MASTER SYLLABUS
School of Business Administration, Sonoma State University
BUS 377 Financial Institutions and Markets (4)
I.
Catalog Description:
Study of the structure and functions of the financial system in the U.S. economy. Topics
include the role of financial intermediaries (including commercial banks), the money
market, sources and uses of long-term funds, interest rates and security prices, the role of
the Federal Reserve, monetary policy, and international capital markets.
II.
Prerequisites
Courses: Econ 201A and 201B and BUS 230A and 230B
Justification: It is assumed that the student is familiar with the fundamental concepts and
theories in economics and accounting as these ideas are used to develop the course
material.
III.
Course Learning Objectives
At the end of the course students should be able to:
A. Describe the structure and function of the federal reserve system.
B. Describe the structure and function of the regulatory system for the financial industry
particularly with respect to depository institutions.
C. Describe theories that explain various shapes of the yield curve and be able to carry
out the mathematics for the pure expectation theory forward rates.
D. Analyze bank performance for profitability, efficiency, capital adequacy, and
liquidity given the financial statement using.
E. Compare and contrast banks and finance companies.
F. Understand and carry out gap management to assess the interest rate exposure of
financial intermediaries and be able to use futures, options, and swaps to manage
risk.
G. Describe the nature, financial statements, management priorities, and business
environment of pension funds, insurance companies, thrifts, investment banks, and
mutual funds.
H. Compare and contrast the money market, the capital market, and the mortgage
market.
I. Understand the current environment of deregulation and financial and technological
innovation.
IV.
Course Materials
A textbook is normally required. Interent resources are also assigned.
V.
Teaching Methods
Lectures are used to present new information. Workshop-type class meetings review and
reinforce the concepts presented using numerical exercises. Internet assignments and
class project presentation by students are monitored and moderated by the instructor.
VI.
Evaluation Tools
Group assignments such as workshop problems and projects account for 50% of the
grade. Individual assignments include in-class exams and research papers and account for
50% of the overall grade. An overall score above 60% is considered sufficient and a score
above 90% is considered an excellent achievement and mastery of the material.
VII.
Course Content
1. Interest rates
2. Central banking and the Federal Reserve
3. Money markets, capital markets, mortgage markets
4.
5.
6.
7.
8.
9.
10.
11.
VIII.
Commercial banking and bank management
Risk management in financial institutions
Bank regulation
Thrifts
Insurance companies
Finance companies
Investment banks
Pension funds and mutual funds
Interdesciplinary Content
1. Topics that require graded work other than exams (and percent of course hours).
a. International/global issues
5%
b. Regulatory issues
15%
c. Technology issues
5%
2. Topics that do not require graded work other than exams (and percent of course
hours)
a. Political issues
0%
b. Social issues
0%
c. Demographic Diversity
0%