LINCOLN MEMORIAL UNIVERSITY

SCHOOL OF GRADUATE STUDIES

SYLLABUS

I. MBA 530/Economics 430 Financial Institutions and Markets, 3 semester hours, Summer 2003

II. Dr. John R. Sellers 865-689-5005 jsellers@lmunet.edu

III. University Mission and Purpose Statement

Lincoln Memorial University is a values-based learning community dedicated to providing educational experiences in the liberal arts and professional studies. The University strives to give students a foundation for a more productive life by upholding the principles of Abraham Lincoln’s life: a dedication to individual liberty, responsibility, and improvement; a respect for citizenship; a recognition of the intrinsic value of high moral and ethical standards; and a belief in a personal God.

The University’s curriculum and commitment to quality instruction at every level are based on the beliefs that graduates must be able to communicate clearly and effectively in an era of rapidly and continuously expanding communication technology, must have an appreciable depth of learning in a field of knowledge, must appreciate and understand the various ways by which we come to know ourselves and the world around us, and must be able to exercise informed judgments.

The University believes that one of the major cornerstones of meaningful existence is service to humanity. By making educational and research opportunities available to students where they live and through various recreational and cultural events open to the community, Lincoln Memorial University seeks to advance life in the Cumberland Gap area and throughout the region. Reaffirmed by the Board of Trustees May 3, 2002

Mission Statement: The Mission of the Masters of Business Administration program is to provide educational and research opportunities to working adults wanting to develop professionally by enhancing their business skills and credentials.

IV. Course Description

This course examines the role of financial institutions in wealth creation. Emphasis is primarily U.S. institutional structures including banking, primary and secondary capital markets, government institutions, and financial intermediaries. The determinants of interest rates and foreign exchange rates will be discussed. Prerequisite: Principles of Economics.

V. Course Objectives (Knowledges, Dispositions Students should gain a familiarity with the nature and function of the significant financial institutions. Some aspects of monetary and fiscal policy will be conveyed in relation to the operation of financial institutions.
Students should become aware of the relationships between financial institution (the financial sector) and the real (commodity production) sector of the economy. After successful completion of the class students should be proficient in identifying and analyzing institutional structures in the economy.

VI. Outline of Course Content 1. Institutional analysis of an evolving economy.

2. The nature of a money-production economy.

3. The Three Fictions: Commodity Fiction, Competitive Fiction, Competence Fiction.

4. Money and inflation.

5. Money, labor markets, aggregate demand.

6, Money in international markets.

7. Trade imbalances.

8. International liquidity.

IX. Text: Financial Markets, Money, and the Real World, Paul Davidson.

X. Required Readings: provided readings.

XI. Suggested Readings: listed separately.

XII. Requirements: Undergraduates: two examinations, practice quizzes, and a substantive research paper. Graduate students will also present case problems.

XIII. Evaluation/Assessment: examinations = 60%, research paper 30%, presentation of research findings = 10%.

XV. Plagiarism. Plagiarism is the presentation of someone else’s words or ideas as one’s own. (See APA Manual, pp. 349-350). One of the most common forms of plagiarism is the paraphrasing of several phrases, sentences or ideas in a paragraph with only one citation at the end of the paragraph resulting in confusion between the cited content and the researcher’s own words or ideas. Another common form is the practice of substituting words or phrases while retaining the original author’s form and structure.

Plagiarism in any form is one of the most egregious violations of professional ethics an author can commit. Submission of plagiarized material, even by accident or through ignorance, is a severe infraction of the professional ethical code and can result in expulsion from the program. To avoid plagiarism:

· Cite sources within the text for all phrases or ideas that are quoted or paraphrased.

· Cite sources within the text in the format delineated in the APA Manual, pp. 207-214.

Certification of Authorship. I certify that I am the author of this paper titled ____________________________________________________________

and that any assistance I received in its preparation is fully acknowledged and disclosed in the paper. I have also cited any sources from which I used data, ideas, or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. I understand that falsification of information will affect my status as a graduate student.

Student’s Signature Date

___________________________________ _____________________