Weber State University
Department of Economics
Syllabus ECON 3200
Money and Banking
TR 10:30am - 11:45am Dr. Doris Geide-Stevenson
Office: WB 232
Spring 2012 Phone: 626-7634
Office Hours: MWF 11:20am - 12:20pm, TR 10am - 12pm and by appointment.
Course Description: Special focus of this course will be to understand and analyze the financial
crises of 2008 with its domestic and global implications. In presenting a detailed description and
analysis of the U.S. financial system (institutions, markets and instruments), this course aims at
understanding the features of a well-functioning financial system before analyzing the crisis.
Both micro- and macroeconomic theory approaches will be used to explain the changing
structure and the role of financial markets in the economy. A basic understanding of choices
made under uncertainty and the concept of asymmetric information will be used to analyze the
microeconomic structure of various financial markets. In exploring the effects of Federal
Reserve (monetary) policy on financial markets and the economy (output, employment and price
level), the course will draw on and expand previously developed macroeconomic theory, in
particular the aggregate demand/aggregate supply framework. While the financial system of the
U.S. will be the focus of the class, we will also touch on some international topics.
Prerequisites: Passing ECON 2020 with a grade of C- or better.
Course Objectives: At the completion of this course you should be able to...
Describe the financial system in the U.S. and how the financial system can break down.
Understand how economic and regulatory forces shape the financial system.
Explain how various interest rates are determined.
Read and interpret financial information in the Wall Street Journal and other financial
newspapers (e.g. Financial Times and Economist).
Describe the role of the Federal Reserve in the U.S. economy and analyze the effect of
different monetary policy measures as well as the Fed response to the financial crisis.
Explain the causes and consequences of a financial crisis.
Apply demand and supply analysis more confidently - especially to particular financial
Understand the implications of uncertainty and asymmetric information for the efficient
functioning of financial markets.
Apply the principles of economic analysis to the regulation of the financial sector.
more confidently devise and implement a research project.
Required Text: Ball, Laurence, Money, Banking, and Financial Markets, 2012, 2nd edition,
Worth with access to ECONPortal.
Articles on current events will be made available in class or online. Instructions to access these
materials will be given in class.
Optional: Study Guide to accompany Money, Banking, and Financial Markets.
Wall Street Journal (15 week student subscription available for $19.95).
Midterm Exam (2) 40 % (20% each)
Research Paper 20 %
Assignments 20 %
Final Exam 20 %
The exams will consist of multiple choice problems, essay-type questions and problems.
Homework assignments are designed to help you prepare for the exam and to help you in
navigating the Wall Street Journal. In reviewing material it is essential that you cover both, a
complete set of lecture notes and the readings assigned in class (see this syllabus for a tentative
reading list). Not all the readings may be covered in your lecture notes, however you are
responsible for all assigned materials.
I do not accept late assignments. Assignments are due at the beginning of class at the specified
due date. Should you anticipate not being able to hand in an assignment on time, you have to
contact me in advance in order to make possible alternative arrangements. Most assignments
will be completed online. In order to complete the Self-Test Quizzes, access the free site
http://bcs.worthpublishers.com/ball2/#t_667492____. In order for me to get the results of these
quizzes, you need to enter my e-mail address: firstname.lastname@example.org.
Over the course of the semester, you are required to complete a research paper. This paper will
be partly based on your reading of the Wall Street Journal. You will be asked to find and
synthesize articles that describe and analyze the current financial structure, monetary policy or
regulatory changes in the United States. I will provide more detailed explanations for this
Policy on Cheating: The work you turn in must be your own. If you are caught cheating on the
term paper or a quiz/exam you will fail this course. Collaboration on the assignments is
encouraged. However, while it is acceptable to discuss your approaches to solving homework
assignments, you are not to simply copy an assignment from another student. In this case, both
students are guilty of cheating. Students who are found to cheat or plagiarize will receive a grade
of E for the class. Please refer to the WSU Student Code (see http://documents.weber.edu/ppm/6-
22.htm under part D in section IV). A detailed list of what constitutes cheating is also found at
Make-up Exams: It is your responsibility to attend the in-class and testing center exams
scheduled below. Should you be unable to attend the exams on the dates indicated below, you
have to let the instructor know in advance of the exam (see voice mail and department phone
number above). The instructor reserves the right to schedule any make-up and determine the
form of the exam.
Special Accommodations: If you have special needs, it is your responsibility to contact me
during the first week of classes. Services for Students with Disabilities (SSD) in room 181 of the
Student Services Center (phone: 626-6413) will coordinate reasonable accommodations.
Tentative Course Outline and Readings
Please prepare by reading the relevant chapters in advance. After class, compare in how far
lecture notes and readings 'match up'. Remember to ask questions and take the time required to
carefully go through the material. During class I will indicate if there are deviations from the
time plan outlined below.
Jan. 3 Introduction
Jan. 5 No Class
Jan. 10 Economic Functions of Financial Markets, Chapter 1
Financial Crisis, Chapter 18.1 – 18.4
Jan. 12 Chapter 2, Money and Central Banks
Jan. 17 Chapter 3, Asset Prices and Interest Rates
Jan. 19 Chapter 3, Asset Prices and Interest Rates
Jan. 24 Chapter 4, What Determines Interest Rates?
Jan. 26 Chapter 4, What Determines Interest Rates?
Jan. 31 Chapter 4, What Determines Interest Rates?
Feb. 2 Chapter 5.1. and 5.2, Securities Markets
Feb. 7 Chapter 5, Securities Markets
Exam 1 - SSC Testing Center, Wednesday Feb. 8, 12:00pm - Saturday, Feb. 11.
Feb. 9 Review (optional)
Feb. 14 Chapter 7, Asymmetric Information in the Financial System
Feb. 16 Chapter 7, Asymmetric Information in the Financial System
Feb. 21 Chapter 8, The Banking Industry
Feb. 23 Chapter 8, The Banking Industry
Feb. 28 Chapter 9, Banking Business
Mar. 1 Chapter 9, Banking Business
Mar. 6 Chapter 10, Bank Regulation
Mar. 8 Chapter 10, Bank Regulation
Exam II, SSC Testing Center, March 7 – March 10
Mar. 13 -15 Spring Break – No Classes
Mar. 20 Chapter 11, Money Supply and Interest Rates
Mar. 22 Chapter 11, Money Supply and Interest Rates, 12.1
Mar. 27 Chapter 12, Short-Run Economic Fluctuations
Mar. 29 Chapter 12, Short-Run Economic Fluctuations
April 3 Chapter 13.1 - 13.3, Economic Fluctuations, Monetary Policy and the Financial System
Apr. 5 Chapter 14.1
Apr. 10 Chapter 15.3
Apr. 12 Chapter 16. 2 Monetary Institutions and Strategies
Final Exam: Thursday, April 19, 11:00am - 12:50pm
Instructions to sign up for ECONPortal
To sign up for ECOn 3200 course, you should:
1. Go to http://courses.bfwpub.com/ball2e.php (Mac users need to use Firefox).
2. Click on the link "REGISTER AN ACTIVATION CODE."
3. Your students will be prompted to follow the on-screen instructions to find your course. They
will start by selecting the school's state/province, the school name, then their instructor, course,
4. Your students will enter the activation code that came with their textbook or that they
purchased from us. They will also be asked to enter their email address, choose a password and
they will be ready to go!
5. Your students can also purchase access on the website by clicking on the “PURCHASE” link.