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BARRY UNIVERSITY
SCHOOL of BUSINESS
FIN-316-01 Financial Markets and Institutions
Fall 2018
Instructor: Dr. Nichole Castater
Phone: 305-899-3522
E-Mail: ncastater@mail.barry.edu
Office: Andreas 210
Office Hours: 8:00-11:00am Tuesdays and Thursdays and by appointment – please send email to
confirm you are coming
Course Description: An examination of the nature and functions of money, financial institutions
within the larger economic system, and central banks. Course emphasizes the role of financial
instruments, financial markets and financial institutions as well as the functioning of the Federal
Reserve System by examining monetary policy and its roots in macroeconomic and monetary
theory. Special focus is on structure and evolution of the banking industry, depository institutions,
and regulation of financial intermediaries within the context of the global financial system and
international monetary system.
Course Prerequisites: ECO 201, 202. Co-requisite FIN 319.
Required Text/Readings/Material: Financial Markets and Institutions – Financial Markets and
Institutions, 8E, Mishkin and Eakins, Pearson
ISBN-10: 013342362X,
ISBN-13: 9780133879872
Mission Relevance
Barry University Mission:
The Barry University Mission Statement and Core Commitments full text may be found on the last
page.
Core Commitment
Knowledge and
Truth
Relationship to the Course
This course supports the student achieving success as business
practitioner by providing them with an understanding of the workings of
the financial sector and its importance to business as well as giving the
students analytical tools, techniques, and skills that support valueenhancing business decisions.
Inclusive
Community
n/a
Social Justice
Ethical perspectives will be enhanced through analysis of regulatory
regimes and issues of corruption.
Collaborative
Service
n/a
School of Business Mission:
The School of Business Mission Statement full text may be found on the last page.
Dimensions
Relationship to the Course
Ethical perspectives will be enhanced through analysis of regulatory
agencies.
Ethics
Social
Responsibility
n/a
Global Orientation
Entrepreneurial
Attitude
The student’s global perspective will be further enhanced through
discussion of international financial issues.
Entrepreneurial issues will be addressed in examining the innovations
that are taking place in the financial sector.
BSBA Program Learning Goals and Supporting Objectives Embedded in FIN-316
Embedded
Goal
Description
(“E”= Embedded)
1.
1.a.
1.b.
1.c.
1.d.
2.
2.a.
2.b.
3.
3.a.
3.b.
4.
4.a.
4.b.
Our graduates will demonstrate sufficient comprehension and
competence of major business knowledge and skills.
Our students will evaluate business problems and formulate
plausible solutions consistent with theory and practice.
Our students will apply appropriate data analysis procedures to
analyze business problems/issues.
Our students will produce professional quality business
documents.
Our students will deliver professional quality business
presentations.
Our graduates will demonstrate sufficient comprehension of
individual, business and community ethics and social responsibility.
Our students will determine the stakeholders in the decision
making process and identify their social responsibility.
Our students will apply ethical and social cost-benefit principles
to ethical issues.
Our graduates will demonstrate an awareness of entrepreneurship and
innovation and their importance.
Our students will identify and analyze traits, behaviors and
impact of entrepreneurs and innovators.
Our students will evaluate the advantages and disadvantages of
the different forms of ownership for a new enterprise.
Our graduates will demonstrate sufficient comprehension of global
business.
Our students will evaluate the effects of increasing globalization
of trade, investment and markets on business.
Our students will identify and provide examples of important
socio-economic and political factors driving globalization.
E
E
Finance Major Learning Outcomes Embedded in FIN-316
Goal
1
Description
Embedded
(“E”=Embedded)
Integrate the financial concepts of the time value of money, risk, and
return into an accurate corporate valuation.
E
2
Synthesize investment policy with complete investment analysis in
order to design and build appropriate investment portfolios.
