Test Bank MISHKIN: THE ECONOMICS OF MONEY, BANKING & FINANCIAL MARKETS 9TH EDITION BY Kathy Kelly & Richard G. Stahl

TB_599810_Mishkin_TP.qxd:Layoutn1n 6/4/09n 9:45nAMn Pagen1




Test Bank n




to accompany
n




Kathy Kelly n Richard G. Stahl n n



University of Texas, Arlington
n n n Louisiana State University
n n




PearsonnAddison-Wesley

Bostonn SannFranciscon NewnYork
Londonn Toronton Sydneyn TokyonnnSingaporennnMadridnMexi
conCityn Munichn Parisn CapenTownn HongnKongn Montreal

,TB_599810_Mishkin_TP.qxd:Layoutn1n 6/4/09n 9:45nAMn Pagen2




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orldnWidenWeb)nwillndestroynthenintegritynofnthenworknandnisnnotnpermit-
ted.nThen workn andnmaterialsnfromn itnshouldnnevern ben madenavailablent
onstudentsnexceptnbyninstructorsnusingnthenaccompanyingntextninntheirn
classes.nAllnrecipientsnofnthisnworknarenexpected ntonabidenbynthese
restrictionsn andn ton honorn then intendedn pedagogicaln purposesn andn then needsn ofno
therninstructorsnwhonrelynonnthesenmaterials.




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Thisnworkn isn protectednbyn Unitedn Statesncopyrightn lawsn andnisn providedn solelynforn then usenofn instructorsni
nnteachingntheirncoursesnandnassessingnstudentnlearning.n Disseminationnornsalenofnanyn partnofnthisn workn(i
ncludingnonnthenWorldnWidenWeb)nwillndestroynthenintegritynofnthenworknandnisnnotnpermitted.nThenwork
andnmaterialsnfromnitnshouldnnevernbenmadenavailablentonstudentsnexceptnbyninstructorsnusingnthenaccompa-
nnyingn textn inn theirn classes.nAlln recipientsn ofn thisn workn aren expectedn ton abiden byn thesen restrictionsn andn tonhon

ornthen intendedn pedagogicaln purposesnandn thenneedsn ofn otherninstructorsn whonrelyn onn thesenmaterials.

PearsonnAddison-Wesley™nisnantrademarknofnPearsonnEducation,nInc.




1n 2n 3n 4n 5n 6n OPMn 12n 11n 10n 09

ISBN-13:n978-0-321-59981-0
n ISBN-10:n0-321-59981-0

,Contents
Chaptern1 WhynStudynMoney,nBanking,nandnFinancialnMarkets? ............................................... 1
Chaptern2 AnnOverviewnofnthenFinancialnSystem ........................................................................ 20
Chaptern3 WhatnIsnMoney? ............................................................................................................. 43
Chaptern4 UnderstandingnInterestnRates....................................................................................... 60
Chaptern5 ThenBehaviornofnInterestnRates ..................................................................................... 78
Chaptern6 ThenRisknandnTermnStructurenofnInterestnRates ....................................................... 111
Chaptern7 ThenStocknMarket,nthenTheorynofnRationalnExpectations,
andnthenEfficientnMarketnHypothesis ........................................................................ 133
Chaptern8 AnnEconomicnAnalysisnofnFinancialnStructure ......................................................... 150
Chaptern9 FinancialnCrisesnandnthenSubprimenMeltdown ........................................................ 169
Chaptern10 BankingnandnthenManagementnofnFinancialnInstitutions ........................................ 181
Chaptern11 EconomicnAnalysisnofnFinancialnRegulation ............................................................ 208
Chaptern12 BankingnIndustry:nStructurenandnCompetition ........................................................ 229
Chaptern13 CentralnBanksnandnthenFederalnReservenSystem ...................................................... 253
Chaptern14 ThenMoneynSupplynProcess ........................................................................................ 274
Chaptern15 ToolsnfornMonetarynPolicy .......................................................................................... 319
Chaptern16 ThenConductnofnMonetarynPolicy:nStrategynandnTactics ......................................... 343
Chaptern17 ThenForeignnExchangenMarket ................................................................................... 363
Chaptern18 ThenInternationalnFinancialnSystem ........................................................................... 389
Chaptern19 ThenDemandnfornMoney.............................................................................................. 418
Chaptern20 ThenISLMnModel .......................................................................................................... 440
Chaptern21 MonetarynandnFiscalnPolicyninnthenISLMnModel...................................................... 466
Chaptern22 AggregatenDemandnandnSupplynAnalysis................................................................ 493
Chaptern23 TransmissionnMechanismsnofnMonetarynPolicy:nThenEvidence............................. 511
Chaptern24 MoneynandnInflation .................................................................................................... 529
Chaptern25 RationalnExpectations:nImplicationsnfornPolicy ........................................................ 549

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