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UNIVERSITY OF MARYLAND
DEPARTMENT OF ECONOMICS
ECONOMICS 330
Spring Semester, 2017
TYD-0130
Lecture: T and Th 9:30am to 10:45am
Office Hours: T and Th 3:30pm - 4:30pm
Dr. John Neri
Office: Morrill Hall-1106D
E-mail: [email protected]
[email protected]
REQUIRED
Cecchetti and Schoenholtz, Money, Banking, and Financial Markets (with Connect), 4th Edition.
McGraw Hill is the publisher.
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, LEARD SMART, HOMEWORK AND GRADES
Your grade will be determined as follows:
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Two (2) midterm exams
200 points (100 points each)
Comprehensive Final Exam
140 points
Five (5) problem set/data analysis
50 points (10 points each)
(12) Connect Homework Assignments 60 (5 points each)
Total
450 points
The two midterm exams (44 percent of your grade) will be a combination of multiple-choice, short
answer/problems. The final exam (31 percent of your grade) is all multiple-choice. The multiple-choice
section will be taken on a computer-grading sheet (scantron sheet) with a number 2 pencil. I will also
assign 5 graded problem sets (11 percent of your grade). We will attempt to return the graded short
answer portion of the exams and the problem sets one week after the due date. Graded written portion
of the exams and problem sets will be placed on the shelf outside Morrill Hall1106D. We will post the
grades to ELMS and you will be notified by e-mail. You will have one-week after grades are
posted on ELMS to raise questions in person regarding your grade on an exam or the 5 written
problem sets. I will not entertain any grade questions after the one week question period. All
exams and problems set that are not picked up 2 weeks after the grades are posted will be
discarded.
McGraw Hill CONNECT – The text comes with McGraw Hill CONNECT which contains the e-book
version of the text, on-line study modules and on-line homework. I will assign 14 CONNECT home
works for chapters covered in the course. The 12 highest Connect scores will be counted in the final
grade. I will also post non-graded Learn Smart Study Modules as a pre lecture study aid.
Students with total points less than or equal to 225 (50 percent) will receive a grade of “F” for the
course. I’ve taught this course many times. Students that get A’s and B’s in this course attend
lecture regularly. My desire is for you to do well, attend lecture. I may take random attendance for
bonus points.
WRITE YOUR NAME IN INK on your problem sets and exams. 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 that is not in the book (there are a lot) is “fair game” for
the exams. Private conversations are disruptive and rude to fellow students and your instructor and will not be
tolerated. You may NOT record my lectures.
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.
MAKE-UP EXAMINATION POLICY
Make-up Policy: Makeup exams and extended deadlines for assignments will only be given in cases of
excused absences, and official documentation is required. Exams and ALL assignments are deemed
Major Scheduled Graded Events, and therefore according to the new University excused absence
policy, student-signed honor statements attesting to illness do not apply. Excused absences are: illness,
death in the immediate family, religious observances, required school activities, and required court
appearances. Again, official documentation is required for all excused absences, including religious
observances which are part of the new policy. I will not accept a Health Center honor statement to
verify an illness. If you go to the Health Center and a doctor will not write you a note that means they
consider you well enough to continue with academic activities. For the policies to be followed in this
course on absences from examinations, make-up exams please see UNIVERSITY OF MARYLAND POLICY
ON EXCUSED ABSENCE
http://www.president.umd.edu/sites/president.umd.edu/files/documents/policies/V-1.00G.pdf
You must print and complete the Request-for-Excuse found on the course webpage and present a
valid University excuse to me within 24 hours of the scheduled exam in order to take the makeup. More than one exam on the same day is not a valid excuse for a make-up exam. DO NOT
ASK!
CALCULATORS
You may not use any type of programmable calculator that can be used to store formulas for exams. A
good calculator for this course and many other courses is a TI-30X scientific calculator (cost about
$15.00). I am not able to provide calculators for exams.
APPROXIMATE SCHEDULE (Exam dates may slide and order of presentation may change)
Class Dates:
I. Money and the Financial System
(1/26)
(1/31, 2/2)
(2/7, 2/9)
Introduction, Overview of the Financial System and Money - Chapters 1 and 2
Financial Instruments, Markets and Institutions – Chapter 2 and Chapter 3.
Finish Chapter 3 and start Chapter 4, Future Value, Present Value and Interest Rates
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II. Interest Rates, Financial Instruments and Financial Markets
(2/14, 2/16)
(2/21, 2/23)
(2/28, 3/2)
Present Value and Interest Rates and Understanding Risk, Chapters 4 and 5.
Understanding Bonds and Interest Rates – Chapters 5 and 6
Finish Chapter 6 and start Chapter 7 on Risk and Term Structure of Interest Rates
Exam 1 – Thursday March 2
(3/7, 3/9)
Risk Structure and Term Structure of Interest rates – Chapter 7
III. Financial Institutions
(3/14, 3/16)
(3/21, 3/23)
(3/28, 3/30)
The Economics of Financial Intermediation - Chapter 11, Start Chapter 12.
SPRING BREAK
Depository Institutions: Banks and Bank Management, Chapter 12
IV. Central Banks and Monetary Policy
(4/4, 4/6)
Regulating the Financial System begin Central Banking, Chapter 14 and Chapter 15
Exam 2 – Tentatively Thursday April 13 Tuesday April 18
(4/11, 4/13)
(4/18, 4/20)
(4/25, 4/27)
Central Banking and The Money Supply Process, Chapters 16 and 17
Tools of Monetary Policy and What Central Banks Should Do, Chapter 18.
Continue Chapter 18.
(5/2, 5/4)
(5/9, 5/11)
Money Growth, Money Demand and Modern Monetary Policy, Chapters 20 and 21
Money Growth, Money Demand and Modern Monetary Policy, Chapters 20 and 21
Final Examination – Monday May 15 8:00a.m.- 10:00 a.m.
Exam location to be announced.
Connect Assignments and Due Dates (Due dates may change depending on course
progress):
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10.
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14.
Sunday 2/5 at 11:45PM
Sunday 2/12 at 11:45PM
Sunday 2/19 at 11:45PM
Sunday 2/26 at 11:45PM
Sunday 3/5 at 11:45PM
Sunday 3/12 at 11:45PM
Sunday 3/19 at 11:45PM
Sunday 4/2 at 11:45PM
Sunday 4/9 at 11:45PM
Sunday 4/16 at 11:45PM
Sunday 4/23 at 11:45PM
Sunday 4/30 at 11:45PM
Sunday 5/7 at 11:45PM
Thursday 5/11 at 11:45PM
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