Apostolos Serletis M
University of Calgary
M M
THE ECONOMICS OF M M M M
ONEY, BANKING, AND FI M M M
NANCIAL MARKETS M
Fifth Canadian Edition
M M
Frederic S. Mishkin
M M
Columbia University
M
Apostolos Serletis M
University of Calgary
M M
Toronto
CopyrightM©M2014MPearsonMCanadaMInc.
AllMrightsMreserved.MThisMworkMisMprotectedMbyMCanadianMcopyrightMlawsMandMisMprovidedMsolelyMforMtheMuseMofM
instructorsMinMteachingMtheirMcoursesMandMassessingMstudentMlearning.MDisseminationMorMsaleMofManyMpartMofMthisM
workM(includingMonMtheMInternet)MwillMdestroyMtheMintegrityMofMtheMworkMandMisMnotMpermitted.MTheMcopyrightMho
lderMgrantsMpermissionMtoMinstructorsMwhoMhaveMadoptedMTheMEconomicsMofMMoney,MBanking,MandMFinancialMMar
kets,MFifthMCanadianMEdition,MbyMMishkinMandMSerletis,MtoMpostMthisMmaterialMonlineMonlyMifMtheMuseMofMtheMwebsi
teMisMrestrictedMbyMaccessMcodesMtoMstudentsMinMtheMinstructor’sMclassMthatMisMusingMtheMtextbookMandMprovidedMthe
MreproducedMmaterialMbearsMthisMcopyrightMnotice.
, Contents
Preface ........................................................................................................................................................... iii
PartMOne HowMtoMUseMtheMInstructor’sMManualMandMOtherMTextbookMAncillaries ....................... 1
OrganizationMofMtheMInstructor’sMManual.......................................................................................... 2
AlternativeMCourseMOutlines.............................................................................................................. 3
OverviewsMofMtheMTextbookMChaptersMandMTeachingMTips .............................................................. 7
AnswersMtoMEnd-of-ChapterMProblems .............................................................................................. 7
PowerPointMPresentations .................................................................................................................. 7
TestMBank .......................................................................................................................................... 8
CourseMManagementMwithMMyEconLab ............................................................................................ 9
StudentsMandMMyEconLab ................................................................................................................. 9
InstructorsMandMMyEconLab ............................................................................................................. 9
TheMMishkinMandMSerletisMCompanionMWebsite ............................................................................. 10
ReadingsMinMMoney,MBanking,MandMFinancialMMarketsM(OnlineMReader). ..................................... 10
ListMofMReadings................................................................................................................. 11
StudyMGuide .................................................................................................................................... 16
PartMTwo OverviewsMofMtheMTextbookMChaptersMandMTeachingMTips ........................................... 17
PartMThree AnswersMtoMEnd-of-ChapterMProblems............................................................................. 53
PartMFour AnswersMtoMMini-Cases .................................................................................................... 167
PartMFive TransparencyMMasters:MChapterMOutlines .................................................................... 181
CopyrightM©M2014MPearsonMCanadaMI
nc.
, Preface
FromMourMexperience,MtheMdemandsMforMgoodMteachingMhaveMincreasedMdramaticallyMinMrecentMyears.MToM
aidMinstructorsMinMthisMchallengingMenvironment,MweMhaveMworkedMhardMtoMmakeMthisMInstructor’sMManu
alMaMvaluableMteachingMaidMthatMshouldMhelpMsaveMyouMtimeMinMpreparingMyourMclass.
RatherMthanMproceedingMchapterMbyMchapter,MthisMInstructor’sMManualMisMbrokenMintoMfourMparts.MPartMO
neMcontainsMpedagogicMsuggestionsMonMsuchMtopicsMasMhowMtoMorganizeMtheMcourseMandMhowMtoMuseMtheM
ancillaries.MPartMTwoMoffersMchapterMoverviewsMandMteachingMtipsMthatMweMhaveMfoundMusefulMinMtheMcla
ssroom.MPartMThreeMcontainsMtheManswersMandMsolutionsMtoMtheMend-of-
chapterMproblemsMthatMareMnotMansweredMinMtheMbackMofMtheMtextbook.MPartMFourMprovidesMtheMtransparen
cyMmastersMforMtheMchapterMoutlines.
WeMhaveMfoundMthatMthisMorganizationalMstructureMmakesMitMeasyMtoMuseMtheMinstructor’sMmanual,MespeciallyM
when,MasMhere,MtheMpagesMareMperforatedMsoMtheyMcanMbeMtornMoutMforMphotocopying,MeitherMforMclassMhand
outsMorMforMtheMinstructor’sMpersonalMuse.
WeMbelieveMthatMthisMInstructor’sMManualMwillMbeManMextremelyMvaluableMtoolMinMteachingMtheMmoneyMandMban
kingMcourse.MWeMwouldMappreciateManyMsuggestionsMorMcommentsMforMimprovingMtheMmanual.MDirectMallMcorr
espondenceMtoMmeMatMtheMaddressMbelow:
ApostolosMSerletisMDepartme
ntMofMEconomicsMUniversityM
ofMCalgaryMCalgary,MAlberta
T2NM1N4
ApostolosMSerleti
sMCalgary,MAlbe
rta
CopyrightM©M2014MPearsonMCanadaMI
nc.
, CopyrightM©M2014MPearsonMCanadaMI
nc.