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ERIC Number: EJ963639
Record Type: Journal
Publication Date: 2012
Pages: 15
Abstractor: As Provided
ISBN: N/A
ISSN: ISSN-0022-0485
A Classroom Experiment on Banking
Kassis, Mary Mathewes; Hazlett, Denise; Ygosse Battisti, Jolanda E.
Journal of Economic Education, v43 n2 p200-214 2012
This classroom experiment uses double oral auction credit markets to illustrate the role of banks as financial intermediaries. The experiment demonstrates how risk affects market interest rates in the presence of asymmetric information. It provides fodder for a discussion of the moral-hazard problem of deposit insurance and its impact on depositor and bank behavior. The basic experiment can be extended to include the effect of political risk on credit markets. The experiment can be used in principles, intermediate macroeconomics, or money and banking courses with 8-75 students. It takes 50-75 minutes to run, depending on class size, and requires no computers. (Contains 3 tables and 8 notes.)
Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site: http://www.tandf.co.uk/journals
Publication Type: Journal Articles; Reports - Research
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A