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BA 4345

Money and Capital Markets Instructor: Mary Chaffin chaf@utdallas.edu Office: SM2.208 Office Hours: MW 3:30-5:00 p.m. and by appointment Web page: www.utdallas.edu/~chaf

Spring 2005 MW 2-3:15 p.m.

Required Text: Principles of Money, Banking, & Financial Markets, 11th Ed., by Ritter, Silber, Udell Recommended: Financial Calculator, Wall Street Journal(Available in the library if you do not subscribe) Course Description: This course focuses on money, financial markets and institutions. The objectives are: to provide a perspective on how financial markets and institutions fit in to the economy; to help you understand the importance of money, credit, and interest rates; to describe the function of various financial markets money markets, capital markets, foreign exchange markets, derivatives markets, and their numerous financial instruments; to provide a perspective on the business of financial institutions such as commercial/investment banks, investment funds and their regulation; to help you understand the Federal Reserve System and how it impacts monetary policy. Major Topics: Overview of Financial Markets and Institutions Determinants of Interest Rates The Securities Markets – Money, Bond, Mortgage, Stock, Foreign Exchange and Derivative Markets Depository Institutions – Commercial Banks and Thrifts Non-depository Financial Institutions The Federal Reserve System, Monetary Policy and Interest Rates Course requirements and Prerequisites: You should have successfully completed BA 3341 Business Finance. You are expected to have proficiency in time value of money concepts and calculations, spreadsheet modeling and Internet skills. Course Materials: Student lecture notes are available on Web CT. Students are responsible for assignments and assigned reading materials. Come to class prepared to discuss. Answers to the end of chapter questions are available on Web CT. Course Grading: You must take exams on the dates and times given. Students missing an exam will be required to take a comprehensive final exam. Each exam will last approximately one hour and will be problems and short answer. The final exam will last two hours and will be multiple-choice.

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A student that takes all four exams has the option to take the final exam but is not required to take the final. For students that take all four exams and do not take the final exam, each exam will count 25%. For students that take all four exams and choose to take the final exam, the top four grades will count 25%.

For students that are required to take the final exam, each exam including the final will count 25% of the student’s grade. Grades will be based on the following scale: 97+ = A+, 93-96.99 A, 90-92.99 A-. The breakdown is the same for other grades.

Market Tracking Assignment and Extra Credit: A market tracking assignment is available on Web CT. Questions from this assignment will be included on each exam. You may (optional) turn in a copy of this assignment for extra credit at the end of the semester. If your submission is complete and of high quality, I will add up to 3 points to your final average. A hard copy of the assignment is due between April 18 and April 24 at 5:00 p.m. The report should include a one page analysis of the data. NO ASSIGNMENT WILL BE ACCEPTED LATE. You should keep the data in a spreadsheet and be prepared to answer questions about it in class. I will randomly call on students during class. Being in attendance and prepared can add up to one point on your final course grade. Text Web Page: If you purchased a new copy of the text book, additional resources are available online at www.myeconlab.com . The course ID is: chaffin72401. Practice Problems: Practice problem sets are available on Web CT. These should be done prior to each of the exams. We will go over these in class upon request. They are not to be turned in. Readings: Periodically articles from the Wall Street Journal or other publications will be posted on Web CT. You are responsible for reading the articles. Test questions may come from the articles. Class Schedule: January 9 January 11 January 18 January 23, 25 January 30 February 1 February 6, 8 February 13, 15 February 20, 22 February 27 March 1 March 13 March 15, 20 March 22 March 27, 29 April 3 April 5 April 10, 12 April 17 April 19 April 24 May 1

Ch 1, 2 Introduction Ch 3 Financial Instruments, Markets, Institutions Ch 4 Interest Rate Measurement Ch 5 Determinants of Interest Rates Exam 1 (2, 3, 4, 5) Ch 6 Security Valuation Ch 8 Money and Capital Markets Ch 9 Derivative Markets Ch 10 Foreign Exchange Markets Exam 2 (6, 8, 9, 10) Ch 11 Financial Intermediation Ch 12 Depository Financial Institutions Ch 13 Non-depository Financial Institutions Ch 14 Financial Contracts Ch 15 Regulation Exam 3 (11, 12, 13, 14, 15) Ch. 17 The Federal Reserve System Ch 18 The Central Bank and the Money Supply Ch 19 The Instruments of Central Banking Exam 4 (17, 18, 19) Ch 29 Economic Indicators Final Exam (Optional if you have taken all other exams) – Bring Scantron

Policy on Cheating: Students are expected to be above reproach in all scholastic activities. Students who engage in scholastic dishonesty are subject to disciplinary penalties, including the possibility of failure in the course and dismissal from the university. "Scholastic dishonesty includes but is not limited to cheating, plagiarism, collusion, the submission for credit of any work or materials that are attributable in whole or in part to another person, taking an examination for another person, any act designed to give unfair advantage to a student or the attempt to commit such acts." Regents' Rules and Regulations, Part One, Chapter VI, Section 3, Subsection 3.2, Subdivision 3.22. Violations of class rules will subject you to discipline from the Dean of Students. I take scholastic dishonesty very seriously.