Money and Banking
1. Catalog Entry
Money and Banking
Credit hours (3)
Prerequisites: ECON 205
A study of the functions of money in economic society and of the impact of monetary policy on national income, prices, employment, and interest rates. The role of banking in the money supply process is examined.
2. Detailed Description of Course
The course teaches the definition and role of money in the economy. It also focuses on the monetary sector of the economy and describes its structure, its operation, and its interaction with the real sector. The role of the central banking on the production of money and conduct of monetary policy is highlighted. Finally, the monetary aspects of International Relations are studied.
1) Overview of Money and the Financial System
2) Financial Markets and the role of interest rates
3) Financial Institutions: Banking Structure, Competition, and Regulation
4) The Central Bank (Fed) and the Conduct of Monetary Policy
5) International Finance and Monetary Policy
6) Monetary Theory
3. Detailed Description of Conduct of Course
The following teaching strategies may be employed:
Lectures, discussions, and homework problems are required. Various written assignments are also required.
4. Goals and Objectives of the Course
At the end of the course students are expected to:
1) Know the role of money and the general outline of the financial system.
2) Discuss financial markets and the determinants of interest rates.
3) Examine the structure and regulations of commercial banking.
4) Analyze how the Fed conducts monetary policy and determine the effects of that policy.
5) Describe the structure of the international finance system and foreign exchange markets.
6) Explain how monetary policy is transmitted to the economy.
5. Assessment Measures
May include: tests, homework, reports, class participation.
6. Other Course Information
Review and Approval
September 2, 2014
December 2013 C. Vehorn
April 16, 2012
December 2004 N. Hashemzadeh