ApostolosVSerletis
UniversityVofVCalgary
THE ECONOMICS OF M
V V V
ONEY, BANKING, AND F V V V
INANCIAL MARKETS V
Fifth Canadian Edition
V V
FredericVS.VMishkin
ColumbiaVUniversity
ApostolosVSerletis
UniversityVofVCalgary
Toronto
CopyrightV©V2014VPearsonVCanadaVInc.
AllVrightsVreserved.VThisVworkVisVprotectedVbyVCanadianVcopyrightVlawsVandVisVprovidedVsolelyVforVtheVus
eVofVinstructorsVinVteachingVtheirVcoursesVandVassessingVstudentVlearning.VDisseminationVorVsaleVofVanyVpar
tVofVthisVworkV(includingVonVtheVInternet)VwillVdestroyVtheVintegrityVofVtheVworkVandVisVnotVpermitted.VTh
eVcopyrightVholderVgrantsVpermissionVtoVinstructorsVwhoVhaveVadoptedVTheVEconomicsVofVMoney,VBanking,V
andVFinancialVMarkets,VFifthVCanadianVEdition,VbyVMishkinVandVSerletis,VtoVpostVthisVmaterialVonlineVonly
VifVtheVuseVofVtheVwebsiteVisVrestrictedVbyVaccessVcodesVtoVstudentsVinVtheVinstructor’sVclassVthatVisVusing
VtheVtextbookVandVprovidedVtheVreproducedVmaterialVbearsVthisVcopyrightVnotice.
, Contents
Preface ........................................................................................................................................................... iii
PartVOne HowVtoVUseVtheVInstructor’sVManualVandVOtherVTextbookVAncillaries ................... 1
OrganizationVofVtheVInstructor’sVManual........................................................................................ 2
AlternativeVCourseVOutlines............................................................................................................. 3
OverviewsVofVtheVTextbookVChaptersVandVTeachingVTips........................................................... 7
AnswersVtoVEnd-of-ChapterVProblems ............................................................................................ 7
PowerPointVPresentations.................................................................................................................. 7
TestVBank .......................................................................................................................................... 8
CourseVManagementVwithVMyEconLab .......................................................................................... 9
StudentsVandVMyEconLab ................................................................................................................ 9
InstructorsVandVMyEconLab............................................................................................................. 9
TheVMishkinVandVSerletisVCompanionVWebsite .......................................................................... 10
ReadingsVinVMoney,VBanking,VandVFinancialVMarketsV(OnlineVReader). ................................... 10
ListVofVReadings................................................................................................................ 11
StudyVGuide .................................................................................................................................... 16
PartVTwo OverviewsVofVtheVTextbookVChaptersVandVTeachingVTips......................................... 17
PartVThree AnswersVtoVEnd-of-ChapterVProblems ........................................................................... 53
PartVFour AnswersVtoVMini-Cases ................................................................................................... 167
PartVFive TransparencyVMasters:VChapterVOutlines ................................................................... 181
CopyrightV©V2014VPearsonVCanada
VInc.
, Preface
FromVourVexperience,VtheVdemandsVforVgoodVteachingVhaveVincreasedVdramaticallyVinVrecentVyears.
VToVaidVinstructorsVinVthisVchallengingVenvironment,VweVhaveVworkedVhardVtoVmakeVthisVInstructo
r’sVManualVaVvaluableVteachingVaidVthatVshouldVhelpVsaveVyouVtimeVinVpreparingVyourVclass.
RatherVthanVproceedingVchapterVbyVchapter,VthisVInstructor’sVManualVisVbrokenVintoVfourVparts.VPar
tVOneVcontainsVpedagogicVsuggestionsVonVsuchVtopicsVasVhowVtoVorganizeVtheVcourseVandVhowVto
VuseVtheVancillaries.VPartVTwoVoffersVchapterVoverviewsVandVteachingVtipsVthatVweVhaveVfoundVuse
fulVinVtheVclassroom.VPartVThreeVcontainsVtheVanswersVandVsolutionsVtoVtheVend-of-
chapterVproblemsVthatVareVnotVansweredVinVtheVbackVofVtheVtextbook.VPartVFourVprovidesVtheVtrans
parencyVmastersVforVtheVchapterVoutlines.
WeVhaveVfoundVthatVthisVorganizationalVstructureVmakesVitVeasyVtoVuseVtheVinstructor’sVmanual,Vespeci
allyVwhen,VasVhere,VtheVpagesVareVperforatedVsoVtheyVcanVbeVtornVoutVforVphotocopying,VeitherVforVc
lassVhandoutsVorVforVtheVinstructor’sVpersonalVuse.
WeVbelieveVthatVthisVInstructor’sVManualVwillVbeVanVextremelyVvaluableVtoolVinVteachingVtheVmoneyVand
VbankingVcourse.VWeVwouldVappreciateVanyVsuggestionsVorVcommentsVforVimprovingVtheVmanual.VDirec
tVallVcorrespondenceVtoVmeVatVtheVaddressVbelow:
ApostolosVSerletisVDepartm
entVofVEconomicsVUniversit
yVofVCalgaryVCalgary,VAlb
erta
T2NV1N4
ApostolosVSerleti
sVCalgary,VAlb
erta
CopyrightV©V2014VPearsonVCanada
VInc.
, CopyrightV©V2014VPearsonVCanada
VInc.