Course Learning Objectives
Learning Objective
Assessment Method
Demonstrate the function and
purpose of money and the
financial system
Tests
Demonstrate an
understanding of interest
rates, financial instruments,
and financial markets
Tests, Financial Journal, Final Exam
Demonstrate an
understanding of financial
institutions
Tests
Demonstrate an
understanding of Central
Banks, Monetary Policy
Financial Stability
Tests
Related to
Program
Goal(s)
1a, b
Finance
Major
Goal 1
1a, b
Finance
Major
Goal 1
1a, b
Finance
Major
Goal 1
1a, b
Finance
Major
Goal 1
Course Activities to Meet Objectives
Tests
There will be 7 tests throughout the semester and the final. The final may have comprehensive
elements on it. The test will have multiple choice questions, problems and short answers, and
possibly a take home essay. Tests will contain material from the text as well as the lectures. ***In
general THERE ARE NO MAKEUPS!*** With a university-approved excuse I will allow the
next exam to count twice, If there are extraordinary circumstances, a makeup consisting of all
multiple choice questions will be administered during finals week at the instructor’s appointed
time. You may drop one of the tests.
The last day to drop with the grade of W is October 3rd, 2018.
The final exam is to be given on exam week on Thursday, December 13th, 2018 from 11:00am
– 12:20PM.
Financial Journal
Each student will keep a financial journal keeping track of interest rates and various financial
instruments. This list will include: Federal Funds Rate, Prime Rate, Discount Rate, M1, M2, 13
week Treasury Bill, 10 year Treasury bond price, as well as the USD/EUR, JPY/USD, USD/GBP,
and CAD/USD exchange rates. Journal will be collected and graded four times throughout the
semester. The first three times are the class meetings following an exam. The final time is the last
day of class. New data must be recorded weekly and information explaining changes must be noted
at least once during each grading period. I will distribute a template for the collection of this data
on Canvas and review how to compile the data in class.
Final Exam
The Final Exam will be based on the Financial Journal information you collect throughout the
semester. As the final exam draws closer, I will provide more information.
Grading
Tests
Financial Journal
Final Exam
TBD
22 points/ 2 points per week
TBD
TOTAL
TBD
Letter Grade
A
Percentage
90 and up
B+
B
C+
C
D
F
87.0-89.9
80-86.9
77.0-79.9
70-76.9
60-69.9
Below 60
Please note that my grading scale is different than that on Canvas when it comes to letter
grades. Please defer to the grading scale in this syllabus.
Attendance Policy
The School of Business policy states that “Students are expected to attend all classes”. Since we
cover technical material in class, attendance is especially important. In addition, students are
expected to be in class when it begins and stay for the entire period. I will take attendance every
class. Students are responsible for all lecture notes as well as the material in the text, and both will
be on the exams.
Students with Disability
If you have special learning needs, please inform the instructor and contact Barry University’s Office
of Disability Services at (305) 899-3488 to request reasonable accommodations. This office grants
accommodations on case-by-case basis. The Office of Disability Services is located in Landon
Student Union 102.
Cheating and Plagiarism
Cheating and plagiarism are defined in the latest University Catalog:
“Cheating is defined as the attempt, successful or not, to give or obtain aid and/or information by
illicit means in meeting any academic requirements, including examinations. Cheating includes
falsifying reports and documents. Plagiarism is defined as the use, without proper acknowledgement,
of the ideas, phrases, sentences, or larger units of discourse from another writer or speaker.
Plagiarism includes the unauthorized copying of software and the violation of copyright laws.”
Cheating and plagiarism will not be tolerated; these types of actions are in direct opposition to the
Barry University mission, which stresses knowledge and truth. Students are required to take personal
responsibility for their actions and conduct themselves with integrity. Violations discredit the
academic experience and will be met with proportionate consequences. This course will apply the
policy strictly.
Academic Dishonesty Penalties: A student found responsible for any act of academic dishonesty
may be subject to the following maximum penalties:
(1) First Offense: A 0 will be earned for the assignment in question AND there will be no makeup opportunity for this assignment. The offense will be reported to the Dean of the School, and this
information may become part of the student’s permanent academic record.
