Required for this course:

The following are required: Cecchetti & Schoenholtz’s Money, Banking, and Financial Markets, (5th). McGraw-Hill: 2017.

Connect Access is required.  Connect is an online program that will have assignments and information for this course. You are not required to have a physical copy of the book. Connect access comes with an electronic copy of the book. However, if you like to have a physical copy, you can purchase that.

      -Ebook and Connect Access ISBN: 978-1-259-92724-9

      -Hard Cover Copy of book and Connect Access ISBN: 978-1-260-04480-5

Examination of the role of money, financial markets, and financial intermediation in the American economy, with a particular focus on commercial banks.  Includes an in-depth look at the money supply process and the Federal Reserve System.  Prerequisites: EC201 and EC202.

The focus of this course is the American banking system and the different functions that it performs in the economy. We will look especially carefully at two of these functions: financial intermediation and money creation. Financial intermediation involves the shifting of control over a society’s resources from people who currently have more income than they want to spend (savers or lenders) to people who want to spend more than they currently have (borrowers). Although banks are only one component of this process, the role that they play in it is a crucial one. The banking system also plays a key part in the process of money creation. We will develop a detailed model of the money supply process and consider how complications in the process affect the ability of the Fed to control the money supply. We will also take a careful look at the Fed’s tools of monetary policy. 

Students who successfully complete this course will:
1. understand the role of financial intermediaries in the American economy;
2. understand the role that banks play in the process of financial intermediation;
3. understand the crucial importance of a stable monetary system to the functioning of a modern economy;
4. understand the complexities of the money supply process and the role that the Federal Reserve
System plays in it;
5. exercise and improve their analytical and writing skills;
6. consult a variety of sources, including the Internet, to keep up with new developments in the field of Money & Banking.