WELCOME TO EC311:MONEY, CREDIT, AND BANKING

Intro – EC311 Susanto

Agenda– Syllabus & Course Schedule

– Ec311.weebly.com• Everybody needs to sign up.

• In case you forget your sign on ID, use this one:

Username: money

Password: banking

– Chapter 1

– Student Info Sheet

– Assign Teams & Sign Up for Article Reviews

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Markets• Emerges in response to scarcity

• With market, people can exchange things they want less for things want more

• ‘Market’ doesn’t always refer to the physical venue for buying and selling

• It also refers to the process by which buyers and sellers determine what they are willing to buy and sell on what terms

• It is as much about information exchange as physical exchange of goods and services

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Markets1. Individuals act as if they are rational.

2. Individuals’ economic behavior is self-interested.

3. Individuals attempt to maximize outcomes (that is, to do as well as possible for themselves) as defined by their preferences given their resource constraints.

4. Individuals respond to incentives.

5. Firms exist to optimize its value and maximize profit.

6. Markets operate best when everyone pursues their own self-interest.

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Student Info Sheet

– Two sheets going around; sign up once only.

– Please indicate the name you preferred to be called.

– List your school/professional email address.

– Indicate whether you prefer to receive a text or a voicemail in case of emergency (ICE) or for last minute announcements.

– Assignment for this week: go to ec311.weebly.com, submit your contact information under the “Contact/Dropbox” tab.

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Team Assignment

– Pick a folded card from the box.

– Wait until everybody has his/hers before unfolding.

– Each of your card contains a clue, part of a list.

– Find 3 or 4 others that share similar clues from the same list. Each team should consist of 4 or 5 people.

– Come up to me, reveal which cards you have in your team and what you think the list means.

– The teams will sign up for article review dates based on the order in which they correctly identify the clues.

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CATEGORIES

- Economies using the “dollar” as their currency

- European countries suffering 2009-10 sovereign debt crises

- Major stock market indices in the U.S.

- Recent financial bubbles that crashed

- Investment banks in financial trouble during 2008 (liquidated or taken over by other firms)

- Financial firms taken over by the U.S. government in 2008

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