(2)Second Offense: An F will be earned for the course. The offense will be recorded in the
student’s permanent academic record and reported to the Dean of the School, who may determine
an additional course of action
Grade Review Process
As per University policy, for a disputed test or paper grade, a student must first meet with his/her
instructor. Students must follow the policy articulated in the Student Handbook and Catalogue.
Classroom Conduct
Students are expected to participate in class discussions and contribute their own perspectives and/or
personal experiences in international business. This enhances class discussion and collaborative
learning opportunities for all members of the class.
• Students are expected to be self-directed, responsible, and accountable and to treat everyone in
the classroom with professional respect.
Assignments and Grading
All assignments must be submitted at the time specified on the assigned due date. Late assignments
will be docked one full letter grade for each day they are submitted late (this means 10 points on a
100 point grading system). If you must miss a class when an assignment is due, you must send your
assignment with a classmate or send to me via email or through Blackboard prior to the beginning
of class. This rule will be applied without exception. All students are responsible for all classroom
material regardless of attendance.
•
Poor grammar and unclear writing styles will negatively impact written assignment grades.
Electronics
Laptops and other electronic devices should be turned off during class time unless you are taking
notes or we are working on a project requiring computer usage. All mobile phones should be turned
off or muted during class time.
Syllabus
The syllabus will be available to you during the first week of class and will be posted on Canvas.
However, I may modify the syllabus if necessary to meet course objectives. If any modifications are
made, I will notify you in class, through an email message, and via “Announcements” in Canvas. I
will also post the revised syllabus under Course Documents in Canvas.
Use of technology and etiquette:
The use of technology will be absolutely vital in this course. Assignments, grades, and
discussions will be held in the Canvas classroom as well as through e-mail. If the student has
any issues accessing e-mail or the Canvas classroom, the student should contact DoIT at its
website http://www.barry.edu/doit/ or by phone 305-899-3600 to resolve these matters.
It is of upmost importance that student maintain proper etiquette to further enhance
learning on this medium. When communicating through these mediums to the instructor and
other students, topics only relating to the course will be tolerated on Canvas, and the highest
level of respect, civility, and proper language is demanded at all times. If any issues of improper
conduct are discovered, the student will be referred to the proper authorities at Barry University
for possible disciplinary action.
I understand you can receive emergency cell phone calls. Please keep your cell phone on
silent and I will not tolerate texting during class.
Instructions for sending e-mails
1. Please send e-mails to me at ncastater@barry.edu.
2. Copy yourself on all e-mail correspondence. (This is done by placing your e-mail
address in the CC: slot when you send an e-mail. This way you have a copy of when you
sent the e-mail. This is very important for proving you sent an e-mail, or turned in an
assignment.
3. Save all e-mails from this class in an online or offline file.
4. In the Subject line of the e-mail, please place your last name and the course prefix and
number. I have many of you in two classes, and this will facilitate clearer
communication.
Example:
To:ncastater@barry.edu
CC:janedoe@gmail.com
Subject: FIN316 – Doe – Syllabus
Course Calendar
Date/Session
Week 1
Week 2
Week 3-4
Week 5-6
Week 7-8
Week 9-10
Week 11-12
Week 13-14
Topic
Introduction
Chapter 1: Why Study Financial Markets and Financial
Institutions?
Chapter 2: Function and Structure of Financial
Markets; Function and Structure of Financial
Intermediaries
Chapter 3: Measuring Interest Rates; Real v. Nominal
Interest Rates; Interest Rates v. Returns
Chapter 4: Why to Interest Rates Change? Asset
Demand, Supply and Demand in Bond Markets,
Equilibrium of Interest Rates
Chapter 5: Risk and Term Structure of Interest Rates
Chapter 6: Efficient Market Hypothesis (EMH) and
Behavioral Finance
Chapter 7: Why do Financial Institutions Exist?
