Welcome
We are pleased that you selected this independent study course to fulfill your unique educational needs. You are now a member of the Center's large and diverse student body—a student body that comes from all parts of the United States and many parts of the world.
Although the freedom to choose when and where to study is a privilege, it is also a responsibility that requires motivation and self-discipline. To succeed at independent study, you will need to develop a study plan by setting realistic goals and working toward them.
Please contact the office of MU Disability Services if you need to arrange accommodations for completing your coursework.
Course Introduction
This course aims to provide an explanation of relevant economic topics that affect our everyday life. Interest rates influence our consumption decisions, such as buying a car or a house. Likewise, the value of the U.S. dollar with respect to other countries’ currencies determines how expensive it is for Americans to travel abroad or to buy imported goods. This course analyzes the determination of equilibrium interest and exchange rates and investigates how these rates are affected by a number of factors. The performance of financial markets in an economy also directly affects our well being. How easily corporations can get funds to undertake investment projects has an impact on the number of jobs available. This course describes the current structure of financial markets in the United States and proposes an economic analysis of its regulations, emphasizing the effects of asymmetric information problems. The way the Federal Reserve (Fed) reaches its goals and how it interacts with the banking system probably has a lot to do with the performance of the U.S. economy in the last century. The rather unique structure of the Fed and its tools are also analyzed in this course. Finally, upon completion of this course, students will understand the effects that a change in the Fed’s monetary policy might have on equilibrium interest rates, employment, inflation, and exchanges rates.
Catalog Description: This course explores operation of the U.S. financial and economic system. It covers interest rates, banking regulation, the money supply process and conduct of the Federal Reserve, inflation and the macroeconomy, exchange rates and the international financial system, rational expectations, and efficient markets.
Time Limit for Course Completion: 9 months. All assessments must be submitted and graded within this time.
Course Keycode: 2281
Textbooks/Materials
Required Textbooks and Other Materials
- Textbook: The Economics of Money, Banking, and Financial Markets. Frederic S. Mishkin, 8th Edition. Pearson, 2007 (Boston).
- Study guide: The Economics of Money, Banking, and Financial Markets. Edward Gamber and David Hakes, 8th Edition. Pearson, 2007 (Boston).
- Basic calculator
External Websites
Throughout this course, you will find links to useful websites. These links will include guided instruction on how each link can be used—whether as a supplemental resource, a place to go for practice, or for reference on course assignments.
Broken or incorrect links. We check for broken links regularly, but let our support staff know if you find one and we will get it fixed right away.
How to Study for This Course
- Submit your first progress evaluation early. For university courses, a minimum of six weeks must elapse between the date you submit your first progress evaluation and the date you take your final exam.
- Know how you will be assessed. Look at the grading scale and read all the information on any assignments, projects, and exams.
- Review the exam information page before taking any exam. This page includes descriptions of the exam(s), if any, required for this course. Keep in mind that, unless otherwise stated on the exam information page, CDIS exams are supervised and must be taken at an approved site. Approved sites will be listed when you are prompted to request an exam during the course.
- Be able to do all lesson objectives. Learning is active, and courses at any level are often designed with objectives or actions that can be done as evidence that you have learned something. One advantage of independent study is that learning objectives are clearly written for each lesson.
- Review the hints for independent study. This is an independent study course and is likely different from other courses you have taken. Begin by reviewing these hints, which will help you adjust your computing and study habits so you will have the best chance of earning the grade you want.
- Download an "Independent Study Planning Sheet" (pdf) to track your progress. The number of lessons, progress evaluations, and exams will directly affect how long it takes to complete any given CDIS course. As you work through this course, check your schedule often to make sure you're on track. Keep in mind that all progress evaluations and exams must be submitted and graded within the course time limit.
About the Course Developer
Martin Pereyra was born in Montevideo, Uruguay in 1976. He studied economics at the University of the Republic, Uruguay. In 2001, he transferred to Missouri Valley College where he graduated with his BS degree in 2002. He received his PhD degree from the University of Missouri in 2007.
Martin has taught money and banking courses since 2003. Currently, he teaches Principles of Macroeconomics, Theory of the Firm, and Economic Development for the Department of Economics at the University of Missouri. His research interests include macroeconomics and the economics of developing countries.
Technical Specifications
To complete this course, you will need access to a computer with a modern Web browser (see recommended browsers below), a working Internet connection (56k dial-up or broadband), word processing software, and disk space to save your work.
Recommended Web Browsers
- Windows: Internet Explorer (version 7 or 8) or Firefox 3.5.
- Mac OS: Safari 4 or Firefox 3.5.
Your browser should support graphics at a screen resolution of 800 × 600 or higher, run JavaScript (the browsers above do by default), and accept cookies, which are used solely to verify your login. This course has been designed to be accessible to all students, including those using assistive technologies.
Portions of this course may require Adobe Flash Player.
Word Processing Software
You will be required to upload documents in Word 97–2003 (.doc) or Rich Text (.rtf) format. These documents can be created in Microsoft Word or another office suite that saves in the .doc or .rtf format, such as the open-source OpenOffice online. The Center does not provide or support any word processing software; however, OpenOffice is available free-of-charge at the above link.
or 
You may need to view PDF documents as part of this course.
Virus Protection
It is suggested that you have virus protection software on your system. Virus protection software will help to protect your system (and ours) against computer viruses. Students can visit the anti-virus software page from the Division of IT for more information.
Students with Disabilities
If you anticipate barriers related to the format or requirements of this course, please let the student services staff at Mizzou Online know as soon as possible.
If disability related accommodations are necessary (for example, a note taker, extended time on exams, captioning), please register with the Office of Disability Services, S5 Memorial Union, 573-882-4696. For other resources for students with disabilities, visit the Disability Resources site from the MU Chancellor.
To receive testing accommodations for this course, you must provide a memo of accommodation, issued from the MU Office of Disability Services, to Mizzou Online Student Services prior to requesting exams.
Begin Coursework
Starting with the first lesson, study the lesson's objectives and commentary. Then complete the reading assignment and any recommended study activities. Take notes and make sure you understand all the material presented in the readings. Follow this procedure for each lesson. Complete the online quizzes and exams in the order in which they are presented in this course.