Teaching Assistant(s):



ECONOMICS 2I03 Financial Economics Spring 2020(Online)Instructor: Rizwan TahirEmail: tahirr1@mcmaster.caOffice Hours: This is an online course and therefore there will be no physical office hours. Students are encouraged to contact instructor/TA by email. Students are encouraged to log in once a day to the Avenue to Learn, preferably every evening.Virtual office hours through Zoom: Thursdays from 3 pm to 4 pmTeaching Assistant(s):Tan, Yangdan Susie Email: tany9@mcmaster.caCourse Description:This course focuses on the financial sector. Topics include the role of capital markets in facilitating investment and growth, bond markets, & stock markets. Focuses on the economic analysis of financial structure and financial regulation and financial crises. It analyses behavior of interest rates and discusses the role of central banking and the tools of monetary policy. Prerequisite(s): ECON 1B03 and ECON 1BB3 (or ARTSSCI 2E03)Not open to students with credit or registration in COMMERCE 2FA3 Required Textbook (RT): The Economics of Money, Banking and Financial Markets 7th Canadian Edition, by Fredric S. Mishkin, 2020; Plus MyEconlab an online tool. Package comes with e-text. You can buy online and register for MyEconLab. Please see the detail instructions posted on the avenue.Additional Text (AT): Corporate Finance, 4th Canadian Edition, by Jonathan Berk, Peter Demarzo & David Stangeland, 2015, Pearson [Note: You do not need to buy this additional text. Will cover only three chapters and pdf files will be posted on the avenue.] Learning Outcomes:At the end of the course, students should be able to ? Understand the primary functions of the Financial System ? Understand the structure of the Financial Markets Understand time value of money Understand how to value bonds & stocks ? Explain the Financial Market Instruments ? Understand time value of money and Valuation of Financial assets ? Explain the Functions of Financial Intermediaries ? Explain the types of Financial Intermediaries ? Explain Regulation of Financial Markets ? Explain the role of financial regulatory authorities ? Explain the role of central banking Course Website Avenue to Learn (avenue.mcmaster.ca) is McMaster’s learning management system and is where all the course material will be posted. Course material is posted under the ‘Content Tab’ on Avenue and includes: Course Outline PowerPoint Notes Office hours of the instructor and teaching assistantGradesAnnouncements Evaluation ComponentWeightAssignments 15% Quizzes10% Term Test-1 [available on May 21st]20% Term Test-2 [available on June 4th]20% iClicker (Optional)5%Final Exam30% or 35% without iclickerAssignments:Available through MyEconLab. It is an online learning and assessment tool. It provides ample opportunity to practice concepts, diagrams, algebraic problems consistent with the textbook readings. There is a total of seven (7) weekly assignments. Each assignment will be based on weekly contents and will be made available from 830 am on Monday to 1130 pm on Thursday. Quizzes Quizzes will be administered through Avenue to Learn. All Quizzes will consist on Multiple-Choice questions. Each Quiz will be based on weekly contents and will be made available from 830 am on Friday to 1130 pm on Sunday. You will have 0ne hour within this availability to submit each weekly Quiz. Term TestsBoth term tests would be available on the avenue. Each test is of 60 minutes duration and would include 40 multiple choice questions. The material for each test is outlined belowiClickersWe will make use of iclickers (or “clickers”) – an electronic response system that allows you to register an answer to questions asked in a live online session. Your best 80% clicker sessions will count for 5% of the course grade. Each clicker session is graded out of 5 points. Three of the ten are awarded for answering at least 70% of the questions asked, even if all of these are answered incorrectly. This is the “participation” portion of the clicker grade. One mark is awarded for each question answered correctly, to a maximum of seven. This is the “performance” portion of the clicker grade. You do not need a clicker remote as you will be able to participate using a smart device. Please follow the link, if you do not have an account: or to login and register for the course. Please use your "mac ID" and NOT your "student ID" to register. You will find the course as "Econ 2I03-S20"Live sessions will run on Tuesdays/Thursdays from 230 pm to 3 pmFinal Exam The final exam will be online through avenue. You will have 70 minutes and 50 questions. The exam is cumulative.Missing Quizzes and/or testsThere will be no makeup quizzes or makeup testsIf you miss a test or quiz you will get a grade of zero unless you complete and submit a McMaster Student Absence Form (MSAF) which can be found at approved MASF, weight of the missed quiz or test will be shifted towards final exam. NOTE: MSAF is not accepted for online quizzes, Mylab Econ assignments and class participation through iclickersUniversity