Transaction Costs, Asymmetric Information, Moral
Hazard
Chapter 9: Central Banking
Chapter 10 Monetary Policy
Chapter 11: Money Markets
Chapter 12: Bond Markets
Chapter 13: Stock Markets
Chapter 14: Mortgage Markets
Chapter 18: Financial Regulation
Chapter 19: Banking Industry
Chapter 20: Mutual Funds
Chapter 21: Insurance
Chapter 22: Investment Banking
Chapter 23: Managing Risk
Chapter 24: Hedging with Financial Derivatives
Chapter 26: Savings Associations
Chapter 27: Finance Companies
Assignment
Financial Journal – Week 1
Test 1 covers Chapters 1-6 and is on Canvas
Financial Journal – Week 2
Financial Journal – Week 3
Financial Journal – Week 4
Financial Journal – Week 5
Test 2 covers Chapters 7, 9-13 and is on Canvas
Financial Journal – Week 6
Financial Journal – Week 7
Financial Journal – Week 8
Financial Journal – Week 9
Test 3 covers Chapters 14, 18-22 and is on Canvas
Financial Journal – Week 10
Final Financial Journal Project
FINAL EXAM COVERS CHAPTERS 23-27 AND IS ON THURSDAY, DECEMBER 13TH, 2018 11:00AM –
12:20AM IN AND 108. ATTENDANCE IS MANDATORY, MAKE SURE YOU ARRANGE YOUR TRAVEL
PLANS AROUND THIS FACT.
Personal Issues
If you have any situation that may affect your performance in class, please let me know as soon as
possible. I will do my very best to work with you through it. There is not something you can say
that I have not personally experienced at this point in my life. If you need any type of assistance, I
will work with the university to make sure you are okay.
Illness during the Semester:
If you have the flu, DO NOT COME TO CLASS ILL!!! I cannot receive a flu shot due to a rare
condition I contracted after receiving my first flu shot. I take various measures to prevent illness,
but they do not always work!!! If you are ill, isolate yourself, do not share it!
Cell Phones and Laptop Computers:
During Tests and Quizzes:
The use of cell phone calculators, IPad calculators, or any electronic device capable of taking a
picture, communicating with the internet, or any other electronic device is strictly prohibited anytime
a test is in your possession. When taking a test or examining a test you have already taken, cell
phones must be placed in your backpack and the backpack placed against the wall in the front of the
room. If you do not have a backpack, you may leave your cell phone on the table in the front of the
room. Taking pictures of a test is cause for immediate administrative withdrawal.
During Class:
The use of cell phones for any reason is prohibited in MBA 622 during class. They must be placed
in your backpacks, pocket, purse, or wherever, but not on your desk. The use of laptop computers
for reading the sports pages, playing on Facebook or any activity not related to the coursework is
prohibited. Those activities are distracting both to the lecturer, and your classmates. No one has the
right to disrupt the class. Thus, the practice of those activities will cause the student to become a
candidate for an administrative withdrawal.
Barry University Mission
Barry University is a Catholic institution of higher education founded in 1940 by the Adrian
Dominican Sisters. Grounded in the liberal arts tradition, Barry University is a scholarly
community committed to the highest academic standards in undergraduate, graduate and
professional education.
In the Catholic intellectual tradition, integration of study, reflection and action inform the
intellectual life. Faithful to this tradition, a Barry education and university experience foster
individual and communal transformation where learning leads to knowledge and truth, reflection
leads to informed action, and a commitment to social justice leads to collaborative service.
Barry University provides opportunities for affirming our Catholic identity, Dominican heritage,
and collegiate traditions. Catholic beliefs and values are enriched by ecumenical and interfaith
dialog.
Through worship and ritual, we celebrate our religious identity while remaining a University
community where all are welcome.
Core Commitments Catholic intellectual and religious traditions guide us in the fulfillment of our
mission. The mission and values of the Adrian Dominican Sisters serve as the inspiration for our
core commitments.
Knowledge and Truth Barry promotes and supports the intellectual life, emphasizing life-long
learning, growth and development. The University pursues scholarly and critical analysis of
fundamental questions of the human experience. In the pursuit of truth, the University advances
development of solutions that promote the common good and a more humane and just society.
Inclusive Community Barry is a global, inclusive community characterized by interdependence,
dignity and equality, compassion and respect for self and others. Embracing a global world view,
the University nurtures and values cultural, social and intellectual diversity, and welcomes faculty,
staff, and students of all faith traditions.
