To see revisions of this document or browse other course outlines, please Log In

Money and Banking 1 Winter 2023
ECON 206

Published Nov 16, 2022

Class Schedule

Please log in to view this content.

Instructor & TA (Teaching Assistant) Information

Please log in to view this content.

Course Description

ECON 206:

This course offers an overview of the functioning of the financial system both in Canada and abroad. It includes discussions of money and inflation, financial assets, and financial institutions and intermediaries.

Prereq: ECON 101 or ECON 100/COMM 103; ECON 102. Antireq: ECON 304

Learning Outcomes

By the end of this course students should be able to:
Understand money, its forms and functions
Describe the role of money and financial markets in the economy
Understand the structure of the financial markets
Explain the financial market instruments
Explain the types and functions of financial intermediaries
Explain the role of financial regulatory authorities
Explain the functions of the Bank of Canada

Tentative Course Schedule

WeeksLecture Topic/Chapter

Part-I: Introduction

Chapter 1: Why Study Money, Banking, and Financial Markets?

Chapter 2: An Overview of the Financial System

2Chapter 3: What is Money?
3 & 4

Part-II: Financial Markets

Chapter 4: The Meaning of Interest Rates

Chapter 5: The Behaviour of Interest Rates

Part-III: Financial Institutions

Chapter 8: An Economic Analysis of Financial Structure

6Reading week: No classes
7Chapter 9: Economic Analysis of Financial Regulation
8

Part-V: Central Banking and The Conduct of Monetary Policy

Chapter 14: Central Banks and the Bank of Canada

Chapter 15: The Money Supply Process
10 & 11Chapter 16: Tools of Monetary Policy
12

Part-VII: Monetary Theory

Chapter 20: Quantity Theory, Inflation, and the Demand for Money

13Review for Final Exam

 

Texts / Materials

Title / Name Notes / Comments Required
Mishkin, Frederic S. and Apostolos Serletis (2020). The Economics of Money, Banking, and Financial Markets, 7th Canadian Edition. Pearson. eTextbook Yes

Additional Resources:

Additional resources (e.g. lecture slides, practice problem sets) are posted on LEARN. Students are responsible for downloading and saving course material on LEARN before the access to their courses is shut off.

Student Assessment

Component Value
Midterm Exam I - February 16, 2023 (In Class) 25%
Midterm Exam II - March 16, 2023 (In Class) 25%
Final Exam (Cumulative) - TBA 50%
Total 100%

Learning in this course results primarily from lectures, in-class discussions, home readings, and practice problem sets. Students learning and progress in this course will be evaluated on individual basis.

Please Note:

  1. For some chapters selected portions will be covered as a part of the course material.
  2. If a student misses a lecture for any reason, it is student’s responsibility to obtain class lecture notes and other relevant material.
  3. There will be no make-up midterms.
  4. If a midterm exam is missed, given proper documentation, the weight will be transferred to the final exam.
  5.  All exams, midterms and final, are individual and closed-book.
  6.  Both the in-class midterms and the final exam will consist of a mix of short answer questions, analytical problems, numerical calculations, mathematical derivations, true-false, multiple choice, and fill-in-the-blank questions, and will draw on material covered in the lectures.
  7. It is mandatory that students bring their UW student ID card to the midterms and the final exam.
  8. Your grades on midterms will be posted on LEARN. Please immediately report to the instructor any discrepancy between the posted and actual grades.
  9. Only the Registrar’s Office can issue final grades. Hence, marks for the final exam will not be posted on LEARN.
  10.  Missing the final exam is a very serious matter which automatically results in a grade of zero for the final exam and possibly a failing grade for the course. Please carefully read the Economics Department policy on deferred final exams for instructions.
  11. No deferred final exam will be provided for students who missed all the exams (including the final exam) in this course. For instructions on the deferred final exam policy please refer to the Deferred Final Exam Policy, located at https://uwaterloo.ca/economics/current-undergraduates/policies-and-resources.
  12. You are encouraged to contact course instructor or course TA for any questions on the course material and outlines, evaluation scheme, and the final exam.

 

Communication and Feedback:

I will be using LEARN to post relevant course material. Students are encouraged to contact with instructor or TA to seek help or to discuss course related matters. Instructor’s office hours are listed on page 1. If scheduled office hours conflict with your schedule, you can request an appointment with me via email (m4karimz@uwaterloo.ca). Please ensure that your email has subject line starting with “ECON 206” this will minimize the risk of your email being overlooked or perceived as spam.

 

Guidelines and Expectations:

For getting the most out of this course grade wise and in terms of learning, active participation on your behalf is essential. In order to make this journey successful, each student’s cooperation, diligence, sincerity and above all a great deal of interest and involvement in learning the course material are important. This will ensure that we receive the maximum value added from the course.

I will deliver my lectures using slides. The slides will be distributed through LEARN. I will also use the blackboard/whiteboard to cover additional material. The slides are not lecture notes. They are mainly providing outlines of what will be discussed in class. I will set the lecturing pace based on the assumption that you have copies of the slides with you in class.

Students are assumed to have read the material ahead of the lectures. Please refer to the Tentative Course Schedule on page 2 for reading schedule. Students should NOT expect me to talk about every single textbook page. The lectures will focus on the most important and challenging parts of the material. More basic material will be left for the students to study on their own. I will refer to this more basic material in the lectures, hence the need to read ahead to understand the lectures.

Assignment Screening

No assignment screening will be used in this course.

Administrative Policy

Mental Health Support

All of us need a support system. The faculty and staff in Arts encourage students to seek out mental health support if they are needed.

On Campus

Due to COVID-19 and campus closures, services are available only online or by phone.

  • Counselling Services:  counselling.services@uwaterloo.ca / 519-888-4567 ext. 32655
  • MATES:  one-to-one peer support program offered by the Waterloo Undergraduate Student Association (WUSA) and Counselling Services

Off campus, 24/7

  • Good2Talk:  Free confidential help line for post-secondary students. Phone: 1-866-925-5454
  • Grand River Hospital: Emergency care for mental health crisis. Phone: 519-749-4300 ext. 6880
  • Here 24/7: Mental Health and Crisis Service Team. Phone: 1-844-437-3247
  • OK2BME: set of support services for lesbian, gay, bisexual, transgender or questioning teens in Waterloo.  Phone: 519-884-0000 extension 213

Full details can be found online on the Faculty of Arts website

Download UWaterloo and regional mental health resources (PDF)

Download the WatSafe app to your phone to quickly access mental health support information.

Territorial Acknowledgement

We acknowledge that we are living and working on the traditional territory of the Attawandaron (also known as Neutral), Anishinaabe and Haudenosaunee peoples. The University of Waterloo is situated on the Haldimand Tract, the land promised to the Six Nations that includes ten kilometres on each side of the Grand River.

For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to Acknowledging Traditional Territory.

Cross-listed courses

Please note that a cross-listed course will count in all respective averages no matter under which subject code it has been taken. For example, a PHIL/PSCI cross-list will count in a Philosophy major average, even if the course was taken under the Political Science subject code.

Economics Department Deferred Final Exam Policy

All deferred Final Exam requests for economics courses are administered by the Economics Undergraduate Office. Please consult the Deferred Exam Policy at 

https://uwaterloo.ca/economics/undergraduate/resources-and-policies/deferred-final-exam-policy.

University Policy

Academic integrity: In order to maintain a culture of academic integrity, members of the University of Waterloo community are expected to promote honesty, trust, fairness, respect and responsibility. [Check the Office of Academic Integrity for more information.]

Grievance: A student who believes that a decision affecting some aspect of their university life has been unfair or unreasonable may have grounds for initiating a grievance. Read Policy 70, Student Petitions and Grievances, Section 4. When in doubt, please be certain to contact the department’s administrative assistant who will provide further assistance.

Discipline: A student is expected to know what constitutes academic integrity to avoid committing an academic offence, and to take responsibility for their actions. [Check the Office of Academic Integrity for more information.] A student who is unsure whether an action constitutes an offence, or who needs help in learning how to avoid offences (e.g., plagiarism, cheating) or about “rules” for group work/collaboration should seek guidance from the course instructor, academic advisor, or the undergraduate associate dean. For information on categories of offences and types of penalties, students should refer to Policy 71, Student Discipline. For typical penalties, check Guidelines for the Assessment of Penalties.

Appeals: A decision made or penalty imposed under Policy 70, Student Petitions and Grievances (other than a petition) or Policy 71, Student Discipline may be appealed if there is a ground. A student who believes they have a ground for an appeal should refer to Policy 72, Student Appeals.

Note for students with disabilities: AccessAbility Services, located in Needles Hall, Room 1401, collaborates with all academic departments to arrange appropriate accommodations for students with disabilities without compromising the academic integrity of the curriculum. If you require academic accommodations to lessen the impact of your disability, please register with AccessAbility Services at the beginning of each academic term.

Turnitin.com: Text matching software (Turnitin®) may be used to screen assignments in this course. Turnitin® is used to verify that all materials and sources in assignments are documented. Students' submissions are stored on a U.S. server, therefore students must be given an alternative (e.g., scaffolded assignment or annotated bibliography), if they are concerned about their privacy and/or security. Students will be given due notice, in the first week of the term and/or at the time assignment details are provided, about arrangements and alternatives for the use of Turnitin in this course.

It is the responsibility of the student to notify the instructor if they, in the first week of term or at the time assignment details are provided, wish to submit alternate assignment.