EC 301: Money and Banking
Prerequisite Econ 211 & Econ 212 (Principles of micro and macro-economics)
Instructor Dr. Jacqueline Khorassani
Office Hours & MWF: 10:00-11:00
Location TTH: 13:00-14:00 (with the exception of January 27 and April 7)
and by appointment
Voice 740-376-4621 (office)
Web Page http://www.marietta.edu/~khorassj
WebCT http://webct.marietta.edu Use this device to
1. see the course contract
2. access the discussion board
3. see your grades
4. see the weekly study guides and class notes
5. see the course announcements
6. send me private emails
On line Resources http://www.coursecompass.com Use this device to submit your online assignments.
Course Description Can there be economic activity without money? Yes; but money is the grease that
lubricates the wheels of economic activity. Without money, we will have an economy
with squeaking wheels. What if you have more grease that you can use at this time and
some one else has wheels but no grease? Banks (and other financial institutions) enable
you to make your grease available to those who can use it. Nations can not have a
healthy and growing economy without a sound monetary system and policy. Changes in
the supply of money and credit can affect the rate of economic growth, the level of
employment, and the rate of inflation. This course is designed to help students
understand exactly why and how money and credit matters. To aid this understanding,
economic tools and concepts will be developed.
Textbook Options The Economics of Money, Banking, and Financial Markets by Frederic S. Mishkin, 8th
Edition, Pearson-Addison Wesley, 2007. You may choose to
1) buy a used book (the price at Marietta bookstore is $121.25. Then you will also pay
$40 to purchase the access to the assignment bank.)
2) buy a new book that gives you access to the assignment bank (not all new books do
this). The price of this package is $161.50 at MC bookstore.
3) buy access to assignment bank + electronic version of the text for $70.
4) buy access to assignment bank + print companion for $75.
5) buy access to assignment bank + electronic version of the text + full color 3- hole
punched version of the text shipped directly to you for $105.
Course Objectives & Upon the successful completion of this course you will have a better understanding of
1. the role of money and credit in the economy. (Chapters 1, 2, and 3)
2. the effects of various factors on the price of money (interest rate). (Chapters 4, 5,
3. the role of financial intermediaries in the economy. (Chapters 8, 9, 10, and 11)
4. the role of the central bank in the economy. (Chapters 12, 13, 14, 15, 16)
Attendance Policy Attendance in this class is mandatory. Missing a class affects your participation
grade. This holds unless you have an excused absence. Classes missed due to
participation in college-sponsored co-curricular events are considered excused
absences. In order for the absence to be excused, I must receive a written notification
before or immediately after you miss the class. Regardless of the nature of your
excuse, it is your responsibility to contact me immediately after you miss a class to find
out about the new assignments and everything else you have missed.
My Teaching Philosophy I believe that straight lecturing (whether on line or off line) is not the most effective
way to teach economics. I also believe that you are capable of studying and
understanding most of the material covered in the book on your own if you give it your
best shot. Thus, I am not going to repeat or summarize the chapters of your textbook
for you. In other words, I am not going to be a transmitter of knowledge. Rather I
view myself as designer. Further, I view students as knowledge constructors rather
My task therefore, is to provide circumstances that facilitate your learning. In order to
do that, I will
(1) design a map that will lead you toward the construction of your knowledge (study
guide on WebCT);
(2) help you figure out how to ask the right questions when you feel lost (in class and
(3) ask you questions in an attempt to find out if you are on the right track (in class, on
CourseCompass and on WebCT);
(4) give clear and meaningful answers to your questions (in class and on WebCT).
I realize that you are different form each other. You have different backgrounds,
personalities, skills and learning styles. I plan to give each of you as much support and
guidance as possible.
Your task is
(1) to study the map;
(2) to follow the map (Be prepared to be confused and frustrated at times; these are the
necessary stages of learning.);
(3) to ask questions when you feel lost (I always prefer an stupid question to no
question as the alternative is remaining stupid.);
(4) and to respond to my questions (Be prepared to be wrong sometime. Being wrong
is okay as making mistakes is an inevitable part of learning.)
Our joint task is
to build a learning environment in which we feel free and comfortable to express our
thoughts; to respectfully disagree with each other at times; and to learn from each other.
Means of Our main means of communication is the classroom. The students are expected to
Communication attend classes on a regular basis. Your participation grade depends, in part, on your
attendance. In addition, I may also communicate new information to you via WebCT,
CourseCompass or your college designated email account. Similarly, please feel free
to visit me in my office, call me, or e-mail me to discuss your concerns and questions. I
have also made it possible for you to send me your comments anonymously via my
Grading The following table shows the weight of different assignments in your final grade.
