ECONOMICS 325 (001), MONEY AND BANKING – FALL 2008, 319 STIPES, T TH 2:00 – 3:15 PM
                                 Department of Economics, College of Business and Technology
               Accredited by the AACSB International - The Association of Advance Collegiate Schools of Business

LECTURER:                          Alice Melkumian
OFFICE:                            Stipes Hall 442 F
TELEPHONE:                         298-1032
WEB PAGE:                
OFFICE HOURS:                      T, TH 12:30 – 1:45 PM, W 10:00 – 12:00 PM, or by appointment.

Pre-requisite:                     Econ 231 (Principles of Macroeconomics)
Textbook:                          Stephen G. Cecchetti, Money, Banking, and Financial Markets.
Grading policy:
                                           Task                                    Points
                                Homework Assignments                                  60
                                          Exam I                                     120
                                          Exam II                                    120
                                         Exam III                                    120
                                       Final Exam                                    140
                                           Total                                     560

Your final grade for the course is based on the total number of points that you earn:
                A: 502 points earned and above (90% and above)
                B: 446 - 501 points earned (80%-89%)
                C: 390 - 445 points earned (70% - 79%)
                D: 334 - 389 points earned (60%-69%)
                F: 333 points earned and below (59% and below).

You are responsible: for the three exams during the semester and one final exam. No make-up exams will be
given unless the student and I made arrangements prior to the test date. The format of any make-up test will be
different from that taken by the general class. The Final Exam is a comprehensive exam: it covers all materials
from Exam I, Exam II, Exam III, and all additional material covered after Exam III.

You are responsible: for submitting all assignments on time. There will be approximately 8 periodic
homework assignments. Late assignments will receive a penalty of 15% per missed class period. All
assignments are due before lectures start. ASSIGNMENTS THAT ARE NOT TURNED IN AT THE

It is YOUR choice - extra credits: 1) short take-home quizzes based on your reading of the Wall Street Journal.
2) extra questions with extra points on of the exams.

Your education is too important to be interrupted! Zero tolerance will be exercised for those engaged in
distracting behaviors during class: you will be asked to leave the class room.

In case of Academic Dishonesty (cheating on ANY of class assignments) the student in question receives the
grade of “zero” for the assignment and an automatic “F” grade for the course.

In accordance with University policy and the Americans with Disabilities Act (ADA), academic
accommodations may be made for any student who notifies the instructor of the need for an accommodation
and provides documentation through Disability Support Services. It is imperative that you take the initiative to
bring such needs to the instructor’s attention, as he/she is not legally permitted to inquire about such particular
needs of students. Students who may require special assistance in emergency evacuation (i.e. fire, tornado, etc.)
should contact the instructor as to the most appropriate procedures to follow in such an emergency.

WEB address for student rights and responsibilities:

Final Exam: December 16th, 3:00 – 4:50 PM, room 319

Tentative (subject to change) Course Outline

Material for Exam I
Chapter 1: Introduction
Chapter 2: Money and the Payment System
Chapter 3: Financial Instruments, Financial Institutions, and Financial Markets
Chapter 4: Future Value, Present Value, and Interest Rate
Chapter 5: Understanding Risk
Chapter 6: Bonds, Bond Prices, and the Interest Rates

Material for Exam II
Chapter 7: The Risk and Term Structure of Interest Rates
Chapter 8: Stocks, Stock Market, and Market Efficiency
Chapter 11: Economics of Financial Intermediation
Chapter 12: Depository Institutions: Banks and Bank Management
Chapters 13 - 14: Financial Industry: Structure, Regulation, and Competition

Material for Exam III
Chapter 15: Central Banks in the World Today
Chapter 16: Structure of Central Banks: the Federal Reserve and the European Central Bank
Chapter 17: The Central Bank Balance Sheet and the Money Supply Process
Chapter 18: Money supply
Chapter 20: Money Demand: Theory and Facts

Final Exam
Chapters 1-8, 11-18, 20-21.
Chapter 21: Modern Monetary Policy and the Aggregate Demand (long-run)
Chapter 22: Business Cycles
Chapter 23: Modern Monetary Policy and Central Banks


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