The Economics of Money, Banking, and Financial Markets

instructor’s manual

THE ECONOMICS OF MONEY, BANKING, AND FINANCIAL MARKETS

Second Canadian Edition

Frederic S. Mishkin

Columbia University

Apostolos Serletis

University of Calgary

Toronto

Pearson Addison Wesley. All rights reserved. This work is protected by Canadian copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to instructors who have adopted The Economics of Money, Banking, and Financial Markets, Second Canadian Edition, by Mishkin and Serletis to post this material online only if the use of the website is restricted by access codes to students in the instructor’s class that is using the textbook and provided the reproduced material bears this copyright notice.
CONTENTS

PREFACEiii

PART I:

HOW TO USE THE INSTRUCTOR’S MANUAL AND OTHER1

TEXTBOOK ANCILLARIES

Organization of the Instructor’s Manual3

Alternative Course Outlines4

Overviews of the Textbook Chapters and Teaching Tips8

Answers to End-of-Chapter Problems8

Transparency Masters of Chapter Outlines8

Instructor’s Resource CD-ROM

(Instructor’s Manual, TestGen, and PowerPoint Presentations)8

Companion Website9

PART II:

OVERVIEW OF THE TEXTBOOK CHAPTERS AND TEACHING TIPS11

PART III:

ANSWERS TO END-OF-CHAPTER PROBLEMS43

PART IV:

TRANSPARENCY MASTERS: CHAPTER OUTLINES75

PREFACE

From our experience, the demands for good teaching have increased dramatically in recent years. To aid instructors in this challenging environment, we have worked hard to make this Instructor’s Manual a valuable teaching aid that should help save you time in preparing your class.

Rather than proceeding chapter by chapter, this Instructor’s Manual is broken into five parts. Part I contains pedagogic suggestions on such topics as how to organize the course and how to use the ancillaries. Part II offers chapter overviews and teaching tips that we have found useful in the classroom. Part III contains the answers and solutions to the end-of-chapter problems. Part IV provides the transparency masters for the chapter outlines. PLEASE NOTE: INSTRUCTORS WHO HAVE ADOPTED THIS TEXT HAVE PERMISSION TO COPY ANY OF THE MATERIALS IN THIS INSTRUCTOR’S MANUAL FOR CLASS USE.

We believe that this Instructor’s Manual will be an extremely valuable tool in teaching the money and banking course. We would appreciate any suggestions or comments for improving the manual. Direct all correspondence to me at the address below:

Apostolos Serletis

Department of Economics

University of Calgary

Calgary, Alberta

T2N 1N4

Email:

Apostolos Serletis

Calgary, Alberta