University of Colorado Denver FNCE 3600-001: Financial Markets and Institutions Fall 2011 INSTRUCTOR: Barbara Ericsson OFFICE:

1380 Lawrence Street, Third Floor, Suite 390 OFFICE TELEPHONE: 303.556.6554 OFFICE FAX: 303.556.6619 E-MAIL: barbara.ericsson@ucdenver.edu (BEST METHOD OF CONTACT) OFFICE HOURS: By appointment (send e-mail to request an appointment) CLASS HOURS: CLASS LOCATION: 12:30 p.m.-1:45 p.m. Mondays and Wednesdays Plaza M 206

WEATHER CANCELLATIONS: When bad weather or emergency conditions require that the campus be closed, the decision will be made by the Auraria Higher Education Center executive officers on the advice of Auraria Campus Police and Security. The campus may be closed for the entire day, or just the evening. If the campus is closed for the entire day, the decision would normally be made by 5:30 am and the major radio stations and television stations will relay announcements to the public. See the Fall Semester Course Schedule for a listing of the radio and television stations that would carry announcements regarding campus closure. If the campus is to close for the evening only, the decision should be announced by 3:00 pm. Conditions in the immediate vicinity of the campus will be the criteria for closure. You may also call 303.556.2401 for a recorded message as to whether the campus is closed. REQUIRED CLASS MATERIALS: Text: Madura, Financial Markets and Institutions, 9th ed., South-Western Cengage Learning, 2009. ISBN-10:1-4390-3884-8

SUPPLEMENTARY CLASS MATERIALS (NOT MANDATORY): Newspaper: The Wall Street Journal

COURSE DESCRIPTION: This course focuses on the financial institutions used by business firms in financing their day-to-day and long-term operations. The course is divided into three parts. Part 1 deals with an overview of the financial environment, to include the role of financial markets and institutions, the importance of interest rates, the make up and determination of interest rates and the structure of interest rates. This section also explores the Federal Reserve System (what it is, how it operates to influence interest rates and its tools available to stimulate or retard the U.S. economy). Also covered in this section will be the theory and role of monetary policy used by the Federal Reserve System and a comparison with fiscal policy as used by the U.S. Government. Part 2 will study the Commercial Banking System and the role it plays in financing both short and long-term business operations and investment. Also subprime lending, the credit crisis and the Great Recession will be analyzed. Such topics as the mortgage market, commercial banking operations, bank regulation, international banking, thrifts and credit unions will be explored. Part 3 of the course will familiarize the student with other financial institutions that play a major role in financing business. Such topics as business and consumer finance companies, mutual funds, investment banking, international banking facilities, brokerages, pension funds and insurance companies will be covered.

COURSE OBJECTIVES: after completion of this course, the student should: 1. 2. 3. 4. 5. 6. Understand the general financial environment in which companies operate. Understand the role and functions of the Federal Reserve System, monetary theory, and monetary policy decisions and affects on the global economy. Understand the importance of interest rates on global business and how those interest rates are determined. Understand the importance of the commercial banking system, bank regulation and management. Gain an understanding of international banking and the role played by both U.S. and foreign banks in financing business. Understand the role and importance of non-bank enterprises that provide needed liquidity and financing to business.

COURSE REQUIREMENTS: The student is required to read the text chapters assigned, work all homework problems and questions assigned, and earn a passing grade on the overall average of tests given during the term. Specifically, those requirements are as follows:

1. Attendance: The instructor imposes a three-missed class rule. If the student misses more
than three classes during the semester, the students semester grade will be reduced by 2 percentage points of the total earned for the semester for each missed class beyond 3. Should a student miss a class, it is up to the student to contact another student and get any material, assignments, etc., that were either discussed or given that day. Do not contact the instructor to get missed material, assignments, etc. It is suggested that each student arrange a buddy system with another student in the class so that person may be contacted if a class is missed. Missing a class does not excuse the student from any assignments given out during the missed class.

2. Exams: There will be three exams corresponding to the three parts of the course as described
in the Course Description section of this syllabus above. The dates given in the Class Schedule section at the end of this syllabus are fixed. Should it be necessary for the student to miss an exam, he/she must schedule the makeup exam through both the instructor and the Faculty Services department in the College of Business offices (See Exam Make-Ups below for more precise information and requirements) to schedule a make-up exam). NOTE: Each exam is worth 100 points. There will be 300 exam points during the term.

3. Exam Make-Ups: If you miss an exam and wish to take a make-up you must take it either at
the convenience of the instructor or on the first Friday following the missed exam. You will not be given the same exam that you would have had if you had been in class. In order to take the make-up exam on the first Friday following the exam, you will need to contact both your professor and the Faculty Services Office in the Business School. All make-up exams are given on Friday mornings from 8:00 a.m. through Noon only at the Faculty Services Office of the Business School at 1250 Lawrence Street (2nd floor), across Speer Boulevard from the North Classroom. To take the make-up exam through the Faculty Services Office, you must get advance permission from both your instructor and the Faculty Services Office. You will need to contact Mr. Andrew Rotz at 303.315.8071. Ms. Rotz administers all Friday make-up exams. Otherwise, you will have to take the exam at the convenience of the instructor, usually during the office hours stated at the beginning of this syllabus or when and where the instructor is giving another exam.