PoliciesAcademic Integrity StatementYou are expected to exhibit honesty and use ethical behavior in all aspects of the learning process. Academic credentials you earn are rooted in principles of honesty and academic integrity. Academic dishonesty is to knowingly act or fail to act in a way that results or could result in unearned academic credit or advantage. This behavior can result in serious consequences, e.g. the grade of zero on an assignment, loss of credit with a notation on the transcript (notation reads: “Grade of F assigned for academic dishonesty”), and/or suspension or expulsion from the university.It is your responsibility to understand what constitutes academic dishonesty. For information on the various types of academic dishonesty please refer to the Academic Integrity Policy. The following illustrates only three forms of academic dishonesty:Plagiarism, e.g. the submission of work that is not one’s own or for which credit has been obtained. Improper collaboration in group work.Copying or using unauthorized aids in tests and examinations.Academic Accommodation of Students with DisabilitiesStudents who require academic accommodation must contact Student Accessibility Services (SAS) to make arrangements. Academic accommodations must be arranged before classes or academic work begins, and for each term of study. Student Accessibility Services can be contacted by phone 905-525-9140 ext. 28652 or e-mail sas@mcmaster.ca. For further information, consult McMaster University’s Policy for Academic Accommodation of Students with Disabilities. Academic Accommodation for Religious, Indigenous and Spiritual ObservancesStudents who require academic accommodation due to an Observance must submit a RISO form to their Faculty office, electronically or in person, normally within ten working days from the beginning of each term in which they are anticipating a need for Accommodation. For further information, consult McMaster University’s Policy on Academic Accommodation for Religious, Indigenous and Spiritual Observances. Faculty of Social Sciences E-mail Communication PolicyEffective September 1, 2010, it is the policy of the Faculty of Social Sciences that all e-mail communication sent from students to instructors (including TAs), and from students to staff, must originate from the student’s own McMaster University e-mail account. This policy protects confidentiality and confirms the identity of the student. It is the student’s responsibility to ensure that communication is sent to the university from a McMaster account. If an instructor becomes aware that a communication has come from an alternate address, the instructor may not reply at his or her discretion.Course ModificationThe instructor and university reserve the right to modify elements of the course during the term. The university may change the dates and deadlines for any or all courses in extreme circumstances. If either type of modification becomes necessary, reasonable notice and communication with the students will be given with explanation and the opportunity to comment on changes. It is the responsibility of the student to check his/her McMaster email and course websites weekly during the term and to note any changes. Detailed Course ScheduleModuleDatesContents Assessment1May 4th to May 10th An Overview of the Financial systemChapter 2 (RT)What is MoneyChapter 3 (RT)The Time Value of MoneyChapter 4 (AT)Assignment-1 (available from May 4th to May 7th)Quiz-1 (available from May 8th to May 10th)2May 11th to May 17th Basic ValuationValuing BondsChapter 6 (AT)Understanding Interest ratesThe behaviour of interest rateChapter 5 (RT)Assignment-2 (available from May 11th to May 14th)Quiz-2 (available from May 15th to May 17th)3May 18th to May 24th The Risk and Term structure of interest rateChapter 6 (RT)TEST # 1 [available on May 21st and covers chapters 2,3,5(RT) & 4, 6 (AT)Assignment-3 (available from May 18th to May 21st)Quiz-3 (available from May 22nd to May 24th)4May 25th to May 31st Valuing StocksChapter 7 (AT)An Economic Analysis of Financial StructureChapter 8 (RT)Assignment-4 (available from May 25th to May 28th)Quiz-4 (available from May 29th to May 31st)5June 1st to June 7th Economic Analysis of Financial RegulationChapter 9 (RT)TEST # 2 [available on June 4th and covers chapters 7(AT) & 5,6 & 8 (RT)Assignment-5 (available from June 1st to June 4th)Quiz-5 (available from June 5th to June 7th)6June 8th to June 14th Financial Crises Chapter 11 (RT)Central Banking Chapter 14 (RT)Assignment-6 (available from June 8th to June 11th)Quiz-6 (available from June 12th to June 14th)7June 15th to June 18thThe conduct of Monetary PolicyChapters 15, 16 (RT)Final Exam [available on June 18th and is cumulative]Assignment-7 (available from June 12th to June 15th)Quiz-7 (available from June 15th to June 17th)Note: The instructor reserves the right to modify elements of the course and will notify students accordingly (in class and post any changes to Avenue to Learn). ................
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