Instructor's Manual j
Apostolos Serletis j
UniversityjofjCalgary
THE ECONOMICS OF MO
j j j
NEY, BANKING, AND FIN j j j
ANCIAL MARKETS j
Fifth Canadian Edition
j j
Frederic S. Mishkin j j
ColumbiajUniversity
Apostolos Serletis j
UniversityjofjCalgary
Toronto
Copyrightj©j2014jPearsonjCanadajInc.
Alljrightsjreserved.jThisjworkjisjprotectedjbyjCanadianjcopyrightjlawsjandjisjprovidedjsolelyjforjthejusejofjinstructorsji
njteachingjtheirjcoursesjandjassessingjstudentjlearning.jDisseminationjorjsalejofjanyjpartjofjthisjworkj(includingjonjthej
Internet)jwilljdestroyjthejintegrityjofjthejworkjandjisjnotjpermitted.jThejcopyrightjholderjgrantsjpermissionjtojinstructor
sjwhojhavejadoptedjThejEconomicsjofjMoney,jBanking,jandjFinancialjMarkets,jFifthjCanadianjEdition,jbyjMishkinjan
djSerletis,jtojpostjthisjmaterialjonlinejonlyjifjthejusejofjthejwebsitejisjrestrictedjbyjaccessjcodesjtojstudentsjinjthejinstruc
tor’sjclassjthatjisjusingjthejtextbookjandjprovidedjthejreproducedjmaterialjbearsjthisjcopyrightjnotice.
, Contents
Preface ........................................................................................................................................................... iii
PartjOne HowjtojUsejthejInstructor’sjManualjandjOtherjTextbookjAncillaries............................... 1
OrganizationjofjthejInstructor’sjManual ............................................................................................. 2
AlternativejCoursejOutlines ............................................................................................................... 3
OverviewsjofjthejTextbookjChaptersjandjTeachingjTips .................................................................... 7
AnswersjtojEnd-of-ChapterjProblems ................................................................................................ 7
PowerPointjPresentations ................................................................................................................... 7
TestjBank ........................................................................................................................................... 8
CoursejManagementjwithjMyEconLab .............................................................................................. 9
StudentsjandjMyEconLab................................................................................................................... 9
InstructorsjandjMyEconLab ............................................................................................................... 9
ThejMishkinjandjSerletisjCompanionjWebsite ................................................................................. 10
ReadingsjinjMoney,jBanking,jandjFinancialjMarketsj(OnlinejReader). ............................................ 10
ListjofjReadings .................................................................................................................. 11
StudyjGuide ..................................................................................................................................... 16
PartjTwo OverviewsjofjthejTextbookjChaptersjandjTeachingjTips ................................................. 17
PartjThree AnswersjtojEnd-of-ChapterjProblems ............................................................................... 53
PartjFour AnswersjtojMini-Cases ...................................................................................................... 167
PartjFive TransparencyjMasters:jChapterjOutlines ....................................................................... 181
Copyrightj©j2014jPearsonjCanadajInc.
, Preface
Fromjourjexperience,jthejdemandsjforjgoodjteachingjhavejincreasedjdramaticallyjinjrecentjyears.jTojaidjinstr
uctorsjinjthisjchallengingjenvironment,jwejhavejworkedjhardjtojmakejthisjInstructor’sjManualjajvaluablejtea
chingjaidjthatjshouldjhelpjsavejyoujtimejinjpreparingjyourjclass.
Ratherjthanjproceedingjchapterjbyjchapter,jthisjInstructor’sjManualjisjbrokenjintojfourjparts.jPartjOnejcontai
nsjpedagogicjsuggestionsjonjsuchjtopicsjasjhowjtojorganizejthejcoursejandjhowjtojusejthejancillaries.jPartjTw
ojoffersjchapterjoverviewsjandjteachingjtipsjthatjwejhavejfoundjusefuljinjthejclassroom.jPartjThreejcontainsjt
hejanswersjandjsolutionsjtojthejend-of-
chapterjproblemsjthatjarejnotjansweredjinjthejbackjofjthejtextbook.jPartjFourjprovidesjthejtransparencyjmaste
rsjforjthejchapterjoutlines.
Wejhavejfoundjthatjthisjorganizationaljstructurejmakesjitjeasyjtojusejthejinstructor’sjmanual,jespeciallyjwhen,jasj
here,jthejpagesjarejperforatedjsojtheyjcanjbejtornjoutjforjphotocopying,jeitherjforjclassjhandoutsjorjforjthejinstru
ctor’sjpersonaljuse.
WejbelievejthatjthisjInstructor’sjManualjwilljbejanjextremelyjvaluablejtooljinjteachingjthejmoneyjandjbankingjcours
e.jWejwouldjappreciatejanyjsuggestionsjorjcommentsjforjimprovingjthejmanual.jDirectjalljcorrespondencejtojmej
atjthejaddressjbelow:
ApostolosjSerletisjDepartmen
tjofjEconomicsjUniversityjofj
CalgaryjCalgary,jAlberta
T2Nj1N4
ApostolosjSerletisj
Calgary,jAlberta
Copyrightj©j2014jPearsonjCanadajInc.
