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The Economics of Money, Banking and Financial Markets Global Edition, 10 th Edition By Frederic S. Mishkin
Instructor’s Manual for
The Economics of Money, Banking, and Financial Markets Tenth Edition Global Edition
Frederic S. Mishkin Columbia University
Contents Preface....................................................................................................................................................
v
Part One
How to Use the Instructor’s Manual and Other Textbook Ancillaries ......................
1
Organization of the Instructor’s Manual ................................................................................................
3
Alternative Course Outlines ...................................................................................................................
5
Overviews of the Textbook Chapters and Teaching Tips ......................................................................
9
Answers to End-of-Chapter Problems ....................................................................................................
10
PowerPoint Presentation.........................................................................................................................
11
Test Bank................................................................................................................................................
12
Course Management with MyEconLab ..................................................................................................
13
The Mishkin Companion Web Site ........................................................................................................
14
Readings in Money, Banking, and Financial Markets (Online Reader).................................................
15
Study Guide ............................................................................................................................................
21
Part Two
Overviews of the Textbook Chapters and Teaching Tips ............................................
23
Part Three Answers to End-of-Chapter Problems...........................................................................
59
Part Four
163
Transparency Masters: Chapter Outlines ....................................................................
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PART ONE How to Use the Instructor’s Manual and Other Textbook Ancillaries
Copyright © 2013 Pearson Education. All rights reserved.
Organization of the Instructor’s Manual To help instructors cope with the increased demands for good teaching in recent years, The Economics of Money, Banking, and Financial Markets, Tenth Edition, includes the most comprehensive package of supplementary materials of any money, banking, and financial markets textbook. As part of these supplemental materials, I have designed the Instructor’s Manual to help save you time in preparing class materials, such as class outlines, solutions to homework problems, lecture notes, and overhead transparencies. This Instructor’s Manual is divided into four parts. Part One discusses how to use the Instructor’s Manual and the other textbook ancillaries to make your teaching of the money and banking course both more effective and less time-consuming. Part Two contains an overview of all the textbook chapters along with teaching tips that I have found effective. Part Three contains the answers to the end-of-chapter problems for use by the instructor to prepare solution sets for the problems he or she assigns to the students as problem sets. Part Four contains transparency masters of chapter outlines, which can be used either to make overhead transparencies for use in class or to make handouts for the students. To obtain any of the available ancillaries, adopters of the text just need to get in touch with their Pearson sales representative, or alternatively they can visit the Instructor’s Resource Center at www.pearsonglobaleditions.com/mishkin.
Copyright © 2013 Pearson Education. All rights reserved.
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Alternative Course Outlines There are many different ways to teach a course on money, banking, and financial markets. For this reason, the material in The Economics of Money, Banking, and Financial Markets, Tenth Edition, has been arranged with flexibility in mind, so that many teaching styles can be accommodated. The following sections suggest sample outlines for four main approaches to teaching money, banking, and financial markets, showing how the text can be adapted to each approach, as well as to quarter and semester teaching schedules. Note, however, that many variations on these outlines are possible.
◼ Outline for General Money and Banking Course Core Chapters Chapter No. 1. 2. 3. 4. 5. 11. 12. 13. 14. 16. 17. 23. 24.
Chapter Title Why Study Money, Banking, and Financial Markets? An Overview of the Financial System What Is Money? Understanding Interest Rates The Behavior of Interest Rates Banking and the Management of Financial Institutions Economic Analysis of Financial Regulation Banking Industry: Structure and Competition Central Banks: A Global Perspective Tools of Monetary Policy The Conduct of Monetary Policy: Strategy and Tactics Aggregate Demand and Supply Analysis Monetary Policy Theory
For a one-semester course, cover any six of the following optional chapters: Chapter No. 6. 7. 8. 9. 10. 15. 18. 19. 20. 21. 22. 25. 26.
Chapter Title The Risk and Term Structure of Interest Rates The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis An Economic Analysis of Financial Structure Financial Crises in Advanced Economies Financial Crises in Emerging Market Economies The Money Supply Process The Foreign Exchange Market The International Financial System Quantity Theory, Inflation, and the Demand for Money The IS Curve The Monetary Policy and Aggregate Demand Curves The Role of Expectations in Monetary Policy Transmission Mechanisms of Monetary Policy
Copyright © 2013 Pearson Education. All rights reserved.
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Mishkin • The Economics of Money, Banking, and Financial Markets, Tenth Edition
A one-quarter course would probably only include one or two of the optional chapters unless some of the chapters on central banking and the conduct of monetary policy (Chapters 14, 16, and 17) were deleted.
