1
Money and Banking ASSIGNMENT 1 DUE BEFORE CLASS ON 9/2
N. Sheflin
NOTES By the end of this course you will: • have a useful understanding of the properties, role, and importance of money and the financial system and how they impact the economy. • Understand what banks do, why, and how they are regulated • Understand the goals, tools, targets and strategies of monetary policy • be able to read about monetary and financial issues in the paper or online and discuss them with parents, relatives, friends, employers • understand how the financial system works and understand a bit about investing and personal finance • have a better idea about what to do in college, how to choose a major, career and graduate opportunities in economics 5 Steps to Success (in Money and Banking at least): 1. Read the GETTING STARTED guide at http://econweb.rutgers.edu/sheflin/mbf08/GETTINGSTARTEDMB.pdf and GET STARTED a. Get the etext or print text of Mishkin 8th edition along with Myeconlab in Course Compass access and the iclicker and register the clicker (you can update the ebook to a printed looseleaf version for $35 online) b. Get into Course Compass (CC), read the syllabus and faqs c. Do assignment 1 – reading, applications, online HW ‘quiz’, for Tuesday 9/2 d. Take the online pre-test before Friday 9/5 (available by 8/30) 2. Each week a. Look at the class slides in CourseCompass for that weeks classes b. After each class, review the slides and notes the same day i. Post any questions on the discussion boards ii. Ask questions in class c. Look at the assignment for the next week in Course Compass (available by Thursday each week) d. Read the chapters and additional reading and do any applications e. Do the online multiple choice homework ‘quiz’ in CC and use the discussion boards to ask questions about it f. Contribute to, or at least read, the BIG QUESTIONS WIKI , the ESSENTIAL QUESTIONS WIKI and the CURRENT EVENTS WIKI (more in class) g. Review the graded homework and the WIKIs from the previous week 3. Ask questions in class/ post or answer questions on discussion boards 4. Test yourself- through the end of chapter questions, review quizzes in the chapter, flashcards, the big questions and the homework. And by trying to explain things out loud to your cat, your roommate, or your wall (don’t be offended if your cat laughs at you) 5. Keep up with the course and get interested by: a. reviewing class slides and homework each class day (don’t wait for the weekend or the end of the semester) b. reading a newspaper or online source daily, looking for macro or other articles relevant to what we are covering c. posting and answering discussion board questions d. contributing to and/or reading the Big Question, Essential Question and Current Events WIKIs e. Trying to debate money, banking and financial system issues with attractive people KEY POINTS This assignment provides an overview of some of the issues we will cover in the course and a review of real and nominal GDP and price indices and deflating GDP and calculating growth rates and inflation rates.
2
READING Mishkin Chapter 1, and Appendix to chapter 1 MULTIPLE CHOICE QUESTIONS below FLASH CARDS if you have the eText, look at the flashcards in the Textbook and Resources link, if not look at the key concepts at the end of the chapters and try to define them out loud. NEWS From a recent Wall Street Journal or New York Times, or any respectable on-line source, find examples of any of the following, and bring them up in class Monetary Theory, Monetary Policy, Inflation, Business Cycles, Recession, Financial System, Interest rates APPLICATIONS Take a look at some jobs in economics and finance at the BLS Occupational Outlook Handbook: http://www.bls.gov/oco/ocos259.htm http://www.bls.gov/oco/ocos122.htm http://www.bls.gov/oco/ocos055.htm SOME BIG QUESTIONS (these will be posted and answered on a Wiki) 1. Why take this course? 2. How does money ‘matter’? 3. What do Banks do? 4. How do the stock, bond and foreign exchange markets matter? 5. Why do we calculate real GDP? Nominal GDP? Price indices? Inflation rates?