,
Apostolos Serletis j
UniversityjofjCalgary
THE ECONOMICS OF MO
j j j
NEY, BANKING, AND FIN j j j
ANCIAL MARKETS j
Fifth Canadian Edition
j j
Frederic S. Mishkin j j
ColumbiajUniversity
Apostolos Serletis j
UniversityjofjCalgary
Toronto
Copyrightj©j2014jPearsonjCanadajInc.
Alljrightsjreserved.jThisjworkjisjprotectedjbyjCanadianjcopyrightjlawsjandjisjprovidedjsolelyjforjthejusejofjinstructorsji
njteachingjtheirjcoursesjandjassessingjstudentjlearning.jDisseminationjorjsalejofjanyjpartjofjthisjworkj(includingjonjthej
Internet)jwilljdestroyjthejintegrityjofjthejworkjandjisjnotjpermitted.jThejcopyrightjholderjgrantsjpermissionjtojinstructor
sjwhojhavejadoptedjThejEconomicsjofjMoney,jBanking,jandjFinancialjMarkets,jFifthjCanadianjEdition,jbyjMishkinjan
djSerletis,jtojpostjthisjmaterialjonlinejonlyjifjthejusejofjthejwebsitejisjrestrictedjbyjaccessjcodesjtojstudentsjinjthejinstruc
tor’sjclassjthatjisjusingjthejtextbookjandjprovidedjthejreproducedjmaterialjbearsjthisjcopyrightjnotice.
, Contents
Preface ........................................................................................................................................................... iii
PartjOne HowjtojUsejthejInstructor’sjManualjandjOtherjTextbookjAncillaries............................... 1
OrganizationjofjthejInstructor’sjManual ............................................................................................. 2
AlternativejCoursejOutlines ............................................................................................................... 3
OverviewsjofjthejTextbookjChaptersjandjTeachingjTips .................................................................... 7
AnswersjtojEnd-of-ChapterjProblems ................................................................................................ 7
PowerPointjPresentations ................................................................................................................... 7
TestjBank ........................................................................................................................................... 8
CoursejManagementjwithjMyEconLab .............................................................................................. 9
StudentsjandjMyEconLab................................................................................................................... 9
InstructorsjandjMyEconLab ............................................................................................................... 9
ThejMishkinjandjSerletisjCompanionjWebsite ................................................................................. 10
ReadingsjinjMoney,jBanking,jandjFinancialjMarketsj(OnlinejReader). ............................................ 10
ListjofjReadings .................................................................................................................. 11
StudyjGuide ..................................................................................................................................... 16
PartjTwo OverviewsjofjthejTextbookjChaptersjandjTeachingjTips ................................................. 17
PartjThree AnswersjtojEnd-of-ChapterjProblems ............................................................................... 53
PartjFour AnswersjtojMini-Cases ...................................................................................................... 167
PartjFive TransparencyjMasters:jChapterjOutlines ....................................................................... 181
Copyrightj©j2014jPearsonjCanadajInc.
, Preface
Fromjourjexperience,jthejdemandsjforjgoodjteachingjhavejincreasedjdramaticallyjinjrecentjyears.jTojaidjinstr
uctorsjinjthisjchallengingjenvironment,jwejhavejworkedjhardjtojmakejthisjInstructor’sjManualjajvaluablejtea
chingjaidjthatjshouldjhelpjsavejyoujtimejinjpreparingjyourjclass.
Ratherjthanjproceedingjchapterjbyjchapter,jthisjInstructor’sjManualjisjbrokenjintojfourjparts.jPartjOnejcontai
nsjpedagogicjsuggestionsjonjsuchjtopicsjasjhowjtojorganizejthejcoursejandjhowjtojusejthejancillaries.jPartjTw
ojoffersjchapterjoverviewsjandjteachingjtipsjthatjwejhavejfoundjusefuljinjthejclassroom.jPartjThreejcontainsjt
hejanswersjandjsolutionsjtojthejend-of-
chapterjproblemsjthatjarejnotjansweredjinjthejbackjofjthejtextbook.jPartjFourjprovidesjthejtransparencyjmaste
rsjforjthejchapterjoutlines.
Wejhavejfoundjthatjthisjorganizationaljstructurejmakesjitjeasyjtojusejthejinstructor’sjmanual,jespeciallyjwhen,jasj
here,jthejpagesjarejperforatedjsojtheyjcanjbejtornjoutjforjphotocopying,jeitherjforjclassjhandoutsjorjforjthejinstru
ctor’sjpersonaljuse.
WejbelievejthatjthisjInstructor’sjManualjwilljbejanjextremelyjvaluablejtooljinjteachingjthejmoneyjandjbankingjcours
e.jWejwouldjappreciatejanyjsuggestionsjorjcommentsjforjimprovingjthejmanual.jDirectjalljcorrespondencejtojmej
atjthejaddressjbelow:
ApostolosjSerletisjDepartmen
tjofjEconomicsjUniversityjofj
CalgaryjCalgary,jAlberta
T2Nj1N4
ApostolosjSerletisj
Calgary,jAlberta
Copyrightj©j2014jPearsonjCanadajInc.
,