Copyright © 2013 Pearson Education. All rights reserved.
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Mishkin • The Economics of Money, Banking, and Financial Markets, Tenth Edition
◼ Outline for General Money and Banking Course with an International Emphasis Core Chapters Chapter No. 1. 2. 3. 4. 5. 11. 12. 13. 14. 16. 17. 18. 19. 23. 24.
Chapter Title Why Study Money, Banking, and Financial Markets? An Overview of the Financial System What Is Money? Understanding Interest Rates The Behavior of Interest Rates Banking and the Management of Financial Institutions Economic Analysis of Financial Regulation Banking Industry: Structure and Competition Central Banks: A Global Perspective Tools of Monetary Policy The Conduct of Monetary Policy: Strategy and Tactics The Foreign Exchange Market The International Financial System Aggregate Demand and Supply Analysis Monetary Policy Theory
For a one-semester course, cover any four of the following optional chapters: Chapter No. 6. 7. 8. 9. 10. 15. 20. 21. 22. 25. 26.
Chapter Title The Risk and Term Structure of Interest Rates The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis An Economic Analysis of Financial Structure Financial Crises in Advanced Economies Financial Crises in Emerging Market Economies The Money Supply Process Quantity Theory, Inflation, and the Demand for Money The IS Curve The Monetary Policy and Aggregate Demand Curves The Role of Expectations in Monetary Policy Transmission Mechanisms of Monetary Policy
A one-quarter course would probably not include any other chapters unless some of the chapters on central banking and the conduct of monetary policy (Chapters 14, 16, and 17) were deleted.
Copyright © 2013 Pearson Education. All rights reserved.
Part One: How to Use the Instructor’s Manual and Other Textbook Ancillaries
◼ Outline for Financial Markets and Institutions Course Core Chapters Chapter No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.
Chapter Title Why Study Money, Banking, and Financial Markets? An Overview of the Financial System What Is Money? Understanding Interest Rates The Behavior of Interest Rates The Risk and Term Structure of Interest Rates The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis An Economic Analysis of Financial Structure Financial Crises in Advanced Economies Financial Crises in Emerging Market Economies Banking and the Management of Financial Institutions Economic Analysis of Financial Regulation Banking Industry: Structure and Competition
For a one-semester course, cover any seven of the following optional chapters: Chapter No. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26.
Chapter Title Central Banks: A Global Perspective The Money Supply Process Tools of Monetary Policy The Conduct of Monetary Policy: Strategy and Tactics The Foreign Exchange Market The International Financial System Quantity Theory, Inflation, and the Demand for Money The IS Curve The Monetary Policy and Aggregate Demand Curves Aggregate Demand and Supply Analysis Monetary Policy Theory The Role of Expectations in Monetary Policy Transmission Mechanisms of Monetary Policy
A one-quarter course would probably only include one or two of the optional chapters.
Copyright © 2013 Pearson Education. All rights reserved.
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Mishkin • The Economics of Money, Banking, and Financial Markets, Tenth Edition
◼ Outline for Monetary Theory and Policy Course Core Chapters Chapter No. 1. 2. 3. 4. 5. 14. 15. 16. 17. 23. 24. 25. 26.
Chapter Title Why Study Money, Banking, and Financial Markets? An Overview of the Financial System What Is Money? Understanding Interest Rates The Behavior of Interest Rates Central Banks: A Global Perspective The Money Supply Process Tools of Monetary Policy The Conduct of Monetary Policy: Strategy and Tactics Aggregate Demand and Supply Analysis Monetary Policy Theory The Role of Expectations in Monetary Policy Transmission Mechanisms of Monetary Policy
For a one-semester course, cover any six of the following optional chapters: Chapter No. 6. 7. 8. 9. 10. 11. 12. 13. 18. 19. 20. 21. 22.
Chapter Title The Risk and Term Structure of Interest Rates The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis An Economic Analysis of Financial Structure Financial Crises in Advanced Economies Financial Crises in Emerging Market Economies Banking and the Management of Financial Institutions Economic Analysis of Financial Regulation Banking Industry: Structure and Competition The Foreign Exchange Market The International Financial System Quantity Theory, Inflation, and the Demand for Money The IS Curve The Monetary Policy and Aggregate Demand Curves
A one-quarter course would probably only include three or four of the optional chapters.
Copyright © 2013 Pearson Education. All rights reserved.