Social Justice Barry expects all members of our community to accept social responsibility to foster
peace and nonviolence, to strive for equality, to recognize the sacredness of Earth, and to engage
in meaningful efforts toward social change. The University promotes social justice through
teaching, research and service.
Collaborative Service Barry is committed to serving local and global communities through
collaborative and mutually productive partnerships. The University accepts responsibility to
engage with communities to pursue systemic, self-sustaining solutions to human, social, economic
and environmental problems.
School of Business Mission
Our mission is to deliver high quality education that will enable our students to succeed as
responsible business practitioners and leaders.
We strive to develop in our students a strong sense of ethics, social responsibility, and an
entrepreneurial attitude within a global perspective.
We are committed to excellent teaching, engaged learning, and collaboration with our community.
Our intellectual contributions emphasize practical applications, with our faculty also engaging in
theoretical and empirical research and instructional development.
We operate in a highly cosmopolitan, multicultural setting, with students from around the world,
as part of a Catholic, international university, and we function as a collaborative, inclusive
community of caring faculty, staff, and students in the tradition of the Adrian Dominicans.
Page 10 of 10
Financial Journal
NAME: Abdulraouf Alismail
Interest rates in percent
Economic Indicators
Inflation (annual change in CPI)
Unemployment
Interest Rates
Federal Funds Rate
Non-financial Commercial Paper - 1 month
Financial Commercial Paper - 1 month
LIBOR 1-month
Prime rate
Discount Rate
13-week Treasury Bill (3-month)
1-year Treasury Bill
2-year Treasury Bond
5-year Treasury Bond
10-year Treasury Bond
Money Supply
annual change in M1 Money Supply
annual change in M2 Money Supply
Financial Stress
Financial Stress Index
Currency Prices
EUR/USD
USD/JPY
GBP/USD
USD/CAD
USD/HKD
USD/CNY
AUD/USD
Website
http://www.bls.gov/cpi/
http://www.bls.gov/cps/
27-Aug
2.9
3.9
7-Sep
2.9
3.9
14-Sep
2.9
3.9
21-Sep
2.9
3.9
http://federalreserve.gov/releases/h15/current/
1.92
1.92
1.92
1.92
http://federalreserve.gov/releases/h15/current/
1.94
2
2.01
2.09
http://federalreserve.gov/releases/h15/current/
1.93
2.03
1.97
2.04
https://fred.stlouisfed.org/series/USD1MTD156N?utm_source=series_page&utm_medium=related_content&utm_term=rela
2.06938 2.11375
2.131 2.16469
http://federalreserve.gov/releases/h15/current/
5
5
5
5
http://federalreserve.gov/releases/h15/current/
2.5
2.5
2.5
2.5
http://federalreserve.gov/releases/h15/current/
2.04
2.09
2.12
2.12
http://federalreserve.gov/releases/h15/current/
2.35
2.41
2.48
2.49
http://federalreserve.gov/releases/h15/current/
2.61
2.64
2.74
2.81
http://federalreserve.gov/releases/h15/current/
2.72
2.76
2.87
2.96
http://federalreserve.gov/releases/h15/current/
2.82
2.88
2.97
3.08
http://federalreserve.gov/releases/h6/current/default.htm
http://federalreserve.gov/releases/h6/current/default.htm
https://fred.stlouisfed.org/series/STLFSI
https://www.google.com/finance
https://www.google.com/finance
https://www.google.com/finance
https://www.google.com/finance
https://www.google.com/finance
