The
Arthur J. Kania School of Management
Economics/Finance
Department
Course
Number: FIN 581 Semester: Spring 2002
Course
Title: Financial Institutions Office: Brennan Hall 310
Instructor: Dr. John N. Kallianiotis Office
Hours: Tues.- Thurs.: 10:00 - 2:00
and 5:30 - 6:30 P.M. and by appointment
Telephone:
941-7577 and 941-4048
E-mail: jnk353@uofs.edu
REQUIRED TEXT: Money and Capital Markets, Seventh Edition, by Peter S.
Rose, Irwin, Homewood, Illinois, 2000.
The Wall Street Journal (subscription is
suggested)
DESCRIPTION
OF COURSE:
This course is designed to provide to MBA
students details on the financial institutions in United Stated and on Money
and Capital Market in general. It will
determine their functions, the major players in this market and their
interrelations in the national economy.
Monetary and Fiscal policy and the most watched player, The Fed, will be
covered in detail together with fiscal policy.
The money market instruments will be mastered, too. Material covered will assist the student to
better understand the economic, social and political science in America.
OBJECTIVES:
The major objectives of the course are:
1. To familiarize the students with the
principles, concepts, and terminology of the market players, the markets, and
the instruments.
2. To master topics on Financial
Institutions, interest rates, monetary and fiscal policy.
3. To learn how the economy works and to
connect the monetary with the real sector of our economic system.
TOPICS
COVERED:
Topics Classroom
Hours
1.
The Financial System
in Perspective 4
1. The Role of
the Financial System in the Economy
2. Financial Assets, Money, and Financial
Transaction
3. Sources of Information for Financial Decision
Making
In
the Money and Capital Markets
II. Goverment in the Financial Markets 6
19. Central Banking and the Role of the Federal
Reserve
20. The Tools of Monetary Policy
21. Indicators and Goals of Monetary Policy
22. The Treasury in the Financial Markets
23. State and Local Governments in the
Financial markets
III. Financial Institutions in the Financial
System 4
4. Commercial Banks and Money Creation
5. Nonbank Thrift Institutions: Credit Unions,
Savings
and
Loan Associations, Savings Banks and Money
Market
Mutual Funds
6. Insurance Companies, Pension Funds, and Other
Financial
Institutions
1.
Regulation of Financial
Institutions
IV Interest Rates and Security Prices 8
8. Interest Rates in the Financial System
9. Relationships between Interest Rates and
Security Prices
10. Inflation, Yield Curves and Duration: Their
Relationship
to
Interest Rates and Security Prices
11. Marketability, Default Risk, Call
Privileges, and Other
Factors
Affecting Interest Rates
12. Interest
Rate Forecasting and Hedging Against Interest Rate
Risk
13. Financial Futures Contracts and Options on
Futures
1.
The Money Market 6
1.
Characteristics of the
Money market
15. Treasury Bills, Dealer Loans, and Repurchase
Agreements
1.
Federal Funds,
Negotiable Cds, and Loans from the Discount Window
2.
Commercial Paper and
Federal Agency Securities
1. International Money market Instruments:
Bankers’ Acceptances and Euro dollars
VI. The Consumer in the Financial Markets 5
24. Consumer Lending and Borrowing
25. The Residential Mortgage Market
VII. Business
in the Financial Markets 3
26. Business Borrowing in the Money and Capital
Markets
27. Corporate Stock
CLASS MEETING:
The
class meets for 14 sessions of 2 hours
and 40 minutes duration, plus a final examination.
TEACHING METHODS AND
ASSIGNED READINGS:
The
teaching method will be lectures and classroom discussions of the daily
economic scene. Homework assignments
and outside readings will be announced in the classroom. A group project will
be announced in the classroom.
Material will be put on reserve library, too. There will be two exams*
(33% each) and your assignments together with your attendance, class participation and performance will
count for 33% of the course.
______________
* The midterm exam will be on March 21, 2002 and the Final on May 16, 2002.
Contact
Information Courses
Taught Research Interests Downloads
University of Scranton