Top 3 exams (25 75%
The students will be evaluated as follows:
Total Grad Total Grad Total Grade
% e % e %
97 A+ 93-96 A 90-92 A-
87-89 B+ 83-86 B 80-82 B-
77-79 C+ 73-78 C 70-72 C-
67-69 D+ 63-66 D 60-62 D-
WebCT allows you to keep track of your points.
Examinations You will be given four exams according to the following schedule.
Exam 1: Friday, February 6
Exam 2: Friday, March 6
Exam 3: Friday, April 10
Exam 4: Friday, May 1, 3-5:30PM
Exams 2, 3 and 4 are semi-comprehensive. That is, in addition to the new material, they
may also cover a specified section of the topics covered by the previous exams. Exams
may consist of multiple choice questions, analytical questions, and graphical or
numerical problems. When calculating your course grade, I only take your top 3 exams
Here is some information on how I will grade your exams. You will receive 5 points on
each correct answer you choose on the multiple choice questions. There is also a
penalty of 1 point (-1 points) if you choose an incorrect answer. This grading method is
consistent with the simple fact that in life we are often rewarded for our correct
decisions and penalized for our incorrect decisions. In my opinion, it is better to admit
that you don’t know the answer to a question rather than pretending that you do. I
simply want to discourage you from relying on your luck when answering a multiple
choice question. Moreover, on all other questions, I will give you 1/5 of the grade if
you simply admit that you don’t know the answer. For example if you have no clue on
how to answer an essay question that carries 5 points, it is better to simply say so and
receive 1 point instead of giving a wrong answer and receive 0 points.
Make-up Policy If you miss an exam or an in class assignment and have an excused absence, I will meet
with you to discuss your options. If you miss an exam or an in class assignment because
of an unexcused absence, you will receive a grade of zero on that exam or assignment.
If you miss an online assignment for any reason, you will receive a grade of zero.
Online Assignments This semester, you will work on numerous online assignments. Each assignment has
10 points. In calculation of your course grade, I will drop the lowest 20% of your
online assignments. The overall weight of these assignments in your course grade is
15%. To access your on line assignments, you must register at
www.coursecompass.com The course ID is khorassani64106.
The online assignments have firm due dates and can’t be made up at a later date.
Do them early to avoid any emergencies preventing your completion before their due
Offline Assignments Five percent of your course grade depends on various offline (in class or out of class)
assignments. The nature and the length of these assignments will be discussed as the
semester progresses. Each assignment will have 10 points. In calculation of your
course grade, I will drop the lowest 20% of your offline assignments.
Weekly Study Guides In the beginning of each week, look for a study guide for that week on WebCT. Study
Guides are designed to guide you in your studying and keep you on track. Make sure to
carefully read these study guides as soon as they become available and post your
questions on WebCT’s Discussion Board. Your questions must reflect that you have
done your best to grasp the material. Your participation grade depends, in part, on the
quality and the quantity of your posted questions. Note: if you don’t ask any
questions on WebCT, I assume that you have studied the assigned material and
have no questions on them.
Classroom Slides At the end of each week, look for the classroom PowerPoint slides on WebCT.
Participation Grade Five percent of your grade is determined by your participation. To maximize your
participation grade you must (1) attend classes; (2) actively participate in class by
asking questions and responding to questions asked by others; (3) post questions or
respond to others’ questions on WebCT’s discussion board.
Academic Dishonesty: "Dishonesty within the academic community is a very serious matter, because
dishonesty destroys the basic trust necessary for a healthy education environment.
Academic dishonesty is any treatment or representation of work as if one were fully
responsible for it, when it is in fact the work of another person. Academic dishonesty
includes cheating, plagiarism, theft, or improper manipulation of laboratory or research
data or theft of services. A substantiated case of academic dishonesty may result in
disciplinary action, including a failing grade on the project, a failing grade in the
course, or expulsion from the College" (Marietta College Undergraduate Programs,
Have A Disability? If you need accommodations due to documented disability, contact the Academic
Resource Center (Andrews Hall, Third Floor, 376-4700) at the beginning of the
semester for further instruction.
In order to familiarize yourself with the college policy please study the relevant pages
Academic Warning, of Marietta College 2008-2009 Undergraduate Catalog available at
Probation, Dismissal http://www.marietta.edu/academics/records/index.html#Catalogs/UG%20Catalogs/inde