https://www.google.com/finance
https://www.google.com/finance
3.9
3.9
3.9
3.9
3.9
4
3.9
4
-1.239
-1.308
-1.267
-1.295
1.17
111.1
1.29
1.3
7.85
6.82
0.73
1.17
111.01
1.29
1.32
7.85
6.84
0.71
1.16
112.02
1.31
1.3
7.85
6.87
0.72
1.17
112.56
1.31
1.29
7.81
6.86
0.73
28-Sep
5-Oct
12-Oct
19-Oct
26-Oct
2-Nov
9-Nov
16-Nov
2.7
3.9
2.7
3.7
2.7
3.7
2.5
3.7
2.3
3.7
2.3
3.7
2.3
3.7
2.5
3.7
2.18
2.15
2.19
2.21581
5.25
2.75
2.14
2.49
2.83
2.96
3.06
2.18
2.22
2.18
2.26056
5.25
2.75
2.18
2.53
2.87
3.05
3.19
2.18
2.21
2.18
2.27669
5.25
2.75
2.22
2.57
2.85
3
3.14
2.19
2.24
2.2
2.27975
5.25
2.75
2.27
2.57
2.89
3.04
3.19
2.2
2.28
2.21
2.28188
5.25
2.75
2.29
2.55
2.84
2.94
3.1
2.2
2.24
2.27
2.29669
5.25
2.75
2.29
2.59
2.87
2.98
3.15
2.2
2.28
2.29
2.31788
5.25
2.75
2.3
2.65
2.98
3.09
3.24
2.2
2.31
2.77
2.31438
5.25
2.75
2.32
2.61
2.86
2.94
3.11
3.9
4
3.9
4
4.7
4
4.6
3.9
4.6
3.9
4.6
3.9
4.6
3.9
4.1
3.7
-1.304
-1.295
-1.294
-1.108
-1.107
-1.125
-0.926
-0.926
1.16
113.69
1.3
1.29
7.83
6.87
0.72
1.15
113.71
1.31
1.3
7.84
6.87
0.71
1.16
112.19
1.32
1.3
7.83
6.92
0.71
1.15
112.5
1.31
1.31
7.84
6.93
0.71
1.14
111.82
1.28
1.31
7.84
6.94
0.71
1.14
113.18
1.3
1.31
7.83
6.89
0.72
1.13
113.83
1.3
1.32
7.83
6.96
0.72
1.14
112.84
1.28
1.31
7.83
6.94
0.73
8/27/2014 Rates
0.03
0.09
0.44
1.58
2.39
8/27/2014 R
3
2.5
2
1.5
1
0.5
3/1/2020
7/1/2019
11/1/2018
3/1/2018
7/1/2017
11/1/2016
3/1/2016
0
7/1/2015
11/27/2014
8/27/2015
8/27/2016
8/27/2019
8/27/2024
11/1/2014
Date
3/1/2024
7/1/2023
11/1/2022
3/1/2022
7/1/2021
11/1/2020
3/1/2020
8/27/2014 Rates
8/27/2014 Rates
FIN 316: Financial Markets and Institutions – Final Project – Part I
1. GRAPH the findings from your journals since the beginning of the semester. (25 points)
2. In five pages or less, EXPLAIN what has happened with each one of your journal
observations since the beginning of the semester. Use the Internet to research the
markets, securities and conditions to explain this. This section is very important! (75
points).
3. Include a REFERENCE page, and reference and place in quotation marks any thoughts
or facts not your own. If you fail to include a reference page and reference, 15 points will
be subtracted from your grade, and a point (-1) will be subtracted for every failure to
reference.
4. Bring in the project BY HAND PRINTED to class on Thursday, November 30th, 2017.
5. Part II will be an in-class exercise on November 30th. With your journal entries, you
will then be expected to answer in-class questions. These in-class questions will
include calculating spot and forward rates. In addition to looking up answers in your
journal.
Project Section
1. Graph findings
a. Include all collection dates for this
semester
b. Present in a clear, legible and
correct manner – the dates and the
data points.
2. Explanation of Index or Currency
a. Include a general explanation of
the
movements of the index – up,
down, flat (1.2 points),
and when these movements
occurred. (1.2 points)
b. Using reputable sources from the
Internet, explain the movements
using economic, political, and
social factors in the country that
would explain the movements.
Lack of referencing as well as spelling,
grammatical and style mistakes
Reference page missing
Formatting issues, despite the submission
form
Late
Points
15
10
25
50
-1 per incident
-15 points
-1 per occurrence
-11 points per hour