introduction to Course and Overview of the Financial System Chapters 1 and 2 Financial System Why Do Financial Intermediaries Exist Chapters 2 and sections of 8 Money and Risk Chapter 3 and Lecture Slides on Risk Finish Risk and Start Understanding Interest Rates Chapter 4 9 29 10 1 10 6 10 8 II Financial Markets and Interest Rates Understanding Interest Rates Chapter 4 Behavior of Interest Rates Chapters 4 and 5 Exam 1 Tentatively Wednesday October 8 10 13 10 15 Risk Structure and Term Structure of Interest rates Chapter 6 10 20 10 22 Commercial Bank Balance Sheet Chapter 10 III Commercial Banking 10 27 10 29 Commercial Bank Balance Sheet and Bank Regulation Chapters 10 and 11 11 3 11 5 Commercial Banking Industry Structure Chapter 12 11 10 11 12 Central Bank Structure Balance Sheet and the Monetary Supply Chapters 16 and 17 IV Central Banks and Monetary Policy 11 17 11 19 11 24 11 26 12 1 12 3 12 8 12 10 Exam 2 Tentatively Wednesday November 12 Tools of Monetary Policy Chapter 18 Tools of Monetary Policy Chapter 19 Tools of Monetary Policy and What Central Banks Should Do Chapter 19 Quantity Theory of Money Monetary Policy Theory and Transmission Chapters 22 and 24 Page 2 12 17 Final Examination Wednesday December 17 from 1 30p m 3 30 p m Exam location to be announced Page 3