4. Homework Assignments: Homework assignments will be given extensively over the

semester. Assignments are the responsibility of the student and are for learning purposes only. The assignments will not be collected and no points will be assigned. The homework will be covered in class if students have questions on it.

5. Class Participation: You are encouraged to participate in class discussions. As future

managers, leaders and/or Board members of various organizations, it is important that you can present, discuss and present ideas in a clear and concise manner. Class participation is for learning purposes only and no credit will be given toward the total point requirement of the course.

6. Estimated Time to Spend on the Course Outside of Class: The amount of time the student
spends studying for the course most likely will have the greatest impact on her/his grade for the term. Though individual study habits and skills vary and are unique to each student, a general rule of thumb is that it will take an average of 10 hours study time per week outside of class in order to maximize the learning process.

7. Prerequisites Required: See College Catalogue. All requirements stated will be strictly
enforced.

8. Knowledge Required: The student is expected to know and understand all material covered
in the prerequisites to this course. The student should check the college catalogue to determine whether he or she meets those prerequisite requirements. At any time during the semester, the College of Business may choose to dis-enroll any student who does not have the proper prerequisites. This is outside the control of the instructor. OTHER SIGNIFICANT NOTES:

1. Accommodations for Disability: Please notify the instructor and contact the Office of
Disability Services should you need assistance with this course, including special accommodations for exams. The instructor will extend every possible effort to meet your needs in this area.

2. Incomplete Grades: Incomplete grades are given only for emergency reasons that cause the
student not to be able to complete the course during the required term format. Those reasons must be documented to the instructor and the instructor will make the decision as to granting the incomplete grade. Additionally, an incomplete grade will only be given if the student is maintaining a C or better grade at the time the emergency arises that causes the student to not be able to complete the course at its regularly scheduled time.

3. Policy on Plagiarism and Cheating: UCD has a set policy for students suspected or accused
of plagiarism or cheating on exams or assignments. The sanctions can range from being assigned a zero score on an exam, and F for the semester, or through removal from the course with a failing grade. The instructor will enforce the policy strictly.

4. Cell Phones, Pagers, and Other Communication Devices: All cell phones, pagers, and
other electronic communication devices must be turned off upon entering the class unless previously cleared by your instructor. GRADING SCALE: Your grade will be based on the total points you achieve over the course, converted to a percentage of total points given. The following grading scale will be used: 93%+ = A 80 82% = B67 69% = D+ 90 92% = A77 79% = C+ 63 66% = D 87 89% = B+ 73 76% = C 60 62% = D83 86% = B 70 72% = CBelow 60% = F

CALCULATION OF GRADE: Your Grade will be based upon the following calculation method: Grade = Sum of Actual Exam Scores Total Number of Points Possible

The point breakdown is as follows: Exams: 100 points per exam = 300 points total The above method can be used at any time during the term to see your term average to that point in time. Be sure to keep all copies of any papers, quizzes, and exams that are passed back to you. DO NOT THROW ANY OF THESE ITEMS AWAY. Should there be a disagreement between what the instructor says you earned for the term and what you say you should have earned, you will be required to present documentation supporting your position or the grade will not be changed.

THE CLASS SCHEDULE IS ON THE FOLLOWING PAGE OF THIS SYLLABUS

Fall Term 2011

FNCE 3600-001 CLASS SCHEDULE: Date (8/22) (8/22) (8/24) (8/29) (8/31) (9/5) (9/7) (9/12 & 9/14) (9/19 & 9/21) (9/26) (9/28 &10/3) (10/5 &10/10) (10/12 & 10/17) (10/19 & 10/24) (10//26) (10/31 & 11/2) (11/7 &11/9) (11/14 & 11/16) (11/21 & 11/23) (11/28, 11/30 & 12/5) (12/7) (12/12) Topic Text Chapters

Introduction and Administration Overview Role of Financial Markets and Institutions 1 Role of Financial Markets and Institutions (contd) 1 Determination of Interest Rates 2 The Structure of Interest Rates 3 Labor Day-No Class The Structure of Interest Rates (contd) 3 Functions of the Federal Reserve System 4 Monetary Theory and Policy 5 Exam 1 Chaps 1 through 5 Review Exam and Mortgage Markets 9 Commercial Bank Operations 17 Bank Regulations 18 Thrift Operations 21 Exam 2 Chaps 9, 17, 18 & 21 Review Exam and Business and Consumer Finance Operations 22 Mutual Fund Operations 23 Securities Operations 24 Fall Break-No Classes Insurance Companies & Pension Funds 25 Exam 3 Chaps 22 through 25 Review Answers to Exam