Money and Banking (FIN 301/ECON 210)


FIN 301/ECON 210-01 and 10

Fall 2016

Roosevelt University



Instructor:  Donald W. Swanton

Contact Information:  office Wabash 1112Z, telephone (312) 281-3278, fax (312) 281-3290, email, web site   My web site has information about office hours etc.  Google “Swanton Roosevelt” to get there easily.

Time and place:

.        Section 01       Monday afternoon      2:00-4:30     WB 1214

.        Section 10       Monday evening         6:00-8:30      WB 1017

Office hours in WB1112Z:

.         Mondays               1:00-2:00 and 5:00-6:00

.         Tues-Thurs           10:30-11:00 and 1:00-2:00

I will keep the two sections synchronized so any student may attend either the afternoon class or the evening class without missing anything.  This also makes it possible for me to remember what I have covered in each class.

Text:  The Economics of Money, Banking, and Financial Markets 11th ed. By Fredrick Mishkin, (M), Addison and Wesley ISBN 10: 0133836797.  The loose leaf version is fine, and you will not need online access, so a used book is also good.  I will be handing out my Notes on Money and Banking (S) in class as the semester progresses.

Prerequisites:  ECON 101-102, MATH 116 or 121, ENG 101-102.  The mathematics prerequisite is very important.  Students who attempt this class before finishing it generally drop the class within a few weeks.

Goals:  This course introduces students to the functions of banks and other financial intermediaries and the economic theories of the roles of money and of the central bank in the economy.  It is both theoretical and historical.  We will talk about financial crises, and since our understanding of the last crisis is rapidly evolving, I reserve the right to add new material at any time.  We will discuss ethical issues for each crisis.

Student Learning Objectives:  business discipline principles.

Grades:  Grades will be determined by the arithmetic average of the best three out of the four quiz grades.  Quizzes will receive the numerical version of letter grades, A = 4.00, A/B = 3.50, B = 3.00 B/C = 2.50, etc.  It takes and average of at least 3.51 for an A, 2.51 for a B, etc.

Credit:  3 sh

Attendance:  I do not usually take attendance, but I will take it several times.

Plagiarism:  Please review Roosevelt’s policy on plagiarism.

Religious Holidays:  Roosevelt’s policy is to accommodate students who will be celebrating religious holidays.  Rosh Hashanna is Oct. 2-4, and Eid al Adha starts Monday evening Sep. 12.  Talk to me in the first couple of weeks, and we will work something out.



Notes:  My Notes on Money and Banking currently consist of:

.     S1    Functions of the Financial System

.     S2    Money and the Economy as a Whole

.     S3    Interest Rates and Bond Prices

.     S4    The Supply of Money

.     S5    The Demand for Money

.     S6    The Theory of Interest

.     S7    The Golden Savings and Loan Case: an Economic and Ethical Analysis

.     S8    Inflation and its Effects.



As of November 8, 2016

Date                Chapters                    Topics

Aug 29            S1, S2, M1-3               Introduction, the economy as a whole, money and banks

Sep 5               /////                            Labor Day no class

Sep 12             S1, S2, S3                    The economy, interest rates and bond prices

Sep 19             M8                               Lost

Sep 26*          S4, M13, M14             Catch-up

Oct 3              S4, M13, M14              Catch-up

Oct 10             S4, S5                          Financial structure, adverse selection and moral hazard

Oct 17             S4, M13, 14                The supply of money

Oct 24.           S4                                 Deposit creation

October 31 is the last date to withdraw from the class and receive a grade of W.

Oct 31*           S5, S6                           The demand for money

Nov 7               S6                                More

Nov 14             S6, S8                          More, the  theory of  interest

Nov 21             S6, S8                          The Fed and interest rates

Nov 28*          M9, S7                         The Great Depression, the S&L crisis of the 1980’s

Dec 5               M9, S7                        The Sub-prime Meltdown of 2008

Dec 12*           ////                               Last Quiz

An asterisk * denotes a quiz that week including exam week.  This schedule is tentative and subject to drastic rearrangement depending on the state of the economy and the actions of the Federal Reserve.  Consult my web page for the current version.



Roosevelt University Policies.


The university’s three overall learning goals for both undergraduate and graduate students are:

  • Goal:  Effective communication.
  • Goal:  Knowledge of disciplined-focused content.
  • Goal: Awareness of social justice and engagement in civic life.


*** Academic dishonesty: The university’s policies on issues such as plagiarism, recycling, cheating and other forms of academic dishonesty can be found in the student handbook, which is available as a link here: .  Additional guidelines for avoiding plagiarism are available here:

*** Disability:  Roosevelt University complies fully with the Americans with Disabilities Act. Details about ADA and Roosevelt’s policies and practices are found in the following link:   If you have a condition or disability that requires reasonable accommodation, please alert your instructor or the Academic Success Center as soon as possible, certainly before any assignment or classroom activity that requires accommodation.  The Academic Success Center is located in AUD 128 in Chicago, and the phone number is 312-341-3818. In Schaumburg, the office is in room 125, and the phone number is 847-619-7978. Email Nancy Litke at or Danielle Smith at .

*** Withdrawal date: The final date for an official withdrawal from this class (meaning a “W” would appear on your transcript) is Tuesday, Oct. 27. After that, if you want to withdraw, you’ll need to petition the registrar. Petitions are granted only for non-academic reasons after the deadline. If you receive financial aid, it’s best to check with your counselor to assure that aid isn’t affected by withdrawing from a class. The complete withdrawal policy is here:

*** Religious holidays: Please let your instructor know as soon as possible if you will miss class because you are observing a religious holiday. Roosevelt University policy requires written notification to me within the first two weeks of the term. Any work you miss because of a religious holiday can be made up. You can see the full policy here:

*** Student Code of Conduct: Students enrolled in the university are expected to conduct themselves in a manner compatible with the university’s function as an educational institution.