Untitled 0

An understanding of the connections between the financial system and the economy.

The financial system, the economy, and the Federal Reserve are interconnected. The behavior of financial variables and financial markets can only be understood by using basic economic analysis and understanding the connections between them and the economy.

At the end of the course you will be able to explain and apply the following key principles.

· Prices of assets and so interest rates are determined by supply and demand in markets.

· Economic conditions and expected future economic conditions are key determinants of asset prices.

· Banks exist primarily because imperfect information about borrowers’ prospects for making loan payments makes it costly for most borrowers with good prospects to raise funds by selling securities.

· Because of imperfect information banks raise many more funds by borrowing from banks than by selling securities.

· Banks, like other firms, are in business to make profit but have to balance return and risk.

· Shocks, such as large changes in asset prices or the costs of production, create fluctuations in economic activity and the overall price level.

· In the short run changes in the money supply affect real interest rates and so real output, so central banks may be able to dampen the effects of economic shocks on output and employment.

· Well-functioning financial markets are important for economic stability and economic growth.

Economists assume that people are motivated to make themselves well off given the incentives and the constraints they face. In analyzing the effects of changes economists consider the resulting sequence of effects. Studying economic models based on these approaches will improve your ability to make decisions. Studying economics is mental exercise which strengthens your mind.

Economists apply mathematical concepts to understand and illustrate economic behavior. Learning these applications will improve your ability to apply mathematics.

“In order to be able with any safety to interpret economic facts, whether of the past or present time, we must know what kind of effects to expect from each cause and how these effects are likely to combine with one another."

Come to class prepared to learn. Get to class on time. Ask me, not your neighbor, questions. Keep your cell phone, laptop, and other electronic devices put away. Pack up your notebooks only after I have ended the lecture. I can lecture more effectively and students learn better when there are not distractions. If you don’t want to be in class, don’t show up.

Read the text. It is written to engage you in learning. Sections covered in lecture are listed on the calendar, so you can read them before coming to class. You are responsible for all the material in the text even if I do not cover it in class. If you actively engage in reading, you will learn to teach yourself which alums report is a very important skill for having a rewarding and successful career.

When reading the text some students take notes or write key points in the margin.

Use the study guide. It provides practice and feedback. Use it to determine what concepts you need to study further.

Study on a regular basis. Doing so is a much more effective way of learning than cramming.

Use office hours, email or make appointments to get help with topics or concepts you have trouble understanding.

The Oxford Dictionary defines studying as the devotion of time and attention to acquiring knowledge on an academic subject, especially by means of books

If you approach your education the same way you would approach your professional career or operating your own business, you should spend about two-three hours studying outside of class for every hour you spend in class.

To a large extent how much you get out of a class depends on the efforts you make. It’s not simply the number of hours you are in class or the hours you spend studying, but how effectively you use this time.

When you study you should have two goals in mind. First, study with the intention of increasing your understanding of the material. Second, work to perfect your ability to do problems. Make notes of errors in your thinking and problems you get wrong so you can learn from your errors and perfect your practice.

The notes, the text, and the study guide are the most important study tools. The text also has a helpful companion site with glossary flashcards and quizzes. This site is linked from my website.

There is an exam for each of the four units. Each exam will have 30 multiple choice questions worth 2 points each and 2 problems worth 5 points each. At least five of the multiple-choice questions will be very similar to questions in the study guide. The problems in the study guide provide helpful practice for the problems.

There is also a comprehensive final. For each of the four units, there will be ten multiple choice questions and 2 problems.

Grades are based only on the points earned on exams and perhaps a few opportunities for bonus points.

There are four midterms worth 70 points each for a total of 280 points. The comprehensive final is worth 120 points. So, there are 400 points in the course.

Two improvement points will be earned for each percentage point by which the percentage on your final exceeds your percentage on the sum of the scores from your four midterms.

There are no opportunities for extra credit, instead focus on learning the material for the next exam.

The tentative grading scale is below. I may slightly decrease the percentage needed for each grade if doing so seems warranted.

A	92%	368
A-	90%	360
B+	88%	352
B	82%	328
B-	80%	320
C+	78%	312
C	72%	288
C-	70%	280
D	60%	240

If you are ill or have a valid excuse, you may take a make- up examination. Except in unusual circumstances, you must notify me at least 48 hours in advance that you need to take a make-up for a reason other than illness, and within 24 hours after or as soon as possible otherwise for illness or injury. Make-up exams are designed to be of similar difficulty to the regular exam, but will have different questions. Depending on the circumstances and how many students need to take a make-up, the make-up may be administered before or after the regular exam. Make-up exams are not offered for your convenience. They are designed for people who are unable to be present on the day of the exam.

Grade appeals
You have the right to make an appeal to me concerning the grading of your problems. However, all appeals must be in writing and explain what the grounds for your appeal are. “I need a higher grade because....” will never work as an appeal. Appeals should be made within three weeks from the time that the exam was taken.

Grades will be posted on e-learning. Let me know if you need help using it. I do not provide specifics of grades by phone or e-mail.

ADA policy
The Americans with Disabilities Act of 1990 (ADA) provides protection from discrimination for qualified individuals with disabilities. Students requesting instructional accommodations due to disabilities must arrange for such accommodation through the Office of Disability Services. The ODS is located in room 103 (upper level) Student Health Center. The phone number is (319) 273-2676.

Students who have special needs of any sort are encouraged to make me aware of them and to discuss any arrangements that may be necessary or helpful. For example, you should let me know if you need to sit near the front of the classroom for any reason. However, I often cannot do anything unless you have first contacted the Office of Disability Services and followed their procedures.

Students enrolled in a CBA course at the beginning of the second week of the spring semester will not be allowed to register again for the same course until the end of advance registration for the fall semester. Students who wish to re-register for a course may place their name on a waiting list. Registration accommodation will depend on course openings after the completion of fall advance registration. Summer session is excluded from this policy.

Academic dishonesty includes all dishonorable academic behavior. This includes, but is not limited to claiming the work of others as one’s own. Students should be clear on what, if any, cooperation with other students is permissible on an assignment before working together. University policy concerning cheating allows faculty to assign an F in the course and send a letter concerning the incident to be kept on file by the Vice President of Academic Affairs. Details of University Policy may be found online at uni.edu/policies/301.

I make concerted efforts to prevent and detect cheating. However, if you observe cheating please let me know as soon as possible. It is easier for me to take timely actions and impose penalties if you notify me immediately.

The consequences of dropping a course differ depending on when you drop. It is your responsibility to be aware of these deadlines and you should expect that I will not make exceptions to them. Academic deadlines are available at:
uni.edu/registrar/dates-to-observe.