Published Nov 16, 2022
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
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 |
Weeks | Lecture Topic/Chapter |
1 | Part-I: Introduction Chapter 1: Why Study Money, Banking, and Financial Markets? Chapter 2: An Overview of the Financial System |
2 | Chapter 3: What is Money? |
3 & 4 | Part-II: Financial Markets Chapter 4: The Meaning of Interest Rates Chapter 5: The Behaviour of Interest Rates |
5 | Part-III: Financial Institutions Chapter 8: An Economic Analysis of Financial Structure |
6 | Reading week: No classes |
7 | Chapter 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 |
9 | Chapter 15: The Money Supply Process |
10 & 11 | Chapter 16: Tools of Monetary Policy |
12 | Part-VII: Monetary Theory Chapter 20: Quantity Theory, Inflation, and the Demand for Money |
13 | Review for Final Exam |
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.
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:
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.
No assignment screening will be used in this course.
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.
Off campus, 24/7
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.
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For more information about the purpose of territorial acknowledgements, please see the CAUT Guide to Acknowledging Traditional Territory.
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.
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.
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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.