Dr. Mary Bumgarner
BB 319 (770) 423-6341
Mary_Bumgarner@coles2.kennesaw.edu
Economics 4210
Money and Financial Markets
Spring 2005
Course Description:
Economics 4210 analyzes the operation, structure, regulation and control of financial
markets, emphasizing the effects on the level and term structure of interest rates on
economic activity and business decisions. The course also focuses on monetary theory,
monetary policy and the various roles played by the Federal Reserve System in the
economy.
Course Objective:
At the end of the course, the successful student will have a deeper, more analytical
understanding of how the United States financial system is structured and functions. He
or she also will have a better understanding of the role played by the Federal Reserve and
the impact it has on financial institutions and markets.
Course Prerequisites:
Successful completion of Economics 2100 and 2200 as well as Finance 3100 is required.
Office Hours:
Office hours will be held from 12:15 – 1:30 PM on Tuesday and Thursday or by
appointment.
Text:
Financial Markets and Institutions, 4th edition, Frederic S. Mishkin and Stanley G. Eakins,
Addison Wesley Longman, 2003.
The Wall Street Journal is required for two of the assignments.
Examinations and Quizzes:
Two exams are scheduled, a mid-term examination and a final. Anyone who misses the
mid-term exam may take a make-up exam, providing he or she notifies the instructor that
he or she will not take the test at the scheduled hour and takes the make-up test within
one week of the scheduled exam. ONCE AN EXAM HAS BEEN RETURNED TO
THE CLASS, A MAKE-UP TEST MAY NOT BE TAKEN AND THE STUDENT
WILL RECEIVE A GRADE OF ZERO FOR THAT TEST. Make-up exams are
given at the convenience of the instructor and may be scheduled during class time. ALL
MAKE-UP EXAMS WILL BE PENALIZED ONE-HALF A LETTER GRADE.
Make-up exams are a privilege, not a right; they should be utilized only in emergencies.
Exams may not be taken early except in exceptional circumstances.
Approximately four to five quizzes will be given. Quizzes MAY NEVER BE MADE
UP. If a student misses a quiz, he or she will receive a zero. All quizzes are announced.
Exam Schedule:
Mid-Term Exam
Final Exam
February 24, 2005
May 5, 2005
Term Project:
The term project is comprised of three assignments to be completed during the term.
These assignments must be typed and submitted on time. Late assignments will be
penalized five (5) points for every class session beyond the due date.
Final Grade:
The final grade is determined as follows:
Mid- Term
Final
Project
Quizzes
25%
25%
25%
25%
Grading Policy:
All grades are based on the student’s demonstrated understanding of the concepts taught
in the course and his/her effectiveness in applying those concepts to real world problems.
Professional and personal circumstances that occur during the semester that preclude the
student from performing at a satisfactory level are not considered in the determination of
the final course grade. Kindly do not make requests for special projects, papers, extra
work, etc. to improve your grade.
Class Withdrawal Procedure:
If you wish to withdraw from this course after the schedule change period, you must
obtain a withdrawal form in the Registrar’s Office, and complete it according to
instructions. CEASING TO ATTEND CLASS OR ORAL NOTICE THEREOF
DOES NOT CONSTITUTE OFFICIAL WITHDRAWAL AND WILL RESULT IN
THE GRADE OF “F.” You are reminded that after the official withdrawal date you
many not withdraw without penalty except in cases of extreme hardship as determined by
the Registrar of the University. THE LAST DAY FOR WITHDRAWING
WITHOUT PENALTY FORM THIS COURSE DURING SPRING SEMESTER
2005 IS MARCH 4, 2005.
COURSE OUTLINE
TOPICS
TEXT CHAPTERS
PAGES
Introduction
Fundamentals of Interest Rates
Central Banking
Foreign Exchange Market
International Financial System
The Efficient Market Hypothesis
Theory of Financial Structure
1, 2
3, 4, 5
6, 7
12
13
10
14
3-34
37-145
149-211
311-338
339-369
267-290
371-401