Chapter 16 - The Structure of Central Banks: The Federal Reserve and the European Central Bank
The Structure of Central Banks:
The Federal Reserve and the European Central Bank
In this chapter we examine two important central b
Chapter 02 - Money and the Payments System
Money and the Payments System
As indicated by the title, this chapter covers money and the payments system, which
includes checks and electronic payments. The implications of new techno
Chapter 01 An Introduction to Money and the Financial System
An Introduction to Money and the Financial System
Chapter 1 introduces students to the five parts of the financial system and to the five core
principles that will be
Chapter 06 - Bonds, Bond Prices, and the Determination of Interest Rates
1. Consider a U.S. Treasury Bill with 270 days to maturity. If the annual yield is 3.8
percent, what is the price?
Answer: P =
(1 + 0.038) 9 / 12
Chapter 14 - Regulating the Financial System
Regulating the Financial System
In this chapter the sources and consequences of financial fragility are examined, with the
emphasis on banking crises. Next, the chapter looks at the
Chapter 07 - The Risk and Term Structure of Interest Rates
The Risk and Term Structure of Interest Rates
In this chapter students are introduced to the three factors that affect bond yields: default
risk, taxes, and maturity. Th
Chapter 12 - Depository Institutions: Banks and Bank Management
Depository Institutions: Banks and Bank Management
This chapter examines the business of banking, looking at where depository institutions
get their funds and what
A10 Options Hedging Assignment
Type your answer after the question and save the document for uploading to Blackboard.
The following Tables give information about Sun Microsystems Stock and Mar 01
options as Nov 7, 2000. (Note: Sun split 2 for 1 Dec. 7, 20
A11 Intel Option Question
1) Base your answers on the graph and data on the next page for the listed option contracts.
1. The above graph is for what kind of option?
2. How do you determine the option Type?
Consider the appropriate option with a 15 Strike
A8 Introduction to Treasury Futures. Go to the following URL and look at the 30 year Treasury Futures quotes. URL for 30 Year Treasury Futures: http:/www.cmegroup.com/trading/interest-rates/us-treasury/30-year-us-treasury-bond.html 1) Click on the tab for
11-15-2011 WSJ U.S. Central Bankers Duke It Out in Stimulus Debate By Michael S. Derby
Central bank officials spent Tuesday duking it out over whether they need to provide even more help to spur
growth in a weak U.S. economy.
At issue for central bankers
Ch 17 Summary Notes:
Fed Balance Sheet:
The monetary Base is made up of the two liabilities of the FED: A & C. The monetary base
represents the potential for increases in the Money Supply (Stock) depending upon the behavior
of FED policy, t
The crisis only strengthens the case for reform (see article). But it also means that reform must take place
against the background of austerity, as societies struggle to determine who will shoulder the burden of debt. The
darkening clouds of civil disobe
Class 23 Chapter 22 Basic Demand Side Shock analysis
Remember, shocks are of two kinds:
Exogenousthat is, they come from some non-policy source.
Endogenousthat is they arise from some policy change with in the economic system.
Also, these shocks can be ei
A12 Foreign Exchange Assignment
I have a friend Laszlo Torok (Lai) who lives in Gd, a small village just outside of Budapest
Hungary. He sent an email explaining the financial problems he was having with his sons
Our son Barnabas is attending
A11 Intel Option Question 1) Base your answers on the graph and data on the next page for the listed option contracts.
1. The above graph is for what kind of option? call 2. How do you determine the option Type? You compare the underlying strike price.
Portfolio Workbook Instruction Manual
(Note this instruction manual has been updated as of Sep 2009.)
You have just received a $5,000,000 from your grandfather as a gift. He has told you to invest this
money wisely and in many different are
A13 Bank Management Risk Assessment
Below is a basic balance sheet for a bank showing Assets on the left side
and Liabilities and Equity on the right side. The main classes of Assets and Liabilities
Using this balance sheet format, create a
A11 Intel Option Valuation
The above graph is for what kind of option? Call
How do you determine the option Type? The value of a Call option increases as
the underlying asset price increases, so the direction of the curve has a positive
a) (2pts) What two elements come with writing a Put? you have the right to sell the
underlying asset and they have the obligation to buy it. Writing means you are selling
Fill in the correct answers in red so that we can use
them to study for Exam 2 (unlike Exam 1 where we
had no idea if our answers were correct or not)!
A8 Introduction to Treasury Futures.
Go to the following URL and look at the 30 year Treasury Futures q
Class 5 Summary Points:
Interest rates are an import regulator of behavior. They signal the cost of choices
between the present and the future. Alternatively, they indicate the compensation
required to cover the opportunity cost of lendinggiving up use no
W 2011 MT 1 Exam Study Guide
The exam has 15 MC questions.
8 MCs are on various aspects of bonds & bills, pricing and yields
7 questions are on the other topics covered in the chapters and in class
Intermediaries does anyone know what
This is a classic Problem in Junk Bonds. The issue is timeless and the article is on that
has data that can be used. Questions below require information from the following
article on Junk Bonds issued by Macy's published 9/29/1992 in the Wall Street Jo
A3 Savings Account PV Problem
Question: Your parents put $50 at the end of each month in an account named for
you, which they opened Sept 1, 1991. The annual interest rate on the account was 3.6%
over the life of the account. (use end mode)
A) What is the
Please read the manual associated with this spreadsheet for
a better understanding of how to use the portfolio.
As of end of year 2011:
Face value of all bonds: 1000
All bonds for this problem pay zero coupon.
Strategy 1: Buy 1 year bond, roll over to another 1 year bond.
Strategy 2: Buy 2 year bond (matures at end of 2013)
What is the current price of the 1-
The Financial Crisis
Part I: The Purpose of Financial Institutions
Financial Institutions are the bridges that connect savers and borrowers, which in turn
form the financial markets. The purpose of a traditional bank is to take